The GCC construction market is in a period of significant activity, driven by Vision 2030 in Saudi Arabia, Expo-era momentum in the UAE, and continued investment in Oman's tourism and residential sectors. For clients planning projects, this creates both opportunities and challenges.
This article sets out the key dynamics of the GCC construction market in 2025 and what they mean for clients commissioning architecture and engineering projects in the region.
Contractor Capacity and Lead Times
The most immediate practical consequence of a busy construction market is pressure on contractor capacity. In Muscat and Dubai, good contractors are busy — and the best contractors are very busy. Lead times for tendering and mobilisation are longer than they were three years ago, and clients who are not prepared to move quickly when a good contractor is available may find themselves waiting.
The practical implication for clients is to begin the procurement process earlier than you might expect. If you want to start construction in Q1 2026, you need to have your tender documents ready by mid-2025. This means completing your design and authority approvals by early 2025 — which means starting your design process now.
Material Costs and Supply Chains
Material costs in the GCC have stabilised after the significant increases of 2022–2023, but they remain elevated compared to pre-pandemic levels. Steel, aluminium, and imported stone are all more expensive than they were five years ago, and supply chain disruptions — while less severe than in 2022 — continue to affect lead times for specialist materials.
Clients should budget conservatively and build contingency into their cost plans. A 10–15% contingency on construction costs is appropriate for most residential projects in the current market. Clients who budget to the minimum and leave no contingency are the ones who face difficult decisions mid-construction when costs exceed expectations.
Oman's Residential Market
Oman's residential market is in a period of steady growth, driven by a combination of population growth, rising incomes, and government investment in infrastructure. The Muscat metropolitan area continues to expand, with significant development activity in Al Mouj, Madinat Al Irfan, and the coastal areas south of the city.
The villa market — which represents the majority of The Address's project portfolio — remains strong. Clients are increasingly sophisticated in their expectations, and the gap between well-designed and poorly-designed villas is reflected in both sale prices and rental yields. Investment in good architecture and interior design continues to generate returns.
The UAE and Saudi Arabia
The UAE construction market remains the most active in the region, with significant pipeline in Dubai, Abu Dhabi, and the northern emirates. The post-Expo period has seen a shift from large-scale infrastructure and hospitality projects towards residential and mixed-use development, which is more relevant to The Address's project portfolio.
Saudi Arabia's Vision 2030 programme continues to drive enormous construction activity, particularly in Riyadh and the Red Sea coast. For architecture and engineering consultancies, the Saudi market offers significant opportunities — but also significant challenges in terms of authority requirements, procurement processes, and the pace of decision-making.
What This Means for Your Project
The key message for clients planning projects in the GCC in 2025 is to start early and plan carefully. The market is active, contractors are busy, and the clients who get the best outcomes are the ones who have their design resolved, their approvals in place, and their procurement strategy ready before they need to move.
At The Address, we work with clients from the earliest stages of project planning — helping them understand the timeline, the cost implications, and the procurement strategy before the design process begins. This front-end investment in planning consistently produces better outcomes than starting the design process without a clear understanding of the market context.