CONSTRUCTION MARKET INSIGHTS: APAC AND THE GCC

Industry trends and supply chain dynamics

June 2026

CONSTRUCTION MARKET INSIGHTS: APAC AND THE GCC

Industry trends and supply chain dynamics

June 2026

John Butler Managing Director - APAC and GCC

Across APAC and the GCC, demand remains strong, but certainty in delivery now depends on how well we manage labour, supply chains and power constraints. Those who build strategic partnerships, engage early and plan with precision, will be best placed to deliver at scale.

APAC and the GCC remain among the strongest growth regions for construction, with countries such as India and Malaysia expected to witness a growth of more than 6% in 2026. Growth is supported by investment in digital infrastructure, advanced manufacturing, energy, transport, and major public programmes. Across both regions, delivery risk is rising as market conditions are increasingly shaped by execution constraints rather than demand.

Labour shortages, limited specialist capacity, tighter power and utility availability, as well as longer procurement timelines, are placing greater pressure on cost certainty, programme performance, and project viability. Geopolitical disruption is amplifying these risks. Earlier planning, more disciplined procurement, and careful contractor selection is becoming increasingly important.

On a macro level, APAC entered 2026 from a position of relative strength, but higher oil and gas prices are weakening the outlook. The GCC macro-outlook is impacted by higher energy costs and geopolitical disruption, but fiscal buffers, diversification strategies and infrastructure investment support resilience.

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Construction delivery risk is rising across both regions, due to labour shortages, power constraints, limited specialist contractor capacity, and longer procurement timelines.

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Supply chain is becoming an earlier strategic consideration, as long equipment lead times, cost volatility, and geopolitical disruption affect project viability.

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Across commodities, cost pressure is increasing, driven by higher energy prices, geopolitical disruption, and logistics volatility.

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