Saudi Arabia, UAE to drive Gulf project pipeline despite rising conflict-related costs, reports ADCB
RIYADH: Saudi Arabia and the UAE are expected to lead a fresh wave of Gulf project awards in the second half of 2026 as governments press ahead with major investment plans despite higher shipping, insurance and construction costs linked to the Iran conflict.
A recent report by Abu Dhabi Commercial Bank cited by Asharq Bloomberg says the pipeline of projects awaiting award remains substantial, led by the Arab world’s two largest economies.
Monica Malik, ADCB’s chief economist, said project data for the second quarter showed investment activity had remained resilient despite the conflict’s impact on the region.
“The data continues to indicate a strong willingness to progress with key development plans,” she wrote in the report.
