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UAE and Saudi markets remain region’s least risky for construction

11 March 2025

The UAE and Saudi Arabia remain the two markets in the region with the least risk, according to GlobalData’s latest Construction Risk Index report. 

The UAE, with a risk score of 25.30, is ranked as A2, which indicates a low risk environment. The market in 2025 is supported by a buoyant property market with offplan sales driving the launch of new projects, as well as ongoing government infrastructure spending and a strong pipeline of oil and gas projects.

Saudi Arabia, with a risk score of 37.38, is ranked as B1, indicating a moderate risk environment. The country's construction industry continues to deliver projects for Vision 2030, and while this is positive in terms of workload, the market is expected to face challenges in 2025 due to the government's plan to delay the implementation of scheduled projects.

The reprioritisation is still ongoing, which has impacted confidence and could have negative consequences for companies working on projects that are scaled back or slowed down.

Other GCC countries, including Kuwait, Qatar, Bahrain, and Oman, also face varying degrees of risk. Qatar's construction industry, with a risk score of 39.03, is expected to recover in 2025, supported by investment in Liquefied Natural Gas (LNG) and renewable energy. However, a declining trend in new investment in the non-residential building sector continues to weigh on the industry.

With a risk score of 63.50, Egypt's construction industry is expected to face high risk due to political, economic, market, and financial issues. The country's construction industry is ranked as C2, indicating a high-risk environment.

Globally, the construction risk outlook in Q4 2025 continues to be impacted by economic headwinds. The global average score declined marginally to 49.13 from 49.65 in Q3 2024. The Middle East and North Africa region's average risk score is 53.25, indicating a higher risk environment compared to the global average.

With a risk score of 69.00, Iraq's construction industry continues to face persistent security challenges, regional geopolitical tensions, and political instability. The country's construction industry is ranked as C2, indicating a high-risk environment. Despite investments in reconstruction and infrastructure projects, construction remains hindered by weak governance.

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Colin Foreman

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