UAE – Mubasher: The total value of projects awarded in the UAE during the first quarter (Q1) of 2026 declined by 18.5% or nearly $6.6 billion to reach $29.2 billion compared to $35.8 billion in Q1-25, Kamco Invest said in its latest market update report.
Based on data collected by MEED Projects, the annual decline in Q1-26 project contracts was underpinned by a broad-based drop in annual project awards for six out of the eight sectors during Q1-26.
The power sector recorded a 95.8% or $7.6 billion decrease in contracts awarded to reach $333 million at the end of March 2026 against $8 billion in Q1-2025.
The UAE projects market once again overtook Saudi Arabia as the biggest projects market in the GCC during Q1-26, despite a decline in its share of total GCC projects from 52.9% in Q1-25 to 47.7% in the January-March 2026 period.
Kamco Invest said: “In context, despite the dip in the overall aggregate of quarterly project awards, there has been robust gains in two sectors namely the gas and transport sectors for projects awarded in the UAE during the quarter.”
It added that the UAE's projects market has recently been positive and is currently undergoing robust expansion.
Furthermore, there are currently nearly $550 billion worth of projects in the pipeline in the UAE, of which 57.1% are marked for the construction sector, followed by 11.5% which are earmarked for the transport sector.
Publicly funded modernizing projects are fueling this strong project growth, such as the expansion of Etihad Rail's passenger network across the emirate starting in 2026, with a direct Abu Dhabi-to-Dubai journey projected to take roughly 50 minutes.
Sectoral Performance in UAE
In terms of sectoral performance, the transport sector comprised the largest share of new project awards in the UAE, representing 34.4% of total projects during Q1-26. The totaal value hit $10.1 billion compared to $3 billion awarded in Q1-25.
The gas sector reported the second-largest aggregate value of contracts awarded in the UAE during Q1-26, reaching $8.5 billion compared to $2.9 billion in Q1-25.
In the UAE's construction sector, Q1-26 aggregate contracts awarded dropped 39.9% annually to reach $7 billion, compared to $11.7 billion in Q1-25.
Dubai's property market remains a primary driver and has recently been shifting from rapid gains to stable growth.
The market update report showed that some of the notable projects awarded in the UAE during Q1-26 include the $544 million contract from Dubai South Properties to deliver multiple phases of Hayat by Dubai South, a master-planned community spanning 10 million square feet (sqft), awarded to Kuwaiti contractor Mohammed Abdulmohsin Al Kharafi & Sons.
The project is expected to cover around 2,500 residential units, including townhouses, semi-detached and standalone villas, mansions, apartments, and hotel apartments, with one- to five-bedroom layouts.
Another significant contract awarded during Q1-26 was the $545 million contract to develop over 2,210 residential units at its Aljada community in Sharjah.
It isworth noting that the GCC project activity is expected to witness sluggish momentum in 2026, weighed down by the destabilizing repercussions of the US-Iran conflict for the region as well as for the global economy.
