Nigeria, Iraq Construction Sectors Forecast Growth Amid Challenges

The Nigerian construction industry is projected to face stunted growth, decreasing from 3.6% in 2023 to 1.2% in 2024 due to high inflation, rising interest rates, and increased costs of building materials. Concurrently, Iraq grapples with a severe housing crisis, with a shortfall of at least 2.5 million homes, compounded by inconsistent funding and corruption. Iraqi Prime Minister Mohammed Shia al-Sudani's government is attempting to address this with new housing projects and investments, but challenges persist, particularly in financing due to reliance on oil revenues. The Iraqi construction sector is expected to grow by 5% in real terms in 2024, bolstered by government capital expenditure and public-private investments in various infrastructure projects. In the Middle East, particularly the UAE and Saudi Arabia, construction costs are anticipated to rise by up to 7% in 2025 driven by economic uncertainties and increasing demand. Factors such as geopolitical tensions and labor shortages continue to pressure the construction industry across these regions.