Construction costs are expected to rise in the Middle East this year, increasing by around 4% in Saudi Arabia and 3% in the UAE. Across key sectors, demand remains strong, but delivery conditions are becoming more complex, says a new report.
Construction costs are expected to rise in the Middle East this year, increasing by around 4% in Saudi Arabia and 3% in the UAE. Across key sectors, demand remains strong, but delivery conditions are becoming more complex, says a new report.
Construction costs globally are set to increase by 2.4% in 2026, but growing uncertainty due to the phasing and procurement, is the real challenge to project delivery, said an industry expert. In the Middle East, the costs will rise by 4% in Saudi Arabia driven by reliance on imported and specialist materials and 3% in the UAE.
The Construction Cost Index in Saudi Arabia rose 1% in November 2025 compared with the same month last year, driven by a 1% increase in both residential and non-residential construction costs, according to data released by the General Authority for Statistics (GASTAT).
Data centre developers worldwide are rapidly shifting their focus to the construction of facilities capable of supporting artificial intelligence (AI) workloads – but sector experts are warning that the complex requirements of these new data centres may be outpacing supply chain preparedness.
