UAE Construction Sector Eyes AI, Modular Methods to Drive Next Decade of Growth

Government policy and private-sector strategy converged in Dubai at a recent invitation-only forum where senior industry leaders mapped the forces they expect to reshape UAE construction over the next decade. The gathering, Construction The Way Forward, was hosted by the Indian Business & Professional Council’s Real Asset & Built Environment Focus Group and co-hosted by ESPA Group. Three themes dominated: the government’s “Make it in the Emirates” agenda, artificial intelligence adoption, and modular construction practices designed to strengthen supply chain resilience.

Executives from construction, real estate, engineering, manufacturing, banking and technology sectors examined how digital transformation, sustainability, localization and industrial growth are redefining the sector’s operational landscape. Dr. Rajeev Neelivethil, Convener of the Real Asset & Built Environment Focus Group at IBPC Dubai and Managing Director for MENA and APAC at ESPA Group, moderated the discussion. His central takeaway was direct: “Resilience is no longer a response; it is a strategy. The UAE sits at the centre of global trade and innovation, and the future of construction will be built through collaboration, digital transformation and sustainable leadership.”

Additional reference context is available at https://www.tradingview.com/news/reuters.com,2026-07-14:newsml_Zaw29Z1ZJ:0-zawya-make-it-in-the-emirates-ai-and-modular-construction-to-drive-the-next-decade-of-uae-infrastructure/.

Local manufacturing drew sustained attention throughout the forum. Rising shipping costs and geopolitical uncertainty have accelerated developer demand for UAE-manufactured products, reinforcing the government’s localization policy and the commercial openings created by the UAE’s Comprehensive Economic Partnership Agreements with 28 countries. AbdelRhman Obaid, Group CEO of MAHY Khoory Group, argued that the “Made in the UAE” label now carries genuine weight internationally. “Made in the UAE now stands for quality. Manufacturing across infrastructure, technology, furniture and consumer products will continue to accelerate,” he said.

Kommineni Mahender, Executive Director of BILT at ABM Group, offered a complementary view: recent market disruptions have, paradoxically, deepened confidence in local sourcing. “Projects don’t move because of the market; they move because of people. The UAE market remains fundamentally strong, and recent challenges have strengthened confidence in local manufacturing.”

Meanwhile, artificial intelligence is reshaping project delivery at a structural level. Wael Mansour, CEO of Royal Advance Electromechanical at Trojan Construction Group, pointed out that materials account for almost 70 percent of project costs, making AI-powered procurement one of the industry’s most consequential opportunities. Intelligent engineering, Building Information Modelling, digital twins and modular construction are already changing how projects are executed, he said, and will become standard practice across the sector. “The future of MEP has already started. Buildings are becoming smarter during construction, and modular systems will redefine how we deliver projects.”

Mansour also cited the development of one of the region’s largest 5-gigawatt data centres as concrete evidence of the country’s technology ambitions. Subraya Kalkura, Managing Director of John R. Harris & Partners, noted that demand is shifting toward data centres and digitally enabled infrastructure more broadly. AI-powered simulation and Building Information Modelling are enabling more sustainable building design in support of the UAE’s Net Zero 2050 targets. “Technology allows us to simulate how buildings will perform before they are built. AI will become one of our strongest tools for delivering more sustainable infrastructure,” he said.

Governance questions surfaced alongside the technology discussion. Industry leaders called for stronger oversight mechanisms, more standardized contracts and improved payment practices to reinforce the construction ecosystem’s foundations. The call for standardization reflects a recurring tension in fast-growing markets: rapid project pipelines can outpace the contractual and regulatory frameworks meant to govern them.

Despite global uncertainty, panelists expressed strong confidence in the UAE’s long-term trajectory, citing continued infrastructure investment, political stability and digital transformation as the pillars underpinning sustained growth. Sunil Sinha, Vice Chairman of IBPC Dubai, opened the forum by grounding the sector’s ambitions in human terms. “Who created the skyline we admire so much? The people who transform land into hospitals, malls, homes and airports, and they are all in this room today.”

The question left open by the forum is whether the governance reforms leaders called for will keep pace with the scale of transformation they are predicting.