The UAE construction market remains resilient, but the conditions for delivering projects are changing, according to a new report from Currie & Brown, a leading provider of cost management, project management and advisory services.
Investment continues at significant scale, driven by population growth, economic diversification and long-term government investment. Activity remains particularly strong in data centres, aviation and transport, hospitality, industrial and logistics, and residential development, it stated.
At the same time, contractors are adapting their pricing to current market conditions. They’re less willing to hold fixed prices for long periods, leading to shorter price guarantees, more conditions on tenders and greater use of fluctuation clauses, said Currie & Brown in its latest UAE Construction Market Overview.
For some materials, including steel, this means prices may now only be held for around 30 days, it added.
The industry expert pointed out that costs are rising in mechanical, electrical and plumbing (MEP), electrical infrastructure, façades, steel and aluminium. Growth in data centre construction is adding further demand for specialist electrical and cooling equipment, it added.
Keeping projects on schedule is becoming more challenging. Shortages in contractor capacity and specialist procurement are increasing the risk of delays. Extension-of-time claims are also becoming more common.
Doug McGillivray, Regional Managing Director, Middle East, at Currie & Brown, said: "The UAE construction market remains strong, with significant investment and a substantial pipeline of projects continuing to drive activity. But the conditions for delivering that pipeline are changing."
"Pricing, procurement and risk are evolving. Clients need to understand where the market is moving and what that means for their projects," noted McGillivray.
"Making informed decisions early, while retaining flexibility as conditions change, will be key to maintaining cost and programme certainty," he added.
Currie & Brown’s latest market data shows how material costs have moved during 2026. Since January, average cement prices have risen by 16%, concrete by 10% and reinforcement steel by 8%, while diesel prices have remained volatile.-TradeArabia News Service
