How is Construction Business Profitable in Dubai?

by Zaara 25, Jul 2019

There has been N-number of foreign investors and entrepreneurs who are seeking to obtain residency in Dubai. For this purpose, many of them are investing in the real estate sector of Dubai which in turn is leading to the fast growth in the construction sector of the Emirate. Hence, due to which the value of such properties is in huge demand and are rising day by day. With the Dubai world expo 2020 approaching, the construction industry is booming. Every other month a new project is in line.

Business investors and entrepreneurs in Dubai have realized the potential aspect of starting a construction company in Dubai. This, in turn, has resulted in numerous applications reaching to the Department of Economic Development or DED.

Leading subsectors in the construction industry include:

  • Residential
  • Office market
  • Retail market
  • Hotel market
  • Healthcare market
  • Leisure market
  • Infrastructure sector



Aforementioned are the benefits business owners and entrepreneurs will be getting on starting a construction business in Dubai:

Lowest Construction Cost

UAE has been considered offering the Lowest construction cost in the whole world. It is usually lower than most of the developed cities. The reason for this is mainly due to the intense competition prevailing in the market with the low wages being a plus point in the construction industry. According to a survey report by Turner & Townsend, a UK-based construction service firm, Dubai is ranked as the 28th expensive place for construction. In terms of its geographical conditions, it has been rated as Lukewarm characterized by growing competition in the market thereby rise in the prices.

Stability in the Construction Sector

It has been provided by various experts that, as compared to other countries in the world, the price fluctuation in the UAE typically in Dubai is very less. Hence making the market in the UAE stable for growth. It has also been expected that the construction market will be stable in the coming years with 2-3 % of fluctuation. Hence, if you are planning to set up a construction company in Dubai, this is the time to do so as there is perfect stability availing in the market.

Major Government Investment

The government in the Middle East including Dubai are taking enormous and active steps in diversifying the economy in various other sectors and thus moving away from their reliance on oil and gas sector. The government of Dubai has funded a lot in the development of Real Estate. The Government has sanctioned an amount of USD 7.8 Billion for the expansion and growth of Dubai International Airport including a redevelopment project, costing USD 6.8 billion for the Abu Dhabi International Airport. Dubai government has earmarked some 17 % of its $12.88 billion budget in 2017 for infrastructure, showing the concerns for the world expo 2020 projects.  It has provided $381 million for the Jebel Ali Sewage Plant and approx. $66.15 million for the Deira area development project. Apart from these, there are other projects which are presently in progress such as Dubailand, the Arabian Canal etc.

Dubai Expo 2020

The Dubai World Expo 2020 is certainly going to be huge. For making it the best expo till the date Dubai government is making significant investments for the construction of projects for the said expo. According to the official website of Expo 2020, Dubai will be providing 47 construction contracts for the first World Expo in the Middle East, Africa and South Asia. The said contract is worth $ 3.0 billion in 2017. Apart from this other 98 non- construction contracts are worth $ 98 million. The Dubai infrastructure is going to get developed at a huge scale for the Expo 2020, so if your business is somehow connected to the construction sector, the new budget is definitely going to be beneficial to you. For more info visit the Expo 2020 e-sourcing portal.

Wages in Dubai

According to a report, the average hourly wage in the UAE is the lowest as compared to other countries in the world. It averages around $7.4 an hour as compared to other countries such as $84.2 in San Francisco, $104.1 in Zurich, $18.2 in Singapore etc. so talking about the availability of labour, the Middle East specifically Dubai has been defying a shortage as compared to other parts of the world. Henceforth, there has been a shortage of skilled labour hence the demand for such foreign investors with foreign labour are in huge demand.


Besides all the development and benefits for the foreign investors and other entrepreneurs, Dubai will definitely be provided with many surprises in future with the preparation of the Dubai World Expo 2020. So, if you are planning to set up a construction company in Dubai then this is a perfect time. For the setting up of a construction business in Dubai, many legal formalities are to be complied with. For any query, you can contact our professional team at Commitbiz. Our team provided end to end solutions for the incorporation of business in Dubai to it's winding up. Contact us.