Construction cost in Dubai and Doha remains one of the lowest globally, as mentioned by benchmark construction cost index.
The reason for this is mainly that the materials used are generally in a very low price and there is oversupply to the market, so the cost remains low and is much more beneficial for developers.
Ian Williamson, Buildings Global Business Leader stated at the consultancy Arcadis that “For the present, the two big civil Centers of Dubai and Doha are providing a very beneficial field for developers and investors in order to build in a low and advantageous cost”.
So for the near future, the instruction business will continue to grow in a stable pattern for Gulf governments and it’s going to support big projects. As for Dubai it has the Expo 2020 infrastructure which is progressing building. Doha on the other hand, can spend over 150$ billion in the next 10 years, on roads, railways, stadiums and ports, as well as hospitality and social infrastructure. Qatar as well is one of the cities that plans to grow its investments in transport infrastructure and also water and electricity until 2020.
The reduced commodity prices along with the highly competitive Middle East construction market help to create better conditions for building. So it is a good opportunity for the Government but also for the investors and developers too, to take advantage and materialize their ambitions. Of course, having in mind the global recession, it is right to expect that this is going to be another challenging year for the building markets across the world.