Mubasher: The aggregated estimated value of the construction development pipeline in the MENA region has surpassed $3 trillion with Egypt, Saudi Arabia, and the UAE acquiring more than 60% of it, according to JLL’s Construction Market Intelligence report.

The Kingdom, meanwhile, dominated with a share of nearly 35%, equivalent to an anticipated value of $1.30 trillion, while Egypt and the UAE have an estimated value of $500 billion each.

Market Intelligence Lead MEA at JLL, Laura Morgan, said: “While global interest rate hikes, high levels of inflation and a sluggish trade recovery continued to impact the construction industry globally, the region stood out as an anomaly showcasing a sustained growth trajectory.”

During the first half (H1) of 2023, a total of $101 billion worth of construction projects have been awarded in the MENA region despite the challenging global economic conditions.

Saudi Arabia and the UAE dominated the project value in H1-23 with around $44 billion and $23 billion, respectively, accounting for 67% of the total. Both markets signalled an increase compared to H1-22, while Egypt witnessed an annual decrease in the value of awarded projects during the January-June 2023 yet it has a strong pipeline of upcoming projects.

In the UAE, residential developments were the strongest with more than $9 billion worth of awarded projects, with Dubai alone acquiring nearly 75% of the total value.

Both Saudi Arabia and Egypt awarded projects of $5 billion and $771 million in the sector, respectively.

During the period from 2024 until 2027, the construction market size in Egypt, Saudi Arabia, and the UAE is forecast to grow by 9%, 4%, and more than 3%, respectively.