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Home » Blog » Trump tariffs to drive up UAE, Saudi Arabia construction costs up to 7%: Report
UAE

Trump tariffs to drive up UAE, Saudi Arabia construction costs up to 7%: Report

Aisha Al Habibi
Aisha Al Habibi
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It is forecast that the construction costs in the EAU are in the range of 2.7 to 3.3 percent, while those of Saudi Arabia are expected to be higher, ranging from 3.4 to 7 percent, according to the EAU and Saudi of Stonehaven de Stonehaven.

Stonehaven, however, warned that their figures for increased projected costs can be conservative as the markets react to the losses of global shares and the interruptions of the supply chain, which will be predicted that they will increase for imported materials in the region.

Saudi, Saudi construction cost forecasts

“With more than $ 2.3 billion in active projects in both countries, the CCG region is a heavy length exhibition for international prices of basic products. As key materials such as steel, concrete and aluminum they become more expensive to obtain, the cost of followers,” Shestsssssssssssssssssssssssssss. ” “

Gordon Rodger, managing director of Stonehaven, described the prognosis as a call for attention for the entire industry.

“We face a perfect storm: labor shortage, obsolete processes and inhalation of external pressure such as global commercial tariff

The report said that its inflation figures of projected costs for the CCG, including 2–5 percent for the EAU and 3.4 to 7 percent for Saudi Arabia, can increase even more due to world commercial interruptions.

Stonehaven said that the region also faces serious labor challenges (work represents up to 40 percent of the project costs, and requested automation and adoption of AI to mitigate the challenges.

Modular construction, IA planning and BIM technologies are key to managing costs and project risk, he said.

According to the report, while Dubai is estimated to add 19,700 villas in 2025, Giga projects such as Neom and the Red Sea project are remodeling the Saudi landscape.

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