President Trump's Global Tariff Hike Poised to Drive Up GCC Contruction Costs by as Much as 7%
Stonehaven Report Reveals UAE & KSA Could See 7% Spike In 2025
DUBAI, United Arab Emirates, July 14, 2025 (GLOBE NEWSWIRE) -- The construction industry across the Middle East is bracing for further cost increases following sweeping new trade tariffs announced by Donald Trump this week. Stonehaven’s newly released 2025 UAE & KSA Construction Cost Benchmarking Report already forecasts construction cost hikes of 2.7–3.3% in the UAE and 3.4–7% in Saudi Arabia, but those figures may now be conservative, as markets react to global stock losses and supply chain disruptions which are forecast to Increase the prices for Imported materials in the region.
With over $2.3 trillion in active projects across both countries, the GCC region is heavily exposed to international commodity pricing. As key materials such as steel, concrete, and aluminum become more expensive to source, the cost of construction is expected to surge over the next 18–24 months.
“This is a stark wake-up call for the entire industry,” said Gordon Rodger, Managing Director at Stonehaven. “We’re facing a perfect storm—labour shortages, outdated processes, and increasing external pressures like global trade tariffs. Developers need to act fast to lock in construction costs that align with their feasibility studies, or they risk serious impacts to their bottom line.”
Key Findings from the Report:
Cost Inflation Across the GCC – UAE costs set to rise by 2–5%; Saudi Arabia by 3.4–7%. These figures may rise further due to global trade disruptions.
Labour Challenges – Labour accounts for up to 40% of project costs, underlining the need for automation and AI adoption.
Tech Disruption – Modular construction, AI-powered planning, and BIM technologies are key to managing project costs and risk.
Sustainability as Strategy – Carbon tracking, green certifications, and circular practices are becoming critical.
Mega Projects & Market Growth – Dubai will add 19,700 villas in 2025; giga-projects like NEOM and The Red Sea Project are reshaping the Saudi landscape.
Rodger added, “At Stonehaven, we’re already implementing AI-driven project management, carbon tracking, and Digital Twin technology. The goal isn’t just to survive cost volatility, it’s to lead the industry with resilient, future-ready solutions.”
Download the Full Report - Access detailed data, insights, and recommendations in the full 2025 UAE & KSA Construction Cost Benchmarking Report at Stonehaven.ae.
Media Contact:
Julia Rodger
+971 50 5089004
About Stonehaven
Stonehaven is a leading construction consultancy specialising in cost and project management services. With offices spanning the UAE, Sri Lanka, and the UK, Stonehaven is dedicated to transforming spaces into extraordinary realities. Their team of experts aren’t just technically proficient; they are visionaries who execute unique precision and skill to every project they undertake.
Stonehaven adopts innovative technology and industry best practices to deliver exceptional results. From initial planning to final execution, they are committed to quality, innovation, and sustainability. Their portfolio showcases high-profile projects that demonstrate an ability to deliver the most ambitious visions. With international standards and certifications, they continue to uphold the highest levels of client satisfaction and excellence.
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