Case Study: Excess Demand

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27th September 2015
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A shortage in labour is currently one of the biggest challenges facing the Middle East construction industry

In addition to technical skills, soft skills are said to be in increasing demand across the region, and in some cases are seen as being as important among increasingly selective employers. The implications of skills shortages in the GCC are such that project delays and rising costs are becoming a real possibility.

The fact that strong growth in construction is driving diversification from oil means mid-level skills-gaps will need to be filled in countries like Saudi Arabia.

Excess Demand

Increasing labour shortages are causing problems in the Saudi Construction sector.

According to the report produced by Ventures Onsite on industry trends, construction in the Saudi Arabia recorded the highest non-oil GDP growth rate in the region, reaching 6.7% in 2014. It is unlikely, that this level of growth will be sustained as labour shortages become more acute, unless wages rise to reflect the labour shortages.

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