KSA Market Overview July 2023
PLANNING FOR A
BETTER FUTURE
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AS GIGA PROJECTS
GAIN MOMENTUM THE
DEMAND FOR LABOUR
INCREASES
Welcome to the latest Kingdom of Saudi Arabia (KSA)
construction market report that forecasts the impact of current
market trends and looks at the opportunities and challenges
aligned with the Kingdom’s 2030 vision. The vision is one of
the world’s largest and ambitious programs, which has been
designed to stimulate and diversify the Kingdom’s economy and
appeal to global visitors.
With $1.2 trillion worth of projects, either underway or in
the pipeline, the demand for products, materials and labour
continues to increase. The remote locations of some of the
giga projects, such as NEOM, add further challenges such as
logistics, supply chain and access to materials and labour, which
could cause significant delays and increased cost.
Scarcity elevates cost, and with labour typically accounting for
40% of project costs, any uplift in this area will have a serious
impact on overall budgets and project viabilities.
This report offers guidance to clients looking to avoid
this scenario. It explores the importance of robust project
management, procurement strategies and continuous, close
control of cost and risk, and the need for professionals to
embrace modern methods of construction and technology to
deliver time and resource efficiencies. It also discusses the need
for a collaborative effort on training from players across the
construction industry. These measures will be critical in realising
better built environments that deliver real value for all.
James Irvine
Senior Director – KSA Country Manager
james.irvine@curriebrown.com
www.curriebrown.com
TRENDS
Trends
Project market drivers​
As KSA looks to become more attractive as a place to live, visit, work,
• Vision 2030 strategic objectives include
invest and do business, there is an increase in demand from every
sector.
As Vision 2030 gains pace and developments open up to residents in
country, as well as vistors, KSA’s ambition and commitment will gain
widespread attention across the world.
Increasing internal, religous and international tourism in line with growing
and more varied hospitality offerings and destinations.
- Ambitious nation: enhanced government effectiveness and
enable social responsibility.
Key KSA statistics
Population
35m
(IMF)
- Thriving economy: grow and diversify the economy and
increase employment.
- Vibrant society: strengthen Islamic and national identity
and offering a fulfilling and healthy life.
• Population growth - The KSA’s growing populace will require a swathe of
Population growth
38m
(IMF) by 2027
new housing stock across the country to meet the anticipated population
expansion over the coming years.
• Creation of new economic sectors which can be the source of employment
• As KSA undertakes diversification away from oil and gas they continue to
increase other means of economic stability.
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BUILDING ASSET COSTS
Building cost
Building type
Riyadh USD / m2
Low
High
Hotel
Budget
1,650
2,050
Mid-market
2,150
2,600
Up-market
2,700
3,350
Resort
3,150
4,150
Low-rise office (shell & core)
1,300
1,650
Mid-rise office (shell & core)
1,500
1,950
High-rise office (shell & core)
1,900
2,500
Fit out-basic
1,000
1,600
Fit out-medium
1,600
1,950
Fit out-high
1,950
2,750
Low-rise
1,200
1,500
Medium-rise
1,450
1,800
High-rise
1,750
2,250
Villas
1,100
3,200
Community
1,450
1,950
Regional mall
1,350
1,900
Large regional mall
2,150
2,700
Primary, secondary, academy
1,350
1,750
Exchange rate to 1 US$
SAR
3.75
Commercial
Residential
Retail
There is a threat that the cost of
projects will grow significantly due to
the rising cost of materials and the
shortage of labour and supply-chain.
Alternative construction
methodologies such as modular
pre-fabrication should be considered
to help fast-track developments.
James Irvine
Senior Director - KSA Country Manager
Schools
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GLOBAL COMMODITY PRICES
Managing Client expectations around inflation contingencies will be critical to project viability and development
models as demand begins to outstrip supply.
World Bank Commodities Price Data (The Pink Sheet)
Quarterly Averages
Commodity
Unit
Jan-Mar
Apr-Jun
Jul-Sep
Oct-Dec
Jan-Mar
2022
2022
2022
2022
2023
Energy
Coal, Australia **
$/mt
243.6
352.3
413.3
370.4
237.6
Coal, South Africa **
$/mt
219.8
291.1
259.6
191.8
151.2
Crude oil, average
$/bbl
96.6
110.1
96.4
85.3
79.0
Crude oil, Brent
$/bbl
99.0
112.7
99.2
88.4
81.4
Crude oil, Dubai
$/bbl
96.5
108.9
98.3
84.6
79.6
Crude oil, WTI
$/bbl
94.5
108.7
91.8
82.9
76.1
Natural gas, Index
2010=100
221.8
251.8
396.8
255.9
125.1
Natural gas, Europe **
$/mmbtu
32.63
31.64
60.16
36.93
16.84
Natural gas, U.S.
$/mmbtu
4.62
7.45
7.93
5.47
2.65
Liquefied natural gas, Japan
$/mmbtu
15.60
16.17
21.28
20.67
18.87
As demand begins to outstrip
supply and inflation starts to
bite, contingency plans are
critical to project viability.
James Irvine
Senior Director – KSA Country Manager
www.curriebrown.com
WORLD BANK COMMODITIES PRICE DATA (THE PINK SHEET)
World Bank Commodities Price Data
Quarterly Averages
Commodity
Unit
Jan-Mar
Apr-Jun
Jul-Sep
Oct-Dec
Jan-Mar
2022
2022
2022
2022
2023
Timber
Logs, Africa
$/cum
393.0
373.1
352.6
357.1
375.6
Logs, S.E. Asia
$/cum
Plywood
¢/sheets
256.2
229.7
215.4
210.7
224.9
469.8
421.3
395.1
386.5
412.6
Sawnwood, Africa
$/cum
643.2
602.6
564.0
562.2
582.1
Sawnwood, S.E. Asia
$/cum
b/
731.6
685.5
641.5
639.4
662.1
Cotton
$/kg
b/
3.02
3.48
2.74
2.22
2.17
Rubber, RSS3
$/kg
Rubber, TSR20 **
$/kg
b/
2.07
2.06
1.62
1.49
1.61
1.77
1.65
1.45
1.30
1.39
Aluminum
$/mt
Copper
$/mt
b/
3,250
2,879
2,355
2,336
2,405
b/
9,985
9,521
7,758
8,025
8,944
Iron ore
Lead
$/dmt
b/
142.5
137.7
105.7
99.2
126.1
$/mt
b/
2,325
2,196
1,976
2,105
2,137
Nickel
$/mt
b/
26,765
28,951
22,104
25,514
26,070
Tin
$/mt
b/
43,242
36,773
23,722
21,604
26,339
Zinc
$/mt
b/
3,237
3,914
3,273
3,012
3,137
b/
Other Raw Materials
Metals and Minerals
Source:
World Bank Commodities Price Data (The Pink
Sheet) May 2023 https://thedocs.worldbank.org/en/
doc/5d903e848db1d1b83e0ec8f744e55570-0350012021/
related/CMO-Pink-Sheet-May-2023.pdf
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KSA COMMODITY PRICES
Cost information on commodity prices as of 30 April 2023. Prices quoted in US$ and SAR.
% Diff.
from
prev.
mo.
Feb-23
Item/Company
$
SAR
% Diff.
from
prev.
mo.
Mar-23
$
SAR
% Diff.
from
prev.
mo.
Apr-23
$
SAR
Concrete (C40)
Supplier A
Supply rate per m³
68.00
255
-25.10%
68.00
255
0.00%
68.00
255
0.00%
Supplier B
Supply rate per m³
74.67
280
-5.36%
74.67
280
0.00%
74.67
280
0.00%
Supplier C
Supply rate per m³
74.67
280
-6.43%
74.67
280
0.00%
74.67
280
0.00%
Supplier D
Supply rate per m³
74.67
280
1.79%
74.67
280
0.00%
74.67
280
0.00%
73
274
-8.40%
73
274
0.00%
73
274
0.00%
0.00%
Average
Steel Reinforcement
Supplier A
Supply rate per ton
760
2,850
0.00%
760
2,850
0.00%
760
2,850
Supplier B
Supply rate per ton
720
2,700
-14.81%
720
2,700
0.00%
720
2,700
0.00%
Supplier C
Supply rate per ton
693
2,600
100.00%
Average
740
2,775
-7.21%
740
2,775
0.00%
724
2,717
-2.15%
Supplier A
Supply rate per bag
3.87
Supplier B
Supply rate per bag
3.47
14.50
0.00%
3.87
14.50
0.00%
3.87
14.50
0.00%
13.00
-15.38%
3.47
13.00
0.00%
3.47
13.00
Supplier C
Supply rate per bag
4.00
0.00%
15.00
0.00%
4.00
15.00
0.00%
4.00
15.00
Supplier D
Supply rate per bag
0.00%
3.60
13.50
-4.94%
Cement
Average
3.78
14.17
-4.71%
3.78
14.17
0.00%
3.73
14.00
-1.19%
Supply rate per litre
0.27
1.00
21.00%
0.29
1.10
9.09%
0.29
1.10
0.00%
Early engagement
and planning is
essential to help
clients deliver key
development on
time and in budget.
Our expertise and
intervention can
reduce risk and
increase a greater
return for clients.
James Irvine
Senior Director – KSA
Country Manager
Diesel Fuel
Supplier A
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UNIT RATES
Item
Unit
$
AED
Unit
$
AED
Concrete blinding, C15
m3
658
175
Gypsum board ceilings
m2
265
71
Concrete, C40
m3
454
121
Suspended ceiling system
m2
316
84
Concrete, C60
m3
499
133
UPVC drainage pipe, 80mm dia
Lm
102
27
Shuttering
m2
122
33
UPVC drainage pipe, 110mm dia
Lm
187
50
Reinforcing bars
Kg
4
1
HDPE rainwater/waste pipe, 80mm
Lm
88
23
Reinforcing mesh
m2
51
14
HDPE rainwater/waste pipe, 110mm
Lm
97
26
Tonne
18,556
4,948
Polybutylene water pipe, 15mm dia
Lm
30
8
Metal deck
m2
2,816
751
Polybutylene water pipe, 25mm dia
Lm
45
12
Waterproofing
m2
111
30
Polybutylene water pipe, 75mm dia
Lm
130
35
Roof insulation
m2
95
25
Copper pipe, 54mm dia
Lm
131
35
Blockwork, solid, 100mm thick
m2
156
42
Copper pipe, 76mm dia
Lm
184
49
Blockwork, solid, 200mm thick
m2
186
50
Copper pipe, 108mm dia
Lm
262
70
Blockwork, hollow, 100mm thick
m2
120
32
Black steel, chilled water pipe, 20mm dia
Lm
8
2
Blockwork, hollow, 200mm thick
m2
180
48
Black steel, chilled water pipe, 50mm dia
Lm
28
7
Lightweight partitions, gypsum board/timber studs, 100mm thick
m2
234
62
Black steel, chilled water pipe, 65mm dia
Lm
42
11
Lightweight partitions, gypsum board/timber studs, 150mm thick
m2
265
71
Carbon steel chilled water pipe, 40mm dia
Lm
310
83
Lightweight partitions, gypsum board/timber studs, 200mm thick
m2
314
84
Carbon steel chilled water pipe, 65mm dia
Lm
394
105
Glazed partitions
m2
2,391
638
Carbon steel chilled water pipe, 80mm dia
Lm
454
121
Aluminium/glazing, stick system
m2
2,909
776
Ductwork, gauge 22
kg
20
5
Aluminium/glazing, unitised
m2
3,491
931
Ductwork, gauge 26
kg
25
7
Aluminium louvers
m2
906
242
Cable, 2x4C 240mm2 XLPE/LSF/SWA/Cu + 2x1C 120mm2 LSF/Cu G/Y
Lm
760
203
Aluminium mashrabiya
m2
3,400
907
Cable, 4C 240mm2 XLPE/LSF/SWA/Cu + 1C 120mm2 LSF/Cu G/Y
Lm
380
101
Standing seam roof system
m2
1,500
400
Cable, 2C 16mm2 XLPE/LSF/SWA/Cu + 1C 16mm2 LSF/Cu G/Y
Lm
16
4
EIFS cladding system
m2
550
147
Cable (fire rated), 3x4C 240mm2 XLPE/LSF/SWA/Cu + 3x1C 120mm2 LSF/Cu G/Y
Lm
1,200
320
Plaster finish
m2
61
16
Cable (fire rated), 2x4C 240mm2 XLPE/LSF/SWA/Cu + 2x1C 120mm2 LSF/Cu G/Y
Lm
800
213
Paint finish
m2
86
23
Cable (fire rated), 4C 240mm2 XLPE/LSF/SWA/Cu + 1C 120mm2 LSF/Cu G/Y
Lm
400
107
Sand/cement screeds
m2
68
18
External wall insulation
m2
111
30
External wall waterproofing
m2
111
30
Epoxy coatings
m2
132
35
Structural steel
Item
Exchange rate to 1 US$
Reducing carbon emissions can be achieved through careful consideration of the whole
life project, through multi disciplinary teams armed with sophisticated tools to measure
and manage decarbonisation projects.
SAR 3.75
James Irvine
Senior Director - KSA Country Manager
www.curriebrown.com
TPI AND CONSTRUCTION INFLATION
While tender price inflation (TPI) is yet to experience a substantial
rise, given the ambitions of Vision 2030 we could anticipate a further
increase, with the large number of giga and mega-projects due to reach
peak during years 2024 – 2027.
With much-anticipated projects yet to reach peak demand for labour and
material, major contract awards – which ultimately drive TPI – have been
scarce as many schemes remain in the enabling works stage, if not
delayed in feasibility and planning activities. While there is an abundance
of construction activity ongoing throughout the country, as it stands the
Kingdom’s contracting market is largely meeting demand.
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HERE’S OUR THREE STEP GUIDE TO MAKING SURE
YOU DELIVER PROJECTS ON TIME AND IN BUDGET
Plan early, think differently
Accelerate use of tech innovation
to drive sustainability
Pro-Active measures to meet
the Kingdom’s ambitions
• Involve experts at an early stage to develop robust time and cost
•S
ustainability is critical, harness new technology and innovation to
The volume of projects to be awarded will likely suppress competition
forecasts for the entire project. Well informed early decision-making
reduce carbon and improve efficiencies. Carbon reductions help make
given the surplus of options in the market, therefore innovative,
about feasibility will create efficiencies in both time and budget, which
projects more attractive to investment and ensures they are more
unconventional, and flexible procurement methods will be required to
will ultimately have a huge impact on successful delivery and return on
likely to be prioritised. Building in sustainability from the very start and
ensure capable contractors and consultants remain motivated to tender.
investment.
making use of new technologies will make the project more both viable
• Earlier, multi-project procurement planning will ensure more robust,
cost-effective supply chains and use of skills and labour across the
and influential.
• Incorporation of Lifecycle Costing principles and procedures at the
entire project. Bringing together different projects will not only ensure
outset of the design process will encourage the uptake and use
greater economies of scale, but systematically improve the resource of
of modern methods of construction and technologies which will in
materials and labour.
turn provide better development viability in reduced operational &
Harnessing local talent and providing training, incentivisation and
mentoring throughout their career will be a key aspect to sustaining long
term business plans.
maintenance liabilities, increasing longer term investment returns and
drive best value.
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CONTACT US
Contact our experts for more information
James Irvine
Daniel King
Norman Smith
James McCombe
Mike Moore
Jonathan Hall
Senior Director –
Director – Cost Management
Director - KSA Project
Director -
Director - Facilities
Director -
KSA Lead
Lead KSA
Management Services Lead
Cost Management
Management Services Lead
Project Management
james.irvine@curriebrown.com
daniel.king@curriebrown.com
norman.smith@curriebrown.com
james.mccombe@curriebrown.com
mike.moore@curriebrown.com
jonathan.hall@curriebrown.com
OFFICE ADDRESSES
Verdun Building – Unit 215
Office 305-306, 3rd Floor
7775 King Fahd Road
Al Olaya District
PO Box 12212
Riyadh
Kingdom of Saudi Arabia
Tel: +966 11 455 0533
Currie & Brown is a world-leading provider of cost management, project management and advisory services, covering the full range
of public and private sectors. Our purpose is to add value that makes building a better future possible. We help clients navigate
volatility and unpredictability, providing the certainty that enables better, more sustainable built environments for all. Our services
reflect the complexity of physical assets’ uses and integrated lifecycles, addressing every aspect, from concept, design and
construction, to the assessment of best-value options for ongoing use, maintenance, operation and eventually deconstruction.
With principal offices in London, Dubai, Hong Kong, Mumbai, New York and Shanghai, we operate across 69 offices throughout the
Americas, Asia Pacific, Europe, India and the Middle East.
Currie & Brown has been a Dar Group company since 2012.
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LOCATION INTELLIGENCE
Our comparative cost indices review current material and labour prices in Saudi Arabia.We base this
index on market saturation, labour rates, commodity pricing and current economic conditions.
REPORT METHODOLOGY
Disclaimer: These are indicative building costs that will change depending upon scale, design,
specification, procurement route, contract route, inflation and other factors. The information provided
is for general informational purposes only and is not intended as legal, financial or professional
advice. The user should not rely on the information provided as a substitute for obtaining professional
advice from a qualified professional. The user bears sole responsibility for their own actions and
decisions based on the information provided. We shall not be liable for any damages or losses
resulting from the use of the information provided herein.
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