I assume OP meant something like this, building the image on the remote host directly using a docker context (which is different from a build context)

  docker context create my-awesome-remote-context --docker "host=ssh://user@remote-host"

  docker --context my-awesome-remote-context build . -t my-image:latest

This is exactly what I do, make a context pointing to the remote host, use docker compose build / up to launch it on the remote system.