Construction supply chains become central to delivering major infrastructure projects amid geopolitical pressures

Construction supply chains are no longer a back-office concern; they are now central to whether major infrastructure schemes are delivered on time, on budget and at the scale governments want. In a commentary for CBNME, Maher Merehbi, chief executive of Arabian Construction Company, argued that geopolitical instability, trade disruption and pressure on key materials are forcing contractors, clients and suppliers to think much earlier about procurement, planning and resilience.

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The case for that shift is strengthened by a string of recent industry warnings. According to an AJG article on construction supply chains in 2026, firms face continuing strain from volatile material prices, tariffs and longer lead times, making predictive planning and early buying more important than ever. Deloitte’s engineering and construction outlook has similarly pointed to the cost impact of tariffs on steel and aluminium, while other industry commentaries have highlighted the wider knock-on effects of freight disruption, labour shortages and geopolitical tension on project timelines and bid prices.

Merehbi’s central argument is that resilience begins long before materials arrive on site. He says sourcing decisions made at design stage can either limit or amplify risk, particularly where components are scarce, imports are slow or logistics routes are fragile. Early engagement with suppliers, selection of locally available materials and advance ordering of high-risk items can all reduce the chance of redesigns, delays and cost escalation later in the programme.

That thinking aligns closely with the GCC’s broader localisation agenda. PwC has argued that localisation efforts in the region should go beyond policy slogans and be embedded in procurement in order to build stronger supplier bases and workforce capability. In Saudi Arabia, the Local Content and Government Procurement Authority is pushing domestic value requirements; in the UAE, Make it in the Emirates is steering more procurement towards local manufacturers; and Oman continues to expand its in-country value framework. Together, these measures are designed not just to diversify economies, but to reduce dependence on fragile international supply chains and strengthen strategic resilience.

Technology is also becoming part of the answer. Merehbi says digital supply chain control towers, AI-led forecasting, BIM integration and real-time logistics visibility can help project teams spot disruption earlier and react before it hits delivery. That view is echoed in other industry analysis, which says data-rich planning, scenario modelling and tighter contract structures, including long-term sourcing agreements and escalation clauses, are increasingly necessary in a market shaped by tariffs, freight pressure and project volatility.

The broader shift, however, is organisational as much as technological. Merehbi argues that construction has to move away from fragmented relationships between clients, consultants, contractors and suppliers, and towards integrated delivery models that encourage demand forecasting, pooled purchasing and stronger collaboration. In his view, the winners in the next phase will be the organisations that treat supply chains as strategic assets, invest in local capability and use digital tools to build a more durable infrastructure ecosystem.

Source: Noah Wire Services