Uncertainties And Opportunities In The Middle East Construction Sector

Introduction

With the ongoing uncertainty in the Middle East entering its sixth week of conflict, there are understandably concerns across various sectors and the short to medium term outlook. Those sectors most immediately affected include hospitality, tourism, and real estate, though no industry is immune to the impact of recent events. A continuance of the conflict and the ensuing uncertainty could impact other sectors too, including construction, where often the impact of market conditions has a delayed but profound influence on new project awards, client budgets, pricing strategies, and contractual behaviors.

Evolving Market and Short-Term Pain

Under normal circumstances, a spike in oil prices would benefit oil-producing states across the region, but the strangulation of supply has had the opposite effect, which is causing jitters across global markets. Regional security concerns, along with an impaired ability to monetize the current oil supply at record prices, is likely to