INTELLIGENCE · GCC
WEEKLY INTELLIGENCE · 2026-W45
Gulf Construction Weekly: Logistics Disruption and Cost Divergence Shape Procurement Windows
This week’s Gulf construction market shows a pattern of moderate cost increases and concentrated logistics risk. Saudi Arabia’s September Construction Cost Index rose 2.2% year-on-year, with equipment rental and timber leading gains in both residential and non-residential sectors. In the UAE, Maersk’s November 6 operational update suspends many bookings through Jebel Ali, Khor Fakkan, and Fujairah, adds a $1,000 per container Strait of Hormuz surcharge, and restricts empty container returns. Qatar’s Ashghal has issued two open tenders covering road and marine works, offering clear participation windows for contractors and suppliers. This issue combines price, logistics, tender, and policy signals to outline actionable procurement and bidding strategies.
Weekly developments with dated reference data. Source dates and observation periods are labelled separately; monthly readings are not weekly changes.
The UAE construction market remains fundamentally resilient, but logistics disruption is changing short-term delivery patterns. Maersk’s November 6 Middle East operational update suspends many landside bookings through Jebel Ali, Khor Fakkan, and Fujairah, and adds a $1,000 per container surcharge for vessels transiting the Strait of Hormuz. Congestion at Khor Fakkan is causing some cargo to be diverted to Jebel Ali or moved via bonded transport from Fujairah, while empty container returns are restricted to Salalah and Jeddah with drop-off charges of $600–$2,175 in the UAE. Meanwhile, Dubai Land Department has upgraded its Ejari service through DubaiNow, integrating tenancy registration, renewal, cancellation, and DEWA security deposit payment into a single digital flow. On costs, Currie & Brown’s Q3 report shows steel price validity shortened to 30 days, with concrete, steel, and cement up 10%, 8%, and 16% respectively since January, and contractors increasingly adding fluctuation clauses. Project owners should lock in critical materials and logistics early to avoid delivery delays.
Saudi Arabia’s Construction Cost Index rose 2.2% year-on-year in September, with the residential sector up 2.1% and non-residential up 2.6%. Equipment rental costs increased 4.1% (residential) and 5.8% (non-residential), making it the main driver; timber and joinery rose 3.5%, and energy prices increased 3.0%. Month-on-month, the index was essentially flat compared to August, indicating cost pressure has stabilized but not receded. On logistics, Maersk has suspended most bookings to Dammam and Jubail, with only Jeddah and King Abdullah Port open for local consignees, and an emergency freight rate of $3,800 per container applies at Jeddah. Projects relying on imported materials should reassess delivery timelines and cost buffers.
Qatar’s Public Works Authority (Ashghal) has two open tenders this week. The first is for the design and construction of the Mekeines to Umm Bab Link Road and Infrastructure, with a tender bond of QAR 12.3 million and a closing date of December 22. The second is for post-contract professional consultancy services for the design and build of a dhow and floating jetty at MIA, with a bond of QAR 133,000 and a closing date of November 22. Document fees are QAR 50,000 and QAR 1,000 respectively. On logistics, Maersk has suspended most bookings to Qatar, accepting only limited cargo via Salalah transshipment, and empty container returns are restricted to Salalah or Jeddah, adding complexity to project material scheduling.
United Arab EmiratesAE
Maersk Middle East Emergency Freight and Surcharges (Updated November 6, 2026)
| Charge Type | Applicable Conditions | Amount (USD/container) |
|---|---|---|
| Strait of Hormuz surcharge | All containers transiting the Strait | 1,000[6] |
| Emergency freight (20' dry) | Iraq, Kuwait, Saudi Dammam/Jubail, Bahrain, Qatar, UAE, Oman (except Salalah) | 1,800 |
| Emergency freight (40' dry) | Same as above | 3,000 |
| Emergency freight (reefer/special/DG) | Same as above | 3,800 |
Charges may be adjusted as the situation evolves; Jeddah has a separate $3,800 emergency freight for local consignees.
Logistics
Maersk suspends many Gulf bookings; Khor Fakkan congestion causes diversions
Maersk’s November 6 update suspends many landside bookings for UAE, Qatar, and Saudi eastern ports, and restricts dangerous goods and out-of-gauge cargo. Maersk original advisories
Khor Fakkan congestion is causing some cargo to be diverted to Jebel Ali or moved via bonded transport from Fujairah; a $1,000 per container surcharge applies for Strait of Hormuz transits. Maersk original advisories
Empty container returns are limited to Salalah and Jeddah; UAE drop-off charges range from $600 to $2,175 per container. Maersk original advisories
- Strait of Hormuz surcharge
- $1,000/container
- UAE empty return charge range
- $600–$2,175/container
Policy
Dubai Land Department upgrades Ejari service, integrating tenancy and DEWA deposit
Dubai Land Department launched an enhanced Ejari service through DubaiNow, allowing tenancy registration, renewal, cancellation, and DEWA security deposit payment in one digital flow. Dubai Land Department News
In Q1 2026, Dubai rental contracts totaled approximately AED 32.2 billion, with 118,385 new contracts and 135,607 renewals. Dubai Land Department News
- Q1 2026 rental contract value
- Approx. AED 32.2 billion
Prices
UAE material costs diverge; steel price validity shortens
Currie & Brown Q3 report shows concrete up 10%, steel 8%, and cement 16% since January, with diesel volatile. Currie & Brown original construction research
Steel price validity has shortened to 30 days; contractors are adding fluctuation clauses, with cost pressure evident in MEP, electrical, façades, steel, and aluminium packages. Currie & Brown original construction research
- Steel price validity
- About 30 days
Saudi ArabiaSA
Saudi Construction Cost Index Year-on-Year Change (September 2026 vs September 2025)
| Sector | YoY Change | Main Drivers |
|---|---|---|
| Residential | +2.1% | Equipment rental +4.1%, timber +3.5%, energy +3.0%[2] |
| Non-residential | +2.6% | Equipment rental +5.8%, labor +2.0%, energy +3.0%[2] |
| General Index | +2.2% | Residential and non-residential combined[2] |
Source: Saudi GASTAT, 2023=100. Month-on-month September vs August was essentially flat.
Prices
Saudi September Construction Cost Index up 2.2% YoY; equipment rental leads
GASTAT data shows September 2026 CCI up 2.2% year-on-year, with residential +2.1% and non-residential +2.6%. Saudi GASTAT Construction Cost Index
Equipment rental costs rose 4.1% (residential) and 5.8% (non-residential); timber and joinery +3.5%; energy +3.0%. Saudi GASTAT Construction Cost Index
- General index YoY
- +2.2%
- Equipment rental YoY (non-residential)
- +5.8%
Logistics
Saudi eastern port bookings suspended; Jeddah emergency freight $3,800
Maersk has suspended most bookings to Dammam and Jubail; only Jeddah and King Abdullah Port are open for local consignees. Maersk original advisories
Jeddah applies a $3,800 emergency freight for local consignees; empty returns limited to Jeddah and Salalah. Maersk original advisories
- Jeddah emergency freight
- $3,800/container
QatarQA
Ashghal Open Tenders Overview (as of November 7, 2026)
| Project | Tender Number | Closing Date | Tender Bond |
|---|---|---|---|
| Mekeines to Umm Bab Link Road and Infrastructure | PWA/GTC/20/2026 | 2026-12-22 | 12,300,000 Q.R.[4] |
| MIA Dhow and Floating Jetty Design-Build Consultancy | PWA/STC/45/2026 | 2026-11-22 | 133,000 Q.R.[5] |
Document fees are QAR 50,000 and QAR 1,000 respectively; details on Ashghal website.
Tenders
Open tenders and bid conditions
Mekeines to Umm Bab Link Road and Infrastructure design and construction, tender PWA/GTC/20/2026, closes December 22, 2026, bond QAR 12.3 million. Ashghal official open tenders
MIA dhow and floating jetty design-build post-contract consultancy, tender PWA/STC/45/2026, closes November 22, 2026, bond QAR 133,000. Ashghal official open tenders
Design and Construction of Mekeines to Umm Bab Link Road and Infrastructure
- Road project bond
- QAR 12,300,000
Post Contract Professional Consultancy Services for the Design and Build of Dhow and the Floating Jetty at MIA
- Marine consultancy bond
- QAR 133,000
Logistics
Qatar port bookings restricted; empty returns limited to Salalah or Jeddah
Maersk has suspended most bookings to Qatar, accepting only limited cargo via Salalah transshipment; empty returns limited to Salalah and Jeddah. Maersk original advisories
- Empty return locations
- Salalah, Jeddah
PROCUREMENT & QUOTATIONS
This week's procurement priorities
Editorial judgment based on the cited facts, not a forecast or commitment.
Lock in steel and equipment rental costs before quotes expire
Saudi equipment rental costs are up 4.1% to 5.8% year-on-year, and UAE steel price validity has shortened to 30 days, with concrete, steel, and cement up 10%, 8%, and 16% since January. For projects entering procurement, include price adjustment mechanisms in tender documents or negotiate longer price locks with suppliers. For equipment-intensive works, consider early framework agreements for rentals to hedge short-term volatility.
Source [2]Source [3]Replan Gulf material logistics around restricted port access
Maersk has suspended many bookings to UAE, Qatar, and Saudi eastern ports, retaining only limited channels like Jeddah and Salalah, with restricted empty returns. Project teams should immediately confirm in-transit cargo status with forwarders and evaluate diversion, bonded transport, or landbridge options and their extra costs. For urgent materials, consider Jeddah with its $3,800 emergency freight or explore alternative carriers and air freight.
Source [6]Qatar road and marine tenders offer clear participation windows
Ashghal’s Mekeines to Umm Bab road project is large, with a tender bond of QAR 12.3 million, suitable for contractor joint ventures with road design and construction capability. The MIA marine consultancy has a lower entry threshold, suitable for specialist consultancies. Interested firms should purchase tender documents promptly, assess qualification requirements and local partnership needs, and allow time for document preparation before deadlines.
Source [4]Source [5]Use Dubai’s Ejari digital upgrade to streamline tenancy administration
Dubai Land Department has integrated Ejari registration, renewal, cancellation, and DEWA security deposit payment through DubaiNow, reducing in-person visits. Construction firms holding leased properties or offices in Dubai can speed up administrative processing and lower compliance costs. This also reflects Dubai’s continued push for digital service integration, which may extend to more construction-related permits.
Source [1]Assess UAE local steel capacity for supply stability
EMSTEEL, the sole producer of sheet piles in the Middle East, operates three facilities in Abu Dhabi and Al Ain with daily output exceeding 270,000 blocks, and reported H1 2026 EBITDA up 74% year-on-year to AED 941 million. For projects requiring sheet piles, structural steel, or high-strength steel, evaluate local suppliers’ delivery capability and price competitiveness to reduce import dependence and logistics risk.
Turn sourcing needs into the next step
Project owners can discuss their requirements with BuildNation to clarify specifications, match products and suppliers, compare quotations and coordinate cross-border procurement. Suppliers can submit a partnership inquiry describing their products, capabilities and project experience for relevant opportunities.
Source [6]
Source register
Original documents and announcements. Publication dates and statistical reference periods are labelled separately; consult each original for its precise basis.
- Original publisher Dubai Land Department News · Dubai Land Department Launches Enhanced Ejari Service through DubaiNow App
- Original publisher Saudi GASTAT Construction Cost Index · Saudi Construction Cost Index - September 2026
- Original publisher Currie & Brown original construction research · UAE construction market outlook 2026 Q3
- Original publisher Ashghal official open tenders · Design and Construction of Mekeines to Umm Bab Link Road and Infrastructure
- Original publisher Ashghal official open tenders · Post Contract Professional Consultancy Services for the Design and Build of Dhow and the Floating Jetty at MIA
- Original publisher Maersk original advisories · Middle East Operational Update 53