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Middle East social infrastructure spend to hit US$2bn by 2027

The Middle East will see a 25% increase in social infrastructure project activity in the next two years, according to a new report by the procurement platform Ansarada.

Aerial view of Dubai Palm Jumeirah island, United Arab Emirates. Aerial view of Dubai Palm Jumeirah island, United Arab Emirates. Image: Adobe Stock

The report says that as population growth accelerates and quality-of-life standards become increasingly central to national agendas, governments across the Middle East are intensifying investment in social infrastructure projects.

In 2024, the Middle East had a total value of US$1.6 billion in social infrastructure transactions, which is expected to grow to US$2.0 billion by 2027. According to the report, almost half (46%) of Europe, the Middle East and Africa (EMEA) stakeholders cite population growth and improved quality of life as key investment drivers.

“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,” said Justin Smith, managing director, Ansarada.

The UAE federal government has allocated over AED 27 billion ($7.4 billion) to upgrade infrastructure, driven by 4% annual population growth and rising global investor interest. To meet demand, the government is increasingly using public-private partnerships (PPP) models to fast-track delivery and leverage private sector expertise.

More broadly, healthcare has emerged as the top investment priority for EMEA, with 68% of procurement professionals indicating the sector will see the greatest increase in value over the next two years. This is followed by leisure (56%) and education (52%), reflecting a broader focus on community well-being and long-term social resilience.

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