QATAR remains the most expensive country to build in across the Middle East, according to a report released last month by global built asset consultancy EC Harris.

The 2013 International Construction Costs report released last month, which benchmarked building costs in 47 countries, found that relative construction costs across the globe have been affected by substantial fluctuations in currency throughout the year. With Gulf currencies closely tracking the US dollar, the impact of these fluctuations on Gulf countries has been limited.

Qatar and the UAE remain in the top 20 most expensive locations to build according to the annual report, and with inflation running at around five per cent per annum Saudi Arabia has continued to move up the cost curve.

The top 10 most expensive countries to build in are: Hong Kong, Switzerland, Denmark, Sweden, Macau, Australia, Japan, France, Singapore, Belgium. Qatar is ranked 15th, the UAE 20th and Saudi Arabia 21st on the list.

Nick Smith, head of cost and commercial, Middle East at EC Harris, said: “Qatar’s construction market is relatively small and historically has been associated with a steady rate of development, but all of this is about to change with a set of major programmes linked to the 2030 National Plan and the 2022 Qatar World Cup. This includes major elements of social infrastructure, transport and energy infrastructure to support population growth and economic diversification.”

Saudi Arabia is currently in the midst of the delivery of large social infrastructure and economic diversification programmes, including the construction of six new economic cities, the report noted.

The youthful demographic and the size of the country means transport, housing, education and health are a priority, which will drive continuing growth in construction markets, it added.

  Smith added that the year 2013 was seeing “a more broadly based recovery in the Gulf markets”.