28 September 2026

This Week’s Cost Intelligence

 

Construction costs eased slightly this week. The UAE index closed at 124.26, down 0.46%, and the KSA index closed at 112.94, down 0.50% weekly. Even so, costs in both markets remain well above the baseline, at 24.26% higher in the UAE and 12.94% higher in Saudi Arabia.

 

Most of this week’s easing came from metals. Platinum recorded the largest weekly fall, down 3.15%, while zinc, copper and lead each slipped by around 1.7%. Bitumen was the main exception, rising 0.66% and now standing 80.71% above its January level, which keeps pressure on road and waterproofing work. Polyvinyl moved slightly higher, and cement and ready-mix prices were unchanged in both markets.

 

Shipping costs moved in different directions. Bulk rates softened, with the Baltic Dry Index down 3.85% on a sharp drop in Capesize rates, although Panamax rates rose 6.52%. Container freight was largely unchanged but remains about 9% above its three-month average. For imported items, a realistic freight allowance should still be included in every estimate.

 

On the currency side, the Dirham and Riyal stayed firm on their Dollar peg and gained against most major currencies. The Australian Dollar, Sterling and the Euro weakened the most, which makes materials and equipment from these markets slightly cheaper to buy. The Indian Rupee was the only currency to strengthen, adding a small cost to manpower from India.

 

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Copper, Zinc & Platinum – Prices Easing, Pullback Expected to Settle (▼)

 

Forecast: Copper eased 1.76% to USD 14.48/kg, zinc fell 1.77% to USD 3,861.55 a tonne and platinum dropped 3.15% to USD 1,744.70/oz. Copper is still 15.62% above its January level and zinc is 23.37% higher, so this looks like a pause in a firm trend rather than a turn. The pullback is expected to settle, with prices holding close to current levels this week.

 

 

Action: Use the softer week to place orders for cabling, busbar, galvanising and other MEP packages where quantities are confirmed.

 

Bitumen & HRC – Firm Monthly Trend Likely to Continue (▲)

 

Forecast: Bitumen rose 0.66% to USD 768.09 a tonne and is now 12.15% higher than a month ago. Steel coil (HRC) stands at USD 1,320 a tonne, 10.92% above its late-August level. Both are expected to stay firm into early October, with further gains possible.

 

 

Action: Commit roads, waterproofing, structural steel and decking packages early, especially on fixed-price contracts, rather than leaving them open.

 

Diesel & Plant Costs (UAE) – October Reset Likely to Push Plant Costs Higher (▲)

 

Forecast: The UAE diesel price held at AED 4.30 per litre through September. Firm crude oil prices in recent weeks make an increase likely in the October fuel review. A rise of this kind would feed quickly into plant hire and haulage rates.

 

 

Action: Update rates for earthworks, piling, concrete pumping and haulage in all live estimates and tenders once the October diesel price is confirmed.

 

Local Materials & Energy (KSA) – Stable Conditions Expected (▬)

 

Forecast: Cement at SAR 316.20 a tonne, ready-mix at SAR 228.05/m³, diesel at SAR 1.79 per litre and electricity at SAR 0.32 per kWh all held steady this week. With Aramco reviewing diesel prices once a year, no change is expected in the coming week.

 

 

Action: Budget concrete, earthworks and site running costs at current rates, as the local share of project costs is likely to stay predictable.

 

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Stonehaven analysis

 

This week the dirham and riyal strengthened against seven of the eight tracked currencies, giving buyers a small saving on several imports. The Australian dollar fell the most, down 1.58%, followed by sterling at 1.20% and the euro at 0.87%. The euro now sits about 1.1% below its three-month average, which trims the cost of European lifts, facade systems and specialist MEP equipment. The yen, yuan and Singapore dollar moved only slightly, each easing by around 0.2%.

 

The one exception was the Indian rupee, which firmed by about 0.2%, adding a small cost to Indian-sourced manpower. The yuan remains the currency to watch. Even after this week’s small dip, it is still above its six-month average, so the steel, aluminium, cabling and finishes that UAE and Saudi projects buy from China cost a little more than they did in the spring.

 

The Dollar peg continues to anchor commodity pricing in both markets. Procurement teams can use the firmer dirham and riyal now to place European, UK and Australian orders, and should keep yuan exposure on large Chinese supply contracts under review.

Stonehaven Procurement Strategy Index (SPSI)

 

The SPSI scores procurement risk in one number, built from three inputs:

 

• 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:

 

• 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

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