UAE Boosts Social Infrastructure Investment Amidst Population Growth

The Middle East is poised for a significant surge in social infrastructure development, with a projected 25% rise in project activity over the next two years. This momentum is being driven by rapidly expanding populations and an increasing focus on elevating quality of life—priorities that are now central to national strategies across the region. Governments are responding by ramping up investment in infrastructure that directly benefits citizens, from healthcare and education to public amenities.

Growing Transaction Volumes and Investment Drivers

In 2024, the total value of social infrastructure deals across the Middle East stood at approximately US$1.6 billion. This figure is expected to grow to US$2.0 billion by 2027, marking a robust upward trend. The latest "Social Infrastructure Outlook 2025" by Ansarada attributes this growth primarily to population pressures and the rising importance of quality-of-life indicators. Nearly half of the stakeholders surveyed across Europe, the Middle East, and Africa (EMEA) highlighted these two factors as the leading motivations behind infrastructure investments.

Justin Smith, Managing Director, Ansarada, said, “We're seeing a notable shift in how infrastructure capital is being deployed across the Middle East, with the UAE playing a leading role in this evolution. Through strategic reforms, ongoing population growth, and government initiatives promoting technology-enabled procurement, the UAE appears to be enhancing project delivery while working toward higher standards for sustainable urban development. This progressive approach is contributing to changes in how healthcare, education, and housing infrastructure are funded, built, and managed throughout the region.”

UAE Leads with Record Infrastructure Allocation

The UAE is at the forefront of this infrastructure wave, having committed more than AED 27 billion (US$7.4 billion) in its largest federal investment of its kind. This ambitious allocation is spurred by a steady 4% annual population increase and heightened interest from global investors. To accelerate project timelines and tap into private sector expertise, the UAE is increasingly adopting public-private partnership (PPP) frameworks, ensuring quicker, more efficient delivery of infrastructure goals.

Rising Competitive Pressure in EMEA Markets

The EMEA region has also become the most fiercely competitive market for social infrastructure bidding. A striking 30% of professionals in the region reported encountering intense competition during the tendering process for their most recent projects—a rate three times higher than that reported in Asia Pacific. This discrepancy suggests that EMEA markets are more mature and structurally advanced, attracting a greater number of bidders and raising the bar for project execution.

Healthcare Tops the List of Priority Sectors

When asked about sectoral focus, procurement professionals across EMEA identified healthcare as the foremost priority for upcoming infrastructure investments. 68% of respondents expect the healthcare sector to see the largest increase in value by 2027. This is closely followed by leisure (56%) and education (52%), indicating a broader regional commitment to long-term societal resilience and improved community services.

The UAE's Role as a Digital Infrastructure Pioneer

The report highlights the growing complexity and urgency in executing high-impact infrastructure projects, particularly in fast-developing markets like the UAE. In this landscape, the country has established itself as a regional leader in infrastructure innovation. By embracing digital-first procurement strategies, the UAE is achieving faster, more sustainable, and cost-efficient project delivery. These advancements not only streamline traditional processes but also ensure infrastructure keeps pace with the evolving needs of its population.