UAE Deepens Investment in Social Infrastructure Amid Population Growth and Strategic Reforms - Middle East Business News and Information

Mid East Info

7 hours ago

UAE – June 16, 2025: The Middle East will see a 25% increase in social infrastructure project activity in the next two years, according to a new report by Ansarada , a leading procurement platform. 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 EMEA stakeholders cite population growth and improved quality of life as key investment drivers.
Ansarada's Social Infrastructure Outlook 2025 explores key themes such as procurement efficiency, risk allocation and the shift towards workflow digitalisation, providing up-to-the-minute insights into prevailing procurement trends.
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.'
The UAE federal government has allocated over AED 27 billion ($7.4 billion) to upgrade infrastructure, its most ambitious investment to date, 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.
At the same time, EMEA has emerged as the most competitive region, with 30% of professionals reporting very high levels of competition during the bidding stage of their most recent projects, significantly higher than any other market surveyed. By comparison, only 10% of respondents in Asia-Pacific reported similar levels of competition, pointing to deeper structural differences and market maturity across regions.
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.
The findings come amid growing complexity and urgency in delivering high-impact social infrastructure projects, particularly in rapidly developing markets such as the UAE, where demand for quality healthcare and education is accelerating
The report confirms the UAE's emergence as the Middle East's infrastructure innovation hub, where digital-first procurement models are enabling faster, more cost-effective, and sustainable project delivery.
Ansarada in partnership with Infralogic, surveyed 150 senior executives across APAC EMEA, and the Americas. Respondents included government agencies, privately-owned transport infrastructure developers and transaction advisories.