Abu Dhabi seeks Turkish contractors to fill construction industry gaps

Abu Dhabi developers and infrastructure companies are seeking the expertise and skills of Turkish contractors, architects and engineering companies as development booms in the UAE.

The Abu Dhabi Projects and Infrastructure Centre (Adpic) is managing more than 600 active capital projects valued at more than $55 billion across housing, mobility and cultural assets, Maysarah Mahmoud Eid, director general, said at the Abu Dhabi International Roadshow for Capital Projects and Infrastructure in Istanbul, Turkey.

Adpic oversees strategic capital projects in Abu Dhabi from planning to delivery.

“In 2024, we completed over 11,000 homes,” Mr Eid said. “In the coming years, we aim to activate a significant amount of our projects through private sector investments.”

Abu Dhabi aims to deliver more than 40,000 homes in the next three to five years and this requires a huge supply chain, said Mohamed Alsuwaidi, Adpic's executive director of capital projects in the financial affairs sector. He recommended Turkish companies to localise manufacturing in Abu Dhabi, especially for modular construction.

Abu Dhabi is seeking more private sector investment to develop its non-oil sector and diversify its economy. Last year, the emirate said it would need private sector investment to develop Dh450 billion ($122.5 billion) worth of infrastructure projects over five to 10 years.

The UAE capital’s initiative to adopt the public-private partnership (PPP) model is providing opportunities for foreign consultancies and contractors to invest in infrastructure development in the emirate.

In the first six months of this year, Adpic signed PPPs worth Dh22 billion ($6 billion). It is targeting more than $20 billion in investment through PPP models in the next five years, Mr Alsuwaidi said.

The city has a pipeline of infrastructure and urban development projects worth more than $54 billion. The work includes schools, housing, roads and other infrastructure.

Shortage of contractors

Carlos Wakim, chief executive of property developer Bloom Holdings – which has a project pipeline of Dh50 billion, said there is a shortage of contractors in the UAE because several schemes are under development simultaneously.

Contractors have their hands full, so it is “a good idea to seek some help from outside”, Mr Wakim said. Turkish contractors have been involved in UAE infrastructure projects, he added.

“We are now interested in getting new players to the UAE who specialise in roads, utilities and MEP [Mechanical, Electrical, and Plumbing]. We are also trying to source construction materials globally,” Mr Wakim said.

“The PPP model is beneficial for big projects whose costs run into billions, especially in the power and utilities sector.”

Similarly, Muhye Mansour, chief development officer of Lead Development, said the UAE’s development industry is facing supply chain challenges, which the proactive approach to seeking outside collaboration will help to resolve.

There is a shortage of kitchens, wardrobes, building materials, doors, steel and services due to the construction boom in the UAE. The current supply chain channels cannot support demand, Mr Mansour said.

Turkey has experience of building major infrastructure such as tunnels, bridges and transportation and Abu Dhabi could collaborate with them to expedite the development boom, he suggested.

Ahmad Ayyad, executive director of operations at Modon Real Estate, said the Abu Dhabi development industry’s supply chain requirements include master planning consultants, design consultants, project management services (such as engineers and cost consultants), road and infrastructure consultants and professional services such as marketing, information technology and technical studies.

There are opportunities for Turkish companies in transport and mobility projects, urban development and mixed-use communities, and social infrastructure such as schools and healthcare facilities, said Abdulhadi Almansoori, acting executive director of Al Dhafra Infrastructure Development at the Department of Municipalities and Transport.

Trends driving infrastructure

Marc Milosevic, chief executive of IHC-backed infrastructure development company Gridora, said four major trends are driving the demand for infrastructure in the emirate. Abu Dhabi’s population is expected to reach 5.4 million by 2040 from 4 million currently. This will drive infrastructure projects across transport, housing, social and utilities.

Secondly, the emirate’s economy is expected to grow at 4 per cent in 2025 and 6 per cent in 2026, which requires infrastructure expansion in areas including transport, energy, tourism and culture. Thirdly, the UAE artificial intelligence 2031 strategy will drive demand for digital infrastructure. Fourthly, under Abu Dhabi’s environmental vision, it will require an additional 19GW power generation capacity by 2037, he said.

“The UAE infrastructure market is projected to grow from $45 billion in 2025 to $70 billion annually in 2034 at a rate of 5 per cent annual growth in the next 10 years. This will require $570 billion cumulative investments over 2025-2034 in the UAE,” Mr Milosevic said.

“Transportation, social and digital infrastructure make up two-thirds of this market. Ninety per cent of executed PPPs are in the energy and utilities sector.”

Abu Dhabi is spending $8 billion on greenfield roads and road upgrades to connect the islands and various regions, with an outlay of $5 billion for social buildings (education, health and housing), resilience infrastructure and stadiums in the emirate, according to data from Gridora.

Project finance experience

Kerim Esat, general manager of Turkish company Dogus Construction, said contractors from his country have experience working with PPP, build, operate, transfer and EPCF (engineering, procurement, construction and financing) finance models. They can also mobilise immediately in different locations, all of which aligns with Abu Dhabi’s requirement to complete large-scale projects within time frames.

“However, many large-scale projects in the UAE are being tendered at the same time. That may cause a shortage of manpower and material supplies,” Mr Esat warned.

Erdem Tavas, a board member of the Turkish Contractors Association, which represents leading Turkish construction firms including Limac and Dogus Group, said the country's contractors have maintained an average annual business volume of $30 billion.

In 2024, Turkish contractors signed 382 projects worth $31.1 billion in 60 countries, with the UAE and Saudi Arabia emerging as leading markets. In the first 10 months of 2025, despite global uncertainties, Turkish firms secured 135 projects worth $9.4 billion in 38 countries, he added.

“In the UAE, Turkish contractors have completed 150 projects worth $19 billion. They are mostly tourism and residential facilities, roads, bridges, tunnels, ports, airports, metro lines, urban infrastructure, power plants, water treatment and petrochemical facilities,” Mr Tavas said.

The UAE and Turkey are boosting investment co-operation after signing a Comprehensive Economic Partnership Agreement in 2023. The two countries have signed investment agreements spanning sectors including technology, finance, manufacturing and infrastructure development following the deal.