Executive Summary
Global economies are confronting higher inflation in 2022. Global supply-chain disruptions, high commodity prices, higher shipping costs, and supply shortages have led to a spike in prices of construction raw materials globally. Some of the primary raw materials that have observed significant price increases include Structural Steel sections, steel reinforcement, softwood timber for shuttering, copper pipes, and copper cables.
In Middle East, 40% of respondents to a construction survey by Turner & Townsend have highlighted that rise in construction costs is significantly impacting delivery and 60% have stated that skilled labour shortage is impacting delivery. Across GCC, costs of transport increased and imported goods prices have risen due to global supply chain challenges. However, inflation rate has not been as high as in GCC as in other parts of the world.
