Construction costs in key GCC markets are likely to rise, with a two to five per cent and five to seven per cent jump respectively expected in costs in the UAE and in Saudi Arabia this year, according to a report by Currie & Brown, a world-leading provider of cost management, project management and advisory services.

This is mainly due to rising demand that will add pressure to the limited availability of skilled labour and key materials, it stated in its report ‘Building a resilient future: Adapting to uncertainty in 2025’.

As per the report’s findings, the global construction costs too are set for a jump in 2025 with the growth figure hovering at seven per cent.

According to Currie & Brown, costs will rise across all regions and most markets, driven by a shared set of factors. There will be significant growth and opportunities across the Middle East, driven by government-led investment in infrastructure and nationally important transformative projects.

Despite a levelling off of inflation and the stabilisation of interest rates, growing protectionism, political volatility, and conflicts in various parts of the world make for an unsettled and unpredictable outlook. These factors will continue to put pressure on the cost and supply of materials and labour, it stated.

The report proposes ways in which organisations can act to both better prepare for inevitable unknown headwinds and to exploit future opportunities:

• The industry must adapt and flex, by adopting a more open-minded and collaborative approach.

 •  Taking specific action on several fronts will help alleviate the ongoing shortage in skilled labour.

 • The industry should make use of more granular data to stress-test new projects and radically improve the accuracy of cost analysis.