RELATED ARTICLES: Construction the most corrupt industry in Arab countries | Qatar to invest $200bn into construction by 2022 | BACS consortium awarded $10bn Riyadh Metro contract Qatar remains the most expensive country to build in the Middle East, and the 15^th most expensive globally, following the release of an EC Harris report. According to the 2013 International Construction Costs Reports, Qatar and the UAE remain in the top 20 most expensive locations to build, while the Kingdom of Saudi Arabia continues to move up the cost curve, with inflation running at approximately five percent per annum. “Qatar’s construction market is relatively small and historically has been associated with a steady rate of development, but all of this is about to change with a set of major programmes linked to the 2030 National Plan and the 2022 Qatar World Cup,” said Nick Smith, head of Cost and Commercial, Middle East at EC Harris. “This investment programme includes major elements of social infrastructure, transport and energy infrastructure to support population growth and economic diversification.” “In previous reports, we have warned of the risk of high rates of inflation resulting from a peak of workload in Qatar from 2016 onwards,” he added. “These programmes have got off to a slow start, so as yet there is little price escalation in the system. This could change as programme procurement accelerates unless steps are taken to further build industry capacity in local and regional markets.” The annual study, which benchmarks building costs in 47 countries, found that relative construction costs around the globe have been affected by substantial currency fluctuations throughout the year. However, with the Gulf currencies closely linked to the US dollar, the impact of these fluctuations remained fairly limited. Saudi Arabia is currently in the midst of the delivery of large social infrastructure and economic diversification programmes, including the construction of six new economic cities. The youthful demographic, the size of the country and the prospect of continuing population growth means transport, housing, education and health are a priority, which will drive continuing growth in construction markets. The UAE has been under a cloud since the crash in 2008, but with GDP growth of over 4% recorded in 2012, the corner may have been turned. Highlights in the current construction market include major transport infrastructure schemes including the Abu Dhabi light rail, the recommencement of a number of stalled residential schemes and the commencement of work on major cultural projects previously cancelled in 2008. “In 2013 we are seeing a more broadly based recovery in the Gulf markets, with a general shift to increased spending on social infrastructure in the wake of the Arab Spring and positive signs emerging that the construction markets in the UAE are set for recovery,” continued Nick Smith. “Preparations for the World Cup in Qatar in 2022 are the most obvious manifestation of accelerated growth, but sustained growth is also expected in Saudi Arabia, which is in the midst of a large social investment programme including the building of six new economic cities.” “The emerging recovery in the UAE is particularly significant. The UAE is one of the Gulf’s larger construction markets and the pipeline of projects is increasingly strong. However if the UAE does stage a recovery, it will be competing with both Saudi Arabia and Qatar for resources,” he warned.   The top ten most expensive countries to build in are: 1.            Hong Kong 2.            Switzerland 3.            Denmark 4.            Sweden 5.            Macau 6.            Australia 7.            Japan 8.            France 9.            Singapore 10.          Belgium 15.          Qatar 20.          UAE 21.          Saudi Arabia