Infrastructure - Industry - MEA Market, Share and Trends 2023-2028

Summary of Infrastructure

The infrastructure industry in the Middle East and Africa (MEA) region has seen steady growth in recent years, driven by government spending on large-scale projects. Key trends include: a focus on developing transport infrastructure like roads, railways and ports as well as energy infrastructure.

Based on our estimates, we can say that the Middle-east and Africa’s infrastructure industry is forecasted to be a $2614.46 billion industry in 2029 from $1430 billion in 2023 with a CAGR of 10.47 %.

Many countries in the region have launched ambitious infrastructure development plans to support economic growth and diversification objectives. There has also been a drive towards more sustainable and technology-enabled infrastructure. Public-private partnerships are increasingly being utilized to finance complex large-scale projects.

However— the industry faces challenges such as political and economic uncertainty, shortage of technical skills and declining oil revenues in some countries. The COVID-19 pandemic has also disrupted project timelines and supply chains.

Overall— the MEA infrastructure industry is poised for moderate growth in the coming years, underpinned by urbanization and industrialization trends as well as continued government commitment to infrastructure spending. More effective risk management and adoption of digital technologies will be key to unlocking the industry’s full potential across the region.

Recent Trends and Insights

Infrastructure projects in the region are increasingly focused on environmental sustainability, renewable energy and adoption of green building standards. The UAE has launched the Infrastructure Sustainability Council to drive sustainability practices.

Major public transit projects are underway in many MEA cities to cater to rapid urbanization. Dubai and Riyadh are making multi-billion dollar investments in metro rail infrastructure and bus rapid transit systems.

Landmark transport corridors linking MEA with Asia and Europe are being developed, including the Gulf Railway and the Djibouti-Addis Ababa railway. Port infrastructure is also being expanded under initiatives like Oman’s Duqm Special Economic Zone.

Smart city projects across the region are driving technology integration in urban infrastructure using IoT, big data and AI. 5G networks are also being launched to enable smart mobility.

Governments are collaborating with private firms under PPP models to develop complex infrastructure projects in transport, utilities and social infrastructure. This enables risk and cost sharing.

Large program management firms are being engaged to provide consultancy on effective project planning, design and delivery as the scale of projects increases. Adopting global best practices in project management is a priority.

Product Insights

Electric construction machinery like— excavators and cranes are gaining popularity, driven by emission norms and cost efficiencies from new battery technologies. Volvo and Hyundai have launched electric compact excavators and cranes in the region.

Modular and prefabricated construction methods are being adopted for infrastructure projects to improve quality, safety and speed. This also enables leaner operations and less waste. Saudi Arabia has established a $4 billion modular construction plant and is using prefab products for its Neom smart city.

Products like aerogel insulation, nano-enhanced concrete, self-healing concrete and thermochromic smart glass with advanced solar-control properties are gaining traction for green energy-efficient buildings. R&D investments in advanced materials is increasing.

Smart mobility technologies like intelligent transportation systems, electronic toll collection systems, smart parking solutions, electric vehicle charging infrastructure and vehicle-to-everything (V2X) communication systems are being incorporated into transport infrastructure projects across the region.

High-efficiency solar PV panels, concentrated solar power systems, wind turbine solutions tailored for high ambient temperatures, smart inverters and grid stabilization technologies are crucial to tap the region’s immense solar and wind energy potential.

The COVID-19 pandemic has increased focus on touchless and automated solutions across various infrastructure sectors such as automated building entry systems and touchless elevators in urban transit networks. Sensor-based operations and maintenance of infrastructure assets are also growing in demand.

Overall— technology and sustainability considerations are driving infrastructure product innovation and investments in the region’s manufacturing sector to reduce reliance on imports. This trend will intensify with countries like Saudi Arabia and UAE making it a priority in their strategic economic plans.

Key Companies

Some major players within this vast domain of industry are

• Saudi Binladin Group
• Arabtec Construction
• Orascom Construction
• Consolidated Contractors Company
• Murray & Roberts
• Emaar Properties
• Qatar Rail
• Dubai Electricity and Water Authority (DEWA)
• Etisalat
• Saudi Electricity Company

Regional Analysis

The MEA region has become one of the fastest growing infrastructure markets globally with spending estimated at $2.7 trillion from 2020 to 2030. Several key factors are driving this growth across the region:

Countries across the region are investing heavily in infrastructure to enable economic diversification objectives and transition away from over-reliance on oil exports. This is catalyzing major transport, utilities and urban development projects.

The region has a fast growing, young population with high urbanization rates. This is necessitating massive investments into urban infrastructure like mass transit systems, housing, hospitals and schools to meet rising demand.

Industrialization is a key priority, with countries establishing special economic zones, industrial parks and ports infrastructure to enable manufacturing and logistics. This is expanding the market for industrial construction services and products.

Market Segmentation

By Type:

• Transportation Infrastructure
• Energy Infrastructure
• Water and Sanitation Infrastructure
• Communication Infrastructure
• Social Infrastructure

By End User:

• Government
• Private Sector
• Public-Private Partnerships (PPP)
• Industrial Sector
• Residential Sector

By Enterprise Size:

• Large Industries
• Small & Medium Industries

By Country:

• Saudi Arabia
• Iran
• United Arab Emirates
• Israel
• Egypt
• Iraq
• Qatar

Our Methodology

We have offered a well-founded review of the Middle-east and Africa’s regional Infrastructure Industry market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.