| Work Detail |
The region provides significant opportunities, but companies need to be cautious, says Currie & Brown report Construction costs in the UAE and Saudi Arabia are expected to rise in 2025 amid possibilities of supply chain disruptions and labour shortages, according to a report by Currie & Brown, a cost management, project management and advisory services provider. The average construction costs in the UAE and Saudi Arabia are anticipated to rise by 2-5 percent and 5-7 percent, respectively. The report found that costs will rise across all regions and most markets, driven by economic uncertainty, digital technology revolution and labour shortages. Growing protectionism, political volatility, and conflicts in various parts of the world create an unsettled and unpredictable outlook, putting pressure on the cost and supply of materials and labour. The rapid and inexorable evolution of digital technology in general, and AI in particular, will create greater opportunities but generate intense competition for scarce and specialised materials. In addition, the chronic lack of skilled workers across the construction industry globally is set to intensify in 2025, pushing up the cost of labour, especially in high-growth sectors, such as renewable energy, digital infrastructure, and housing. Doug McGillivray, managing director - Southern Gulf, Currie & Brown, said the region continues to provide significant opportunities for construction, but companies need to be cautious. There are many uncertainties that could impact costs, delays and feasibility, he said, adding robust risk management strategies and flexibility in project planning will help build long-term resilience. |
