Investing in the booming UAE construction industry
Why now is the perfect time with RAKEZ
The UAE construction sector continues to scale impressive heights, holding a dominant 44 per cent share of all new MENA projects as of 2023. This growth is a powerful testament to the country’s ongoing development, presenting an attractive landscape for investors. According to forecasts, the UAE’s construction industry is set for CAGR of 5.7 per cent through 2028, underscoring a lucrative, expanding market that offers strong returns.
As global industry players converge at Big 5 Global next week, the UAE’s premier construction expo, the timing couldn’t be better to spotlight key opportunities within this sector.
Major UAE projects
A number of high-value projects across the UAE illustrate the nation’s ambitious construction vision. Leading the way is the substantial expansion of Al Maktoum Airport, a project valued at $34.8 billion, reinforcing the country’s reputation as an international transit hub. Additionally, the upcoming GCC’s first integrated resort by Wynn Resorts in Ras Al Khaimah, backed by over $5 billion, points to the growing appeal of tourism and entertainment in the UAE.
Beyond these flagship projects, demand for luxury residential spaces continues to soar. In Q1 2024 alone, the UAE’s luxury home sales reached a remarkable $1.7 billion, while the hospitality sector added to the momentum with 135 new hotels under construction nationwide. These developments offer substantial growth potential, particularly as the UAE’s construction market is projected to reach over $133 billion by 2027.
Growth drivers
Sustainability is at the forefront of the UAE’s construction priorities, as government regulations and consumer demand increasingly call for green building practices, sustainable materials, and modular building techniques. The move toward eco-friendly solutions has led developers to adopt cutting-edge methods that reduce environmental impact, positioning the UAE as a leader in sustainable construction.
RAKEZ: The ideal base for construction ventures
Ras Al Khaimah Economic Zone (RAKEZ) stands out as a key entry point for construction businesses looking to establish or expand in the UAE. Offering a multitude of advantages, RAKEZ has fast become a hub for companies aiming to capitalise on the regional construction boom.
Strategic advantages
One of the standout features of RAKEZ is its prime location and connectivity. Situated in Ras Al Khaimah, it offers seamless access to global markets and the rapidly growing local economy, where over 1,000 construction projects worth more than $75 billion are currently underway. Projects like Al Marjan Island, Mina Al Arab, Hamra Village and the impressive RAK Central at Al Hamra – a mixed-use development with 1 million square feet of rentable office spaces, over 4,000 residential apartments, three hotels, multiple parks and retail and entertainment options.
Additionally, Ras Al Khaimah’s masterplan for tourism involves increasing the residential capacity from about 400,000 to 650,000 within five years. The emirate also plans to double the number of available rooms from 8,000 to between 15,000 and 20,000. All these developments showcase the range and scale of construction-related projects and vast opportunities available within the reach of RAKEZ.
Supportive environment
RAKEZ provides a comprehensive, business-friendly ecosystem, offering more than just a physical space for construction firms. The economic zone facilitates end-to-end support, including assistance with necessary approvals, links to financing options, and introductions to key suppliers and partners. With RAKEZ’s services, businesses can efficiently manage logistics, access specialised workforce, and build connections with top suppliers, streamlining their entry and operations within the UAE.
Proven success stories
The success of internationally renowned construction firms within RAKEZ underscores its effectiveness as a base for industry players. Companies like Peikko Group, a leading provider of concrete connections and composite structures, have leveraged RAKEZ’s advantages to successfully expand their regional operations. Sobha Modular, known for sustainable and prefabricated building solutions, and Hira Industries, a global leader in construction and HVAC products, have also capitalised on RAKEZ’s robust infrastructure to thrive within the UAE market. For instance, in January this year, Hira Industries underwent its fourth expansion since joining the RAKEZ business ecosystem 15 years ago in 2008.
Growing from a modest team to a workforce of more than 1,000 and the company’s 700,000 square feet facility in RAKEZ’s Al Ghail Industrial Zone, exemplify its growth journey in the economic zone not just in terms of physical facilities and operations, but also in workforce development and a broadening business scope within the construction sector. These examples illustrate the potential for growth and success that RAKEZ offers to new entrants and established players alike.
Long-term success means investing with RAKEZ
For companies in the construction sector, RAKEZ provides a strategic, supportive base to capitalise on the UAE’s expanding construction market. RAKEZ offers tailored solutions that meet the evolving needs of modern construction businesses. With its comprehensive ecosystem and proximity to high-profile projects, RAKEZ is an ideal partner for those seeking sustained growth and profitability in one of the world’s most dynamic construction markets. Learn more by visiting www.rakez.com
To get started with RAKEZ, call +971 7 204 1111 or send an email to info@rakez.com