Construction in the Middle East has been increasing lately. Many different structures are being created and developed day by day, especially by leading countries including United Arab Emirates and Saudi Arabia. However, during the past few years there has been an inflation in the overall cost of construction in the Middle East. This has had a great impact on the economy of Saudi Arabia especially which affected many plans the government had.
However, a recent research conducted was able to figure out statistics that proves that this inflation in cost will stop by 2019 and actually the prices are going to get back to normal one more time. This researcher conducted by Turner and Townsend which is a global service company. The results are positive due to the number of investments that are being secured by the country due to the high development activity taking place.
Mainly the numbers are concerned with Riyadh which will see the greatest construction cost inflation compared to the rest of the countries in the Middle East, reaching almost 5% in 2019, which is 0.9% more than the highest ever reached value.
The director and head of real estate, Middle East at Turner & Townsend, Adam Ralph commented on the study saying, “The rallying of oil prices in the short-term has provided fresh impetus and opportunities in the region, but ultimately it is diversification of the economic base away from oil and gas that is set to be the key driver of construction demand across the Middle East in the long term.”