The Gulf construction landscape has seen a dramatic change, with the UAE awarding roughly $31 billion in construction projects so far in 2025, surpassing Saudi Arabia’s $20.6 billion at the same time. The UAE has led the world in project awards value for the first time since 2018.
Despite economic challenges facing the larger Gulf area, the UAE’s ambitious push on real estate and infrastructure is reflected in the upswing. New advancements in the transportation, tourism, energy, and smart city sectors are still being unlocked by Dubai and Abu Dhabi. Crucially, this increase is a component of a larger initiative to integrate innovation-led economic growth and diversify post-oil earnings.
Saudi Arabia, in contrast, is slowing down. The kingdom has slowed awarding new contracts—awarding just $4 billion in giga-projects this year while prioritizing major global sporting events and Vision 2030 investments. However, it still maintains an enormous pipeline, with about $1.6 trillion in planned projects in the queue
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Analysts warn that Saudi’s current lead may rebound later in the year as mega-stadiums and infrastructure tied to the 2034 FIFA World Cup move into production. Still, the UAE’s current edge underscores its resilient strategy, combining aggressive execution with fiscal visibility. As the region navigates global economic pressures and fluctuating oil prices, both nations keep their eyes on long-term infrastructure goals—each with their own roadmap and tempo
