01 August 2011

BAHRAIN has been named as the Middle East’s most expensive country to build and appears in the top 20 list of the most expensive countries across the globe, according to the annual International Construction Cost Report by built asset consultancy, EC Harris.

According to the survey, which benchmarks the cost of building in each country against the UK, the price of construction in Bahrain is the same as in the UK, and six per cent higher than in Qatar. Qatar finished in 15th position overall with construction costs higher than larger nations including the US, Russia and China. Bahrain is 12th overall globally.

Nick Smith, regional head of cost and commercial Management in the Middle East, EC Harris said: “With the 2022 Fifa World Cup now confirmed, Qatar could soon emerge as the most expensive place for construction in the Middle East, particularly if there is any misalignment between supply and demand in the short to medium term. This is likely to be a slow burning process though as whilst ambitious programmes of work are being discussed, it will take a while before construction work actually begins.”

The UAE completed the top three of the most expensive countries in the Middle East in which to build, with construction costs deemed to be nine per cent cheaper than in Bahrain and three per cent lower than Qatar. Oman finished in fourth place in the region, and just made it in to the top 20 list with construction costs that were 11 per cent below the baselines figures set by Bahrain and the UK.

Perhaps surprisingly Saudi Arabia emerged as the cheapest country in the Middle East when it comes to construction, finishing 17 places below Oman and in 37th place overall. The figures revealed that it was almost half as expensive to build in Saudi Arabia as in Bahrain whilst the kingdom was 37 per cent and 34 per cent cheaper when compared to Qatar and the UAE.

Smith added: “The Saudi market has traditionally been the most competitive market for contractors, resulting in lower overhead and profit allocations than in the UAE or other GCC countries. Furthermore, the abundance of available raw materials and steel factories also play a significant role in keeping construction costs lower, with the price of key commodities like steel and concrete typically 10 per cent lower than elsewhere across the region.”

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