Giga-projects boost investment in the Middle East, but supply chain imbalance remains

The Middle East’s ambitious giga-projects and state-backed developments are driving construction activity across the region. This rapid investment, paired with inflation falls and economic diversification, continues to attract global talent while also impacting supply chain capacity. 

The International construction market survey (ICMS) 2024 report, from global professional services company Turner & Townsend, shows that rising demand, particularly in the Kingdom of Saudi Arabia (KSA), is pushing up construction costs.   

Riyadh is the region’s most expensive city to build in at US$2,593 per m2, as the Saudi capital benefits from accelerated growth. Both domestic and foreign funds are capitalising on state-backed initiatives such as NEOM and the 2030 Vision. At the same time, construction cost inflation in the city is easing from the highs of 7.0 percent seen in 2023, but forecasted to remain high at 5.0 percent through 2024.  

Dream of being part of this transformative phase in KSA? Get in touch at partners@novarabia.com.    

Source: Giga-projects boost investment in the Middle East, but supply chain imbalance remains (zawya.com)