The UAE Construction Boom: A Golden Era for Building Materials

The UAE is currently experiencing an unprecedented construction boom, with a surge in demand for building materials driven by a wave of ambitious projects and visionary developments. This trend is expected to persist, heralding a golden era for the building materials sector. The construction landscape is being reshaped by monumental projects, including a new terminal at Al Maktoum Airport and numerous developments by leading property developers like Emaar Properties.

Transforming Skylines and Infrastructure

Dubai’s new terminal at Al Maktoum Airport is a cornerstone of this transformation. With an investment of Dh128 billion ($34.8 billion), this project aims to expand the airport’s capacity to 260 million passengers. This development is not just an infrastructure upgrade but a catalyst for surrounding property markets. Developers have already announced projects near the area, anticipating heightened demand from buyers attracted by the improved connectivity and enhanced facilities.

Surge in Property Developments

Beyond Dubai, new projects are being unveiled across the Emirates, reflecting a robust demand for property amid rising prices. This surge is a testament to the UAE’s economic vitality and its appeal as a prime real estate destination. “The new terminal airport in Dubai and all the developments in Abu Dhabi are showing quite healthy demand. We expect that demand to grow for the foreseeable future,” said Hugo Losada, CEO of building materials at Emirates Steel Arkan, at the Make it in the Emirates forum.

Emirates Steel Arkan: Riding the Wave

Emirates Steel Arkan, the largest public steel and building materials business in the UAE, is at the forefront of this boom. The company, which was formed after the merger of Emirates Steel and Arkan Building Materials in 2021, is experiencing a surge in demand for its products. Last year, Emirates Steel Arkan sold Dh1 billion worth of building materials in the UAE and expects a 5 to 10 percent growth in sales in 2024. This growth is fueled by ongoing and new construction projects that require a steady supply of high-quality materials.

Commitment to Local Sourcing and Sustainability

One of the critical aspects of Emirates Steel Arkan’s strategy is its commitment to local sourcing and sustainability. The company prides itself on a high level of in-country value, sourcing raw materials like cement and blocks locally. This approach not only supports the local economy but also reduces carbon emissions associated with long-distance transportation. Emirates Steel Arkan’s decarbonization drive includes recycling locally sourced scrap and other materials, aligning with the UAE’s broader sustainability goals.

Operation 300bn: A Vision for Industrial Growth

The UAE’s ambitious Operation 300bn initiative aims to elevate the industrial sector’s contribution to the national GDP from Dh133 billion in 2021 to Dh300 billion by 2031. The initiative reflects the UAE's commitment to becoming a global industrial hub. Emirates Steel Arkan is a key player in this vision, contributing significantly to Abu Dhabi’s manufacturing industry and increasing its local procurement by 34 percent last year.

Dubai Industrial City: A Hub of Activity

Complementing these efforts is Dubai Industrial City, part of the Tecom Group, which has attracted Dh2.8 billion in investments over the past 18 months. The industrial zone has become a magnet for sectors such as food and beverages, building materials, transport, and machinery equipment. Strategic advantages like proximity to Jebel Ali port and Al Maktoum airport, along with favorable economic partnership agreements, enhance the export potential of “Made in UAE” products.