Middle East Investing More in Social Infrastructure

Ansarada, a leading procurement platform, on Monday said that the Middle East region will see a 25% increase in social infrastructure project activity in the next two years.

In its latest report entitled “Social Infrastructure Outlook 2025,” Ansarada said that as the 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.

Ansarada in partnership with Infralogic, surveyed 150 senior executives across APAC EMEA, and the Americas for the report. The respondents included government agencies, privately-owned transport infrastructure developers and transaction advisories.

In 2024, the Middle East had a total value of $1.6 billion in social infrastructure transactions, which is expected to grow to $2 billion by 2027. Almost half (46%) of EMEA stakeholders cite population growth and improved quality of life as key investment drivers, the report noted.

Ansarada’s report 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.

Notable Shift

Ansarada Managing Director Justin Smith said that they were witnessing a notable shift in how infrastructure capital was being deployed across the Middle East, with the UAE playing a leading role in this evolution.

He said that 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,” Smith added.

Coming to the UAE, the federal government has allocated over $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 was followed by leisure (56%) and education (52%), reflecting a broader focus on community well-being and long-term social resilience.