17 August 2026
This Week’s Cost Intelligence
The index rose in both markets this week. The UAE reading firmed 0.41% to close at 119.39 and the KSA reading firmed 0.44% to close at 110.47. After several mixed weeks the two markets are now moving in the same direction, and both remain well above their September baseline, up 19.39% in the UAE and 10.47% in Saudi Arabia.
The move was broad rather than narrow. In recent weeks the metals had split, with some rising while others fell. This week most of the basket firmed together and only a few materials eased. That signals genuine strength across the cost base, not a single line lifting the average.
Freight is the key watch item. The Baltic Dry Index rose 15.42% and the Capesize segment climbed 31.27% on the week. A lower mill price will not always translate into a lower delivered price, so every imported item should be costed on its landed rate, not the headline figure alone.
Currency had a modest effect. The Dirham and Riyal held their Dollar peg, so Dollar-priced purchases are unaffected. Both eased slightly against most other tracked currencies this week, most notably the Australian Dollar, Sterling and the Euro, which adds a small cost to anything sourced in those currencies.
STONEHAVEN COST INDEX HEADLINE KPIS
SCI Issue 24 · 10 August–17 August 2026
Cost Index 0.00 As of 17 August 2026
Source: Stonehaven Cost Index Issue 24 · 10 August–17 August 2026 · UAE & KSA editions
SCI VS BASELINE — 43-WEEK TREND
Stonehaven Cost Index, weekly. Baseline 01 Sep 2025 = 100.
Source: Stonehaven Cost Index Issue 24 · 10 August–17 August 2026 · UAE & KSA editions
SCI WEEK-ON-WEEK % CHANGE
Weekly movement of the Stonehaven Cost Index — momentum over the last 43 readings.
Source: Stonehaven Cost Index Issue 24 · 10 August–17 August 2026 · UAE & KSA editions
SCI SUB-INDEX TRENDS
Click a tab to view that index — Materials, Labour or Plant.
Source: Stonehaven Cost Index Issue 24 · 10 August–17 August 2026 · UAE & KSA editions
THIS CYCLE'S DRIVER NOTE
Commercial commentary on the cycle's price action from Stonehaven's Managing Director.
Both markets firmed together again this cycle. The UAE SCI closed at 120.16 and the KSA SCI at 111.24, moved by the same basket.
What matters this week is bitumen, not the headline move. It gained 6.56% and now leads the year at 48.51%, putting roads, asphalt and waterproofing on a firmer footing.
For buyers in both markets the position is straightforward: commit bitumen-linked scopes early, take the aluminium dip on facade work, and use the freight correction while it lasts.
Source: Stonehaven Cost Index Issue 24 · 10 August– 23 August 2026 · UAE & KSA editions
MATERIAL MOVEMENT THIS WEEK
Spot prices and % change across weekly, monthly, year-to-date and year-on-year windows. Applies to both UAE and KSA editions.
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Source: Stonehaven Cost Index Issue 24 · 10 August–17 August 2026 · UAE & KSA editions
To view the price fluctuations in detail, please download our latest dataset below.
CUMULATIVE % CHANGE VS BASELINE BY MATERIAL
How far each tracked input has moved since 01 Sep 2025 = 100. Cement and ReadyMix are local series; all other materials are global.
Source: Stonehaven Cost Index Issue 24 · 10 August–17 August 2026 · UAE & KSA editions
MARKET MATERIAL WATCHLIST
Three materials to monitor closely over the coming week.
Source: Stonehaven Cost Index Issue 24 · 10 August–17 August 2026 · UAE & KSA editions
Bitumen – Secure Early (▲)
Forecast: Bitumen enters the week at USD 631.21 a tonne after a 6.56% advance, holding a 48.51% year-to-date lead that is the strongest of any tracked line. Seasonal demand and firm crude-linked feedstock costs point to continued upward pressure into the next week window, with the risk skewed toward further firming rather than a pull-back.
Action: secure near-term call-offs on roads, asphalt and waterproofing packages early in the week, before the trend compounds landed cost.
Aluminium – Narrow Entry Window (▼)
Forecast: Aluminium starts the week at USD 3,259.40 a tonne following a 2.53% correction, though it still holds 7.82% year-to-date. The move reads as consolidation rather than a reversal, and the pull-back is expected to steady rather than extend meaningfully over the coming week, leaving a narrow entry window for facade, cladding and curtain-wall scopes.
Action: price confirmed envelope packages rather than waiting for a deeper correction that the year-to-date position does not support.
HRC & Ferrous Complex – Commit Earlier (▲)
Forecast: HRC opens at USD 1,221 a tonne after a 1.83% gain and sits 29.89% year-to-date, with rebar firmer at USD 447.14 a tonne and CRC flat. The ferrous complex is on a firming footing expected to carry into the coming week, supported by the correction in dry-bulk freight easing landed-cost pressure into mill quotations.
Action: weight structural steel, decking and light-gauge framing packages carrying fixed-price exposure toward earlier commitment.
THIS WEEK'S MARKET MOVERS — WOW %
Material-by-material price movement over the week ending 17 August 2026. Applies to both UAE and KSA editions.
Source: Stonehaven Cost Index Issue 24 · 10 August–17 August 2026 · UAE & KSA editions
AVERAGE SCI FLUCTUATION
VS MATERIAL PRICES
Click a tab to switch material — Oil (Brent), Steel-rebar or Aluminium. Bars show monthly average material price (left axis); line shows Avg. SCI (right axis).
Source: Stonehaven Cost Index Issue 24 · 10 August–17 August 2026 · UAE & KSA editions
Driver of the Cycle – Platinum and the Built Environment
Platinum in the Construction Supply Chain: Uses and Applications
Platinum is not a bulk construction material and does not appear directly in a bill of quantities, but its relevance is real and indirect, sitting inside the manufacturing of several building products. The clearest link is glass and glazing: platinum and platinum-rhodium alloys line the vessels and bushings used in high-quality flat-glass and glass-fibre production, connecting platinum to curtain walling, facade glazing and the fibreglass and mineral-wool insulation used across Gulf commercial and hospitality projects. It also acts as a catalyst in certain construction chemicals and silicones, and is central to the hydrogen economy through fuel cells and electrolysers, an application of growing relevance to district energy and green-hydrogen infrastructure in the region.
Impact of Rising Platinum Prices on Construction in the UAE and KSA
Platinum led the basket this cycle at 7.04% on the week to USD 1,788.90 per troy ounce, a sharp short-term firming against a softer year-to-date position rather than a sustained escalation. Since platinum is not a direct line-item input; any pass-through is second-order, working through the cost of glass, glazing, insulation and specialty chemicals, and arrives with a lag. It matters most on projects with heavy glazed-facade, curtain-wall and high-specification insulation content, which describes much of the commercial, hospitality and giga-project pipeline in both markets. The strategic angle is forward-looking, with platinum on the critical materials list for fuel cells and electrolysers under the region's hydrogen plans. The practical position this cycle is to monitor rather than act: keep platinum on the watchlist for glazing, facade and hydrogen-linked scopes, without changing near-term posture on conventional building packages.
CURRENCY & INFLATION LENS
AED VS KEY TRADING CURRENCIES
UAE Dirham vs key trading currencies, weekly movement and trailing averages.
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Source: Stonehaven Cost Index Issue 24 · 10 August–17 August 2026
AED FX EXPOSURE — WOW % CHANGE
Weekly currency moves against AED across the eight tracked import-pricing pairs.
Source: Stonehaven Cost Index Issue 24 · 10 August–17 August 2026
SAR VS KEY TRADING CURRENCIES
Saudi Riyal vs key trading currencies, weekly movement and trailing averages.
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Source: Stonehaven Cost Index Issue 24 · 10 August–17 August 2026
SAR FX EXPOSURE — WOW % CHANGE
Weekly currency moves against SAR across the eight tracked import-pricing pairs.
Source: Stonehaven Cost Index Issue 24 · 10 August–17 August 2026
Stonehaven analysis
The dirham at 3.673 against the US dollar, and unchanged, the peg keeps the largest share of construction procurement, plant hire and commodity settlement free of currency risk.
Away from the peg, the dirham softened slightly against a handful of crosses this week, leaving those imports marginally dearer. Sterling was the clearest mover, firming 0.42% to 4.954 AED, with the Australian dollar up 0.32% to 2.594 AED, the euro up 0.15% to 4.244 AED and the Chinese yuan up a marginal 0.08% to 0.544 AED. These are small moves, but they leave European-sourced facades, lifts and specialist MEP, and Australian and Chinese supply, fractionally more expensive in dirham terms.
The clearer relief this week sits with the currencies that weakened against the dirham. The Japanese yen was the largest single move, easing 0.83% to 0.023 AED, which opens a genuine window for Japanese-sourced plant and specialist equipment on live packages.The Indian rupee softened 0.31% to 0.039 AED, keeping Indian-sourced materials and labour-linked costs slightly cheaper.
Procurement teams should continue to rely on the peg as the stable base for dirham commitments, use the softer yen and rupee as genuine, if modest, windows on Japanese plant and Indian supply, and keep sterling under review given its steady firming against the dirham over recent months.
GLOBAL INPUTS & FREIGHT BENCHMARKS
Logistics & freight — construction cost multipliers.
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Source: Stonehaven Cost Index Issue 24 · 10 August–17 August 2026 · *Data as of 17 August 2026
FREIGHT & SHIPPING INDICES
Click a tab to view that index — Baltic Dry, Capesize, Panamax or Container. Monthly readings.
Source: Stonehaven Cost Index Issue 24 · 10 August–17 August 2026
Stonehaven Procurement Strategy Index (SPSI)
The SPSI scores procurement risk in one number, built from three inputs:
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Market Volatility (MVEI) – the size of material price moves
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Import & Currency Exposure (ICEI) – the cost effect of currency swings on imports
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Energy & Logistics (ELEI) – the pressure from fuel and freight
Each runs 1 to 4, from calm to high risk. The combined score uses the same scale:
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Below 1.49: Low risk – steady market, minimal movement
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1.5 to 2.24: Mild risk – small moves, light monitoring
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2.25 to 3.24: Moderate risk – clear movement, targeted action
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Above 3.25: High risk – unsettled market, immediate review
Current Position (17 August): SPSI = 1.70 (Mild Risk)
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MVEI = 2 → moderate material price volatility. The basket moved more widely this cycle, with platinum up 7.04% and bitumen up 6.56% at the top, a firming ferrous complex (HRC 1.83%, rebar 1.51%), and aluminium off 2.53% at the base, a broader dispersion than the single-line moves of recent weeks and enough to lift the sub-index into the moderate band.
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ICEI = 1 → low import and currency exposure. The currency basket traded within a narrow range this cycle. The largest single move was the yen at 0.83%, with every other cross inside 0.5% (sterling 0.42%, the Australian dollar 0.32%, the euro 0.15% and the rupee 0.31%), and the Dollar peg unchanged. This keeps pass-through currency risk on imported materials contained.
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ELEI = 2 → moderate energy and logistics exposure. Diesel held flat at AED 3.80/L, leaving the plant index unchanged at 136.61, and the sharp dry-bulk freight correction, led by the Capesize index's 10.09% retreat, eased the logistics line back from last cycle's elevated reading, though the firmer container index keeps it above the low band.
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Methodology of SPSI Calculation:
One weighted score from three sub-indices: Market Volatility (MVEI) at 45%, Import & Currency Exposure (ICEI) at 30%, and Energy & Logistics (ELEI) at 25%. The weighting follows the cost structure of construction: material prices drive the largest weekly swings, currency exposure ranks second, freight and energy third.
This cycle: (MVEI 2 × 0.45) + (ICEI 1 × 0.30) + (ELEI 2 × 0.25) = 1.70 (Mild Risk).
Interpretation:
The composite firmed to 1.70 for the cycle ending 17 August 2026, up from 1.50 on 10 August, moving from the Low Risk band into the Mild Risk band. The increase was driven by a broader materials move, with platinum and bitumen firming at the top and aluminium correcting at the base, partly offset by low currency exposure and easing dry-bulk freight. The net effect is a modest, materials-led firming rather than a broad escalation, with the source of risk rotating from freight toward the materials basket.
Procurement Recommendation
1. Material Procurement: With bitumen and the ferrous complex firming, secure near-term cover on roads, waterproofing, structural steel and decking packages, while the softer aluminium print offers a tactical entry for facade and cladding commitments.
2. Energy & Logistics: Diesel is unchanged at AED 3.80/L, holding the plant index flat at 136.61, and dry-bulk freight has corrected sharply. Use the Capesize and Baltic Dry retreat to lock forward freight rates on imported structural steel and bulk cementitious cargoes before the window narrows, but hold container-linked fit-out cargoes under review given the firmer container index.
Current Position (17 August): SPSI = 1.70 (Mild Risk)
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MVEI = 2 → moderate material price volatility. The basket moved more widely this cycle, with platinum up 7.04% and bitumen up 6.56% at the top, a firming ferrous complex (HRC 1.83%, rebar 1.51%), and aluminium off 2.53% at the base, a broader dispersion than the single-line moves of recent weeks and enough to lift the sub-index into the moderate band.
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ICEI = 1 → low import and currency exposure. The currency basket traded within a narrow range this cycle. The largest single move was the yen at 0.83%, with every other cross inside 0.5% (sterling 0.42%, the Australian dollar 0.32%, the euro 0.15% and the rupee 0.31%), and the Dollar peg unchanged. This keeps pass-through currency risk on imported materials contained.
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ELEI = 2 → moderate energy and logistics exposure. Aramco diesel held flat at SAR 1.79/L and SERA electricity was unchanged at SAR 0.32/kWh, leaving the plant index unchanged at 106.66, while the sharp dry-bulk freight correction, led by the Capesize index's 10.09% retreat, eased the logistics line back from last cycle's elevated reading, though the firmer container index keeps it above the low band.
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Methodology of SPSI Calculation:
One weighted score from three sub-indices: Market Volatility (MVEI) at 45%, Import & Currency Exposure (ICEI) at 30%, and Energy & Logistics (ELEI) at 25%. The weighting follows the cost structure of construction: material prices drive the largest weekly swings, currency exposure ranks second, freight and energy third.
This cycle: (MVEI 2 × 0.45) + (ICEI 1 × 0.30) + (ELEI 2 × 0.25) = 1.70 (Mild Risk).
Interpretation:
The composite firmed to 1.70 for the cycle ending 17 August 2026, up from 1.50 on 10 August, moving from the Low Risk band into the Mild Risk band. Materials and freight rotated: the materials basket broadened, with platinum and bitumen firming and aluminium correcting, while the sharp dry-bulk freight correction eased the logistics line. Currency risk stayed low under the Dollar peg. The net effect is a modest, materials-led firming rather than a broad escalation.
Procurement Recommendation
1. Material Procurement: With bitumen and the ferrous complex firming, secure near-term cover on roads, waterproofing, structural steel and decking packages, while the softer aluminium print offers a tactical entry for facade and cladding commitments.
2. Energy & Logistics: Aramco diesel is fixed at SAR 1.79/L and the SERA tariff is steady, holding the plant index flat at 106.66, and dry-bulk freight has corrected sharply. Use the Capesize and Baltic Dry retreat to lock forward freight rates on imported structural steel and bulk cementitious cargoes before the window narrows, but hold container-linked fit-out cargoes under review given the firmer container index.
3. Labour: The labour index remains at 100.00 under the Kingdom's flat labour model. Maintain existing rate-escalation allowances and prioritise trade availability and specialist lead-in on the critical path.
MATERIALS BASKET COMPOSITION
Hover any wedge for material name and basket share.
Source: Stonehaven Cost Index Issue 16 · 04–11 May 2026
STEEL COMPLEX PRICE TREND
Click a tab to view that input — Rebar, HRC or CRC. Prices in USD per tonne, weekly.
Source: Stonehaven Cost Index Issue 23 · 02 August–10 August 2026
RECOMMENDATIONS FOR MATERIAL PURCHASING
Procurement signal across the construction materials basket — monitor, delay, or buy now.
Source: Stonehaven Cost Index Issue 24 · 10 August–17 August 2026
Commercial Guidance
The one-line read: platinum and bitumen led, dry-bulk freight corrected sharply. Cost risk is rotating out of logistics and into the materials basket.
Platinum led the complex, up 7.04% to USD 1,788.90 per troy ounce, with bitumen firming 6.56% to USD 631.21/t and now 48.51% higher year to date. The ferrous complex moved in step, HRC up 1.83% to USD 1,221/t and rebar up 1.51% to USD 447.14/t, alongside zinc up 1.31% to USD 3,768.80/t. Aluminium corrected 2.53% to USD 3,259.40/t, nickel held flat at USD 16,750/t, and CRC was unchanged at USD 576.01/t for a third week.
Demand across the data-centre, grid, infrastructure and giga-project pipeline stays firm, so the advance reads as a genuine materials move rather than a positioning unwind. Dry-bulk freight corrected sharply, the Baltic Dry down 6.65% to 2,878 points and Capesize down 10.09% to 4,590 points, whilst diesel held flat at AED 3.80/L and SAR 1.79/L. Net logistics is a modest tailwind this cycle, with the container index up 2.41% the one offset.
Copper firmed 0.81% to USD 14.56/kg, which still argues for locking cabling and busbar now, before it compounds. Aluminium and nickel are the two flagged buys this cycle, a tactical window on facade, cladding and specialist alloy scopes. Polyvinyl firmed 1.72% to USD 680.86/t, and the firmer container index is a fresh headwind for fit-out imports.
Secure near-term cover on bitumen-linked roads, waterproofing, structural steel and decking packages, and use the softer aluminium and flat nickel prints as a tactical entry on facade, cladding and confirmed alloy programmes. Freight has turned from headwind to tailwind, so lock forward rates on imported structural steel and bulk cementitious cargoes whilst the Capesize and Baltic Dry retreat holds, and keep container-linked fit-out under review. Diesel is unchanged in both markets, and labour holds at 106.81 in the UAE and 100.00 in the Kingdom.
The cycle turned broad rather than single-driver, with breadth across the basket the defining feature and freight the standout relief after last week's spike. The UAE index closed at 120.16 and the KSA index at 111.24, both firming modestly week-on-week and comfortably above their September 2025 baselines. Domestic energy and labour lines held steady in both markets, so the sharp dry-bulk correction, Capesize down 10.09%, is a genuine tailwind on landed cost heading into the next cycle. Both SPSI readings firm to 1.70, moving from Low Risk into the Mild Risk band, with the source of pressure rotating from freight toward the materials basket whilst currency exposure stays contained.
Source: Stonehaven Cost Index Issue 24 · 10 August–17 August 2026 · UAE & KSA editions
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