Kuwait secured the fourth spot among the least risky markets in the region, earning a risk score of 40.75. This ranking reflects the country’s relative economic stability and resilience, positioning it as a low-risk environment for investors compared to other regional markets.
The latest Construction Risk Index report from GlobalData, as cited by MEED magazine, confirms that the UAE and Saudi Arabia continue to be the least risky markets in the region.
The UAE, rated A2 with a risk score of 25.30, is considered a low-risk market. Its 2025 outlook remains strong, driven by booming off-plan property sales, ongoing government infrastructure investments, and a robust pipeline of oil and gas projects.
Saudi Arabia, rated B1 with a risk score of 37.38, falls into the moderate-risk category. While Vision 2030 projects continue to drive the construction sector, challenges are expected in 2025 as the government plans to delay some scheduled projects.
The ongoing reprioritization of projects is impacting market confidence and could negatively affect companies involved in projects that are being scaled back or delayed.
Construction Sector
Other Gulf countries, including Kuwait, Qatar, Bahrain, and Oman, face different levels of risk. Qatar, with a risk score of 39.03, is expected to see a recovery in its construction sector in 2025, driven by investments in liquefied natural gas and renewable energy. However, a decline in new investments in the non-residential building sector remains a challenge.
Egypt’s construction sector, with a risk score of 63.50 and a C2 rating, faces significant challenges due to political instability, economic pressures, market fluctuations, and financial constraints, making it one of the highest-risk environments in the region.
Iraq’s construction sector, with a risk rating of 69.00 and a C2 classification, remains highly risky due to persistent security threats, regional geopolitical tensions, and political instability, posing significant challenges to development and investment.
Despite ongoing investments in reconstruction and infrastructure, Iraq’s construction sector continues to struggle with weak governance, further complicating its high-risk environment.
Headwinds
Global construction risk forecasts for Q4 2025 remain affected by economic challenges, with the average risk score dipping from 49.65 in Q3 2024 to 49.13.
The MENA region’s average construction risk rating stands at 53.25, reflecting a higher-risk environment compared to the global average of 49.13.
Source: Al Qabas
