Middle East
Strong growth requires careful planning
There will be significant growth and opportunities across the Middle East, although these will not be without challenges. Growth will be driven by government-led investment in infrastructure and nationally important transformative projects. Investment in sustainability across the region also looks set to grow, providing opportunities for companies ready and willing to take advantage of them.
Strong growth requires careful planning
There will be significant growth and opportunities across the Middle East, although these will not be without challenges. Growth will be driven by government-led investment in infrastructure and nationally important transformative projects. Investment in sustainability across the region also looks set to grow, providing opportunities for companies ready and willing to take advantage of them.
Saudi Arabia
Construction activity is set to accelerate with an economic growth forecast of 4.4%, up from 1.4% in 2024.² Opportunities for construction are likely to be focused on infrastructure, hospitality and residential developments. The country’s successful bid to host 2034 FIFA World Cup and Expo 30 in Riyadh is fuelling demand for new stadia, hotels, and improvements and expansion in infrastructure, in line with the kingdom’s Vision 2030 objectives. Meanwhile, ongoing construction of giga-projects such as NEOM and The Line continues at pace to meet ambitious deadlines.
UAE
Strong economic growth of 6.2% will benefit the construction sector.³ Government investment in initiatives such as the Sheikh Zayed Housing Programme, Expo City Dubai and the 2050 Energy Strategy are fuelling growth in infrastructure, tourism, and renewable energy.
Saudi Arabia
Construction activity is set to accelerate with an economic growth forecast of 4.4%, up from 1.4% in 2024.² Opportunities for construction are likely to be focused on infrastructure, hospitality and residential developments. The country’s successful bid to host 2034 FIFA World Cup and Expo 30 in Riyadh is fuelling demand for new stadia, hotels, and improvements and expansion in infrastructure, in line with the kingdom’s Vision 2030 objectives. Meanwhile, ongoing construction of giga-projects such as NEOM and The Line continues at pace to meet ambitious deadlines.
UAE
Strong economic growth of 6.2% will benefit the construction sector.³ Government investment in initiatives such as the Sheikh Zayed Housing Programme, Expo City Dubai and the 2050 Energy Strategy are fuelling growth in infrastructure, tourism, and renewable energy.
Across the region, rising demand will continue to put pressure on already limited availability of skilled labour and key materials, leading to price increases as supply struggles to keep up. Cost escalations of 2-5% in UAE and 5-7% in Saudi Arabia are likely. Specialised materials and skilled labour are expected to see the biggest increases.
Regional conflict adds extra risk, with potential disruption to supply chains. Companies need to be agile and proactive, looking ahead to bottlenecks in supply and labour. It's crucial to build in some budget flexibility to account for higher costs and be prepared for delays.
Construction firms will need to play their part to tackle these issues long-term. For example, investing in local production and more stable supply chains. Similarly, when it comes to labour availability, strategic planning and investment in training will help to reduce project delays and disruption.
