Building the future: Priorities for construction sector in Gulf region
Gulf construction firms are at a pivotal moment, driven by the scale, speed, and complexity of growth across the region. As the Gulf races to deliver over $1.5 trillion in transformative projects, firms are being called on to build faster, smarter, and more sustainably than ever before.
A new white paper from Versatile International, 'Construction in 2025: Paving the Way to 2030 and Beyond,' offers a strategic roadmap for the future - defining four clear priorities that construction firms must embrace to remain competitive and future-ready.
The white paper draws on insights from Versatile's inaugural Construction Pulse Survey, conducted by Ipsos, which engaged senior construction professionals across the UAE and Saudi Arabia. While the data highlights key pressures and expectations, the paper's core focus is on actionable strategies to help the sector lead the next phase of growth.
'There's huge ambition in the Gulf right now and the construction sector is right at the centre of it,' said Marco Fahd, Chairman and CEO of Versatile International. 'However, the way we build needs to catch up. The good news is, we're already seeing some of the most ambitious and forward-thinking projects in the world taking shape right here in the Gulf - and that momentum is only growing.'
The four strategic priorities outlined in the white paper are:
1. Embracing AI and automation as essential enablers of efficiency. According to the report, 57% of construction professionals in the UAE and KSA see AI and automation as the most significant trends influencing the sector. In the UAE, this rises to 61%, reflecting a more advanced digital transformation journey. Already, 60% of firms are integrating AI-powered tools into project management processes - though barriers such as inconsistent adoption and high upfront investment remain.
2. Embedding sustainability at every stage of delivery. In the UAE, 72% of surveyed professionals already rank sustainability as a top priority, with 31% doing so in Saudi Arabia - an emerging but rapidly growing focus. More than half of the respondents are prioritising local sourcing to improve supply chain resilience. At the same time, 64% of UAE-based professionals cited regulatory changes as a pressure point as firms work to align with national decarbonisation goals.
3. Reimagining supply chain models for resilience. The report finds that 55% of professionals now prioritise regional supply chains, while nearly half still value international procurement for specialist materials. This trend reflects a move toward hybrid models that balance reliability, quality, and cost.
4. Building future talent pipelines and reducing inefficiency. Rework is now the leading cause of project cost inflation, cited by 57% of respondents. This is often linked to gaps in planning, training, and workforce capabilities. Meanwhile, 42% of firms say they allocate 5–10% of their budgets to rework contingencies. Labor shortages - especially in skilled trades - are a growing concern, with 56% anticipating continued challenges over the next decade. Firms are increasingly turning to automation and skills development to close the gap.
These priorities offer a blueprint for a sector under transformation. They reflect not just challenges to overcome, but opportunities to lead - with data from the Construction Pulse Survey providing the rationale behind each focus area.
The white paper also brings together a diverse range of voices - including developers, architects, engineers, contractors, and consultants - to provide a multi-dimensional view of where the industry stands, and where it's headed.
Versatile International is the Middle East's first fully integrated project management consultancy, specialising in destination-scale real estate development projects. With offices in Dubai and Riyadh, the company provides asset developers with supply chain certainty, risk mitigation, and procurement excellence. Versatile International is part of the Versatile Group, Australia's leading end-to-end real estate development and construction company. – TradeArabia News Service
Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).
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