First appeared on Construction Week
Capital projects are critical undertakings that shape economies, infrastructure, and industries. In the Middle East, the capital projects market has entered a transformative era - driven by a sharper focus on performance, accountability, and increased private sector involvement. Landmark events and commitments, such as Saudi Arabia’s FIFA World Cup 2034, Expo 2030 Riyadh, the Dubai 2040 Urban Master Plan and national net-zero targets are propelling the sector forward, as governments shift from vision to execution.
In Abu Dhabi, US$12.8bn worth of infrastructure projects are set to be awarded to the private sector in the second half of 2025, spanning schools, housing, roads, and other essential services.1 Qatar’s Public Works Authority (Ashghal) has also launched its most ambitious development programme to date - US$22.2bn plan from 2025 to 2029, focused on transforming national infrastructure across transportation, utilities and urban development.2
Saudi Arabia, meanwhile, is accelerating a pipeline of giga-projects such as, Diriyah, King Salman Park, New Murabba, King Salman International Airport, Soudah Peaks, Qiddiya and the Riyadh Sports Boulevard, designed to reshape its urban landscape and cement its position as a leading global economic force.3
This transformation in the capital projects market is further echoed by PwC’s 2025 CP&I Survey findings – based on insights from more than 100 specialists across the region – where 75% of respondents expect capital and infrastructure spending to rise. This strong sentiment reflects confidence in the sector and signals a renewed wave of investment.
Yet many projects still fall short of their execution goals or fail to deliver the intended benefits. Giga projects – vast, high-stakes undertakings – amplify both the opportunities and the risks. Their sheer scale brings greater complexity, capital intensity and public scrutiny. While they can reshape industries and communities, they are also more exposed to challenges such as budget overruns, delays, stakeholder misalignment and operational inefficiencies. Increasingly, the focus is on de-risking budgets early in the planning process to prevent costly setbacks later.
Understanding why projects fall short and identifying strategies to overcome these obstacles is crucial for success. This article looks at budgeting in capital projects, exploring early-stage budgeting techniques, factors contributing to cost variability throughout the development lifecycle and ways to improve budgeting certainty.
Navigating uncertainty with strategic roadmap for capex budgeting
