UAE contractors are absorbing higher building costs amid supply chain changes, Moody's says | The National

Summary:

UAE contractors are absorbing rising building material costs, which have increased by up to 25% due to supply chain disruptions from the Iran war, according to a Moody's report. Major developers are largely protected by fixed-price contracts and pre-locked material prices, allowing them to maintain cash flows and project momentum. While Abu Dhabi and Sharjah show robust demand, Dubai's market has seen a decline in off-plan transactions. Despite challenges, the UAE real estate sector remains resilient, though uncertainties persist, particularly for smaller developers facing execution risks.