UAE developers keep projects on track despite 25% jump in material costs: Moody’s
JEDDAH: UAE developers kept construction projects on track despite a 20 to 25 percent surge in imported material costs, with supply chain disruptions having limited impact, according to Moody’s Ratings.
In a sector in-depth report, the credit rating agency said real estate developers have maintained construction schedules despite significant disruption to shipping routes through the Strait of Hormuz, supported by adequate inventories, diversified supply chains and prudent liquidity management.
The report comes as regional conflict has disrupted shipping routes across the Gulf, raising concerns over project timelines, although the UAE’s property sector has remained resilient.
“Overall, resilience to date has exceeded the expectations of many market observers,” the report said.
