Global economy faces $1.5trln hit due to mega projects delay
Despite the backdrop of record levels of investment, the ability to deliver on time, on budget and with the promised economic and societal benefits remains exceptional, stated delivery consultants and construction experts Mace in its report titled 'The Future of Major Programme Delivery.'
The new report, which analysed over 5,000 mega and giga-projects and programmes from countries around the globe, has revealed for the first time that 11% are at risk of significant delay or cancellation.
Mace, in the report, looks at different approaches to delivery and suggests actionable solutions centring around more collaborative models, including being more outcomes focused, having a 'one team' approach and sharing risk and reward.
It also suggests taking more time up-front to ensure readiness, defining and agreeing good governance, having a clear scope definition and cost realism.
Mace pointed out that the commissioning of major programmes, whether for energy, high-speed rail, hospitals or homes, schools or flood defences, as the climate changes and as urbanisation continues, has resulted in the number increasing by 280% since 2010, a trend set to continue.
Dominated by the US, with 1,663 projects announced since 2010, and driven by countries such as India (729), Saudi Arabia (577) and the UK (484), data from the report shows programmes are becoming larger, more complex and more expensive.
Driven in part by political support and public investment, the top 10 live global projects looked at have a combined total value of $685 billion.
Mace Consult CEO Davendra Dabasia said: "When large-scale programmes are significantly delayed and go over budget, the focus on the positive impact they have is diluted. When major programmes exist to deliver beneficial outcomes for society, it's a factor that needs to be addressed."
"Many of the issues are systemic, often driven by national politics and policies, and reflect the challenging ecosystem that delivery takes place in," noted Dabasia.
"As major projects and programmes become larger and more complex, delivery models need to be agile to tackle challenges and capitalise on any new opportunities. The solution must rest with more collaborative delivery approaches that prioritise the creation of integrated teams aligned to common goals that seek the same positive outcomes," he added.
Christopher Seymour, Managing Director for Middle East and Africa at Mace Consult, said: "This report arrives at a pivotal moment, with the Middle East and Africa region – particularly the UAE and Saudi Arabia - at the epicentre of a global construction boom."
"Saudi Arabia alone has seen a 643% increase in the number of active megaprojects since 2010, driven by Vision 2030 and landmark programmes like Diriyah, Qiddiya, and King Salman International Airport," stated Seymour.
"The scale and complexity of major programmes like these demands a delivery approach that is collaborative, integrated, and focused on outcomes. It is about building trust, aligning incentives, and creating a one-team culture that empowers people to make the right decisions for the programme or project, not just their organisation," he added.
The Mace report highlights that as projects grow in size and scope so does the risk of delay. With longer timeframes, there is a higher chance of encountering significant external events such as a price shock, war or political upheaval.
This is notwithstanding new digital tools, including AI systems that integrate cost and time overlays, and automation of processes designed to help boost productivity and enhance human capability, it added.
The paper is clear that the challenges faced in delivery are not a reflection of a lack of capability within the supply chain, but issues such high levels of bureaucracy, protracted consents processes and changes in scope and funding that industry must overcome.
This is compounded by optimism bias, incomplete designs and pressure to 'get spades in the ground' without proper planning.
The focus on tackling these challenges and the subsequent impact on cost and schedule continues to detract from the beneficial outcomes of these programmes.
The report highlights that collaborative approaches result in a 4%-13% reduction in cost and a 50% reduction in the risk of projects being delivered late.
With more than 11,000 live mega-programmes and 250 giga-programmes and projects currently in delivery around the globe, and the number growing, proponents of the report hope the focus on these will rest with the value they bring rather than on how they are delivered.- TradeArabia News Service
Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).
LONDON
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
17 minutes ago
- Zawya
Oil steadies on potential Trump-Putin meeting in coming days
Oil prices steadied on Thursday, paring early gains after the Kremlin announced that Russian President Vladimir Putin will meet U.S. President Donald Trump in the coming days, raising expectations for a diplomatic end to the war in Ukraine. Brent crude futures were up 21 cents, or 0.3%, at $67.1 a barrel by 0902 GMT while U.S. West Texas Intermediate crude gained 20 cents, or 0.3%, to $64.55. Both benchmarks slid about 1% on Wednesday, touching their lowest in eight weeks, after comments from Trump on progress in talks with Moscow. Kremlin aide Yuri Ushakov said on Thursday that Trump and Putin will meet in the coming days in what would be the first summit between leaders of the two countries since 2021. A White House official had previously said that Trump could meet Putin as soon as next week, though the U.S. continued preparations to impose secondary sanctions, potentially including China, to pressure Moscow to end the war in Ukraine. Oil is modestly up, benefiting from a crude draw in the U.S., higher Saudi prices for Asia and solid Chinese crude imports in July, said UBS analyst Giovanni Staunovo, adding that gains were curbed by news of the potential Trump-Putin meeting next week. Russia is the world's second-biggest producer of oil behind the United States. The Energy Information Administration said on Wednesday that U.S. crude oil stockpiles fell by 3 million barrels to 423.7 million barrels in the week ended August 1, exceeding an expected decline of 591,000 barrels in a Reuters poll of analysts. In China, crude oil imports in July dipped 5.4% from June but were still up 11.5% year on year, with analysts expecting refining activity to remain firm in the near term. Saudi Arabia, the world's biggest oil exporter, on Wednesday raised its September crude oil prices for Asian buyers, the second monthly rise in a row, on tight supply and robust demand. Global macroeconomic uncertainty capped price gains, however, after the U.S. ordered a fresh set of tariffs on Indian goods. Trump imposed an additional 25% tariff on Indian goods on Wednesday, citing the country's continued imports of Russian oil. The new import tax will take effect on August 28. Trump also said he could announce further tariffs on China.
Zawya
17 minutes ago
- Zawya
Global Health Exhibition 2025: Turning healthcare tech startups into global industry leaders
Saudi Arabia's $1.5B digital health investment powers global startup momentum at Global Health Exhibition 20 finalists from across the world to pitch live in Riyadh—accelerating KSA's regional growth and global reach Riyadh, Saudi Arabia: Held under the patronage of the Ministry of Health and supported by Vision 2030 and the Health Sector Transformation Program, the Global Health Exhibition (GHE), organised by Tahaluf, has announced the return of the NextGen Pitch Competition. Taking place from 27 to 30 October on the Venture Forum stage, this flagship initiative serves as a launchpad for the world's most promising health technology startups and scaleups. By connecting innovators with capital, mentorship, and market access, the competition empowers emerging ventures to evolve into globally recognised industry leaders. Saudi Arabia is rapidly emerging as a powerhouse for startup investment in the region. In the first half of 2025 alone, the Kingdom deployed $860 million in venture capital, marking a 116% increase compared to the same period in 2024 and surpassing the total VC funding for all of last year[1]. This surge has solidified Saudi Arabia's position as the top VC destination in the MENA region, accounting for 56% of all capital deployed and 37% of total deals across the region[2]. These figures underscore the Kingdom's growing influence in shaping the future of health innovation and entrepreneurship. Transforming healthcare access across the Kingdom and beyond Now in its second edition, NextGen plays a pivotal role in advancing GHE's mission to establish Saudi Arabia as a global leader in healthcare innovation and investment. Aligned with Vision 2030 and the Health Sector Transformation Program, NextGen accelerates the adoption of digital health solutions that enhance access, equity, and health outcomes across the Kingdom and beyond. Open to digital health, MedTech, biotech, life sciences, public health, and clinical innovation ventures, the competition particularly welcomes companies advancing health access, equity, and preventative care. Startups from Saudi Arabia and around the world are encouraged to apply, with last year's cohort representing countries from across MENA, Asia, Europe, and North America. The competition will be evaluated by an esteemed panel of industry experts including, but not limited to, Dr. Jochen Hurlebaus, President & Owner of Aluna Healthcare Consulting (Switzerland); Jennifer Lum, Co-Founder & Managing Partner of Biospring Partners (USA); Rana Lonnen, Managing Director at Science Capital (Switzerland); Ibrahim Seksek, CEO of Startupbootcamp (UAE); Varun Turlapati, Managing Director of Chaanakya Capital (USA); and Pilar Fernandez Hermida, Managing Director of i-Expand (UAE), among others, who collectively bring decades of investment and healthcare innovation experience to identify the most promising ventures. A launchpad for growth, investment, and regional scale Participants in the competition will gain exclusive access to one-to-one investor matchmaking, expert mentorship from global industry leaders, and the opportunity to pitch live in front of over 300 investors, including venture capital firms, sovereign wealth funds and family offices. Early confirmed investment organisations include Deerfield, World Bank Group, PIF and ATEM Capital. The winning startup will receive a 100,000 SAR grand prize and a strategic platform to scale their solution across the region. Twenty companies will be shortlisted across two tracks: startups (bootstrapped to seed, under 2 million US dollars raised) and scaleups (Series A and beyond). Each team will deliver a three-minute pitch followed by a five-minute Q&A with the judging panel. Semi-finals will take place on 28 and 29 October, with the final and winner announcement on 30 October. In addition, the Global Health Exhibition is set to feature an Investment Forum (Days 2-4), offering startups and scaleups direct access to Saudi Arabia's dynamic healthcare investment landscape. The forum will provide clarity on regulatory frameworks, facilitate high-impact local partnerships, and connect investors with emerging opportunities. Day 4 will spotlight Procurement, featuring innovative purchasing models, supply chain solutions, and sustainable strategies aligned with Saudi Arabia's green initiatives. Building a track record of success The impact of the NextGen Pitch Competition is already becoming clear. Initially launched to spotlight emerging healthtech ventures, it has grown into a credible platform for early-stage companies to gain visibility, build networks, and accelerate their development. This year, the competition seeks to attract high-potential startups looking to engage with investors, partners, and the wider healthcare innovation ecosystem. Among last year's winners was Xgenome Biotech, a Saudi-founded startup developing next-generation diagnostic kits. Reflecting on the programme's influence, CEO Burhan Fakhurji said: 'Last October we had the honour of taking home first place in GHE's NextGen Pitch Competition. Since then, we have managed to progress that project from prototype stage. We are now in a position where we believe in 3-4 months - by the time of GHE 2025 - we will have our first kit ready. Without the advantage of winning the NextGen Pitch Competition and the trust we got from the onsite investors, we might not be in this exciting position.' Commenting on the competition's return, Rachel Sturgess, Senior Vice President at Tahaluf, said: "Saudi Arabia is rapidly becoming the launchpad for the next generation of healthcare innovation. Through the NextGen Pitch Competition, we are not only showcasing bold ideas but actively enabling their growth. By connecting startups with capital, expertise and access to one of the world's most ambitious healthcare markets, we are helping shape a future where innovation knows no borders." Applications are now open and close on 15 September 2025. Startups and scaleups interested in applying can visit: For more information on this year's programme, visit: About Global Health Exhibition Established in 2018, Global Health Exhibition (GHE) is Saudi Arabia's premier platform for showcasing next-generation healthcare innovation. GHE is organised by Tahaluf, a strategic alliance between Informa PLC, the Saudi Arabian Federation for Cyber Security and Programming (SAFCSP), and the Events Investment Fund (EIF). The event brings together global leaders, investors, and innovators to shape the future of healthcare. Set against the backdrop of Vision 2030, it positions Riyadh as a driving force in global health transformation. GHE spans the entire health ecosystem and welcomed over 105,000 attendees during its 2024 edition. Press & Media Inquiries:Jessica Homan, Tahaluf [1] Saudi Arabia Aggregates $860M of Venture Capital Deployment in H1 2025, Surpassing All of 2024 Funding, and Maintains Its Leading Position in MENA [2] Saudi Arabia Aggregates $860M of Venture Capital Deployment in H1 2025, Surpassing All of 2024 Funding, and Maintains Its Leading Position in MENA
Arabian Post
19 minutes ago
- Arabian Post
Putin's Upcoming Visit to Strengthen Russia-India Ties
Russian President Vladimir Putin will visit India in the coming weeks, with expectations that the trip will significantly bolster bilateral relations across various sectors, including trade, defence, and energy. The visit, anticipated to be a key moment in Russia-India relations, will occur amid shifting geopolitical dynamics, particularly following the global attention on the ongoing war in Ukraine and its implications for international alliances. The timing of the visit is critical, as both Russia and India seek to expand their strategic cooperation. Over the past few years, both nations have deepened their partnership through numerous agreements aimed at enhancing their economic and military ties. As global power dynamics continue to shift, the Russia-India alliance has become increasingly important, not just for the two countries but also within the broader context of the BRICS grouping, of which both nations are founding members. One of the central themes of the visit will be the strengthening of economic ties, especially in the energy sector. With the ongoing energy crisis exacerbated by sanctions on Russia, India has emerged as one of the key buyers of Russian oil. The visit is expected to solidify agreements surrounding the energy trade, including the potential for India to increase its imports of Russian crude oil at discounted rates. This move is likely to provide India with a cost-effective energy source while helping Russia circumvent Western sanctions. ADVERTISEMENT Discussions are expected to focus on further cooperation in defence, where Russia has long been a major supplier of military hardware to India. The two nations are expected to advance negotiations on new defence contracts, including the potential for joint production and technology sharing. The defence ties between Russia and India date back decades, and the visit will likely see the formalisation of further agreements that could further align their military interests. The visit will also involve talks on expanding technological collaboration, particularly in the areas of space and nuclear energy. Both countries have made significant strides in these fields, and there is potential for further joint ventures, which could bring both economic and technological benefits to each nation. Putin's presence in India is expected to reinforce Moscow's commitment to its relationship with New Delhi, signalling Russia's ongoing support for India's strategic ambitions in the global arena. Putin's upcoming visit also comes at a time of heightened global tension. As the war in Ukraine continues to dominate headlines, Russia has increasingly sought to deepen ties with countries that have been less critical of its actions, including India. New Delhi has maintained a relatively neutral stance in the conflict, focusing instead on its national interests and calling for peace talks. This approach has allowed India to strengthen its ties with Russia without facing the same level of international scrutiny as some of the West. The visit is likely to be significant for the future of BRICS, a bloc of emerging economies that includes Brazil, Russia, India, China, and South Africa. The group has been exploring the possibility of expanding its membership, and Putin's visit could serve as a platform for discussing further collaboration within this framework. As BRICS nations continue to challenge the traditional Western-dominated global order, Russia and India are likely to explore ways to enhance their collective influence in international forums. While both nations have shared interests, their relationship has not been without challenges. India's growing economic ties with the West, especially in the technology and trade sectors, have sometimes created friction in its ties with Russia. However, the long-standing nature of their partnership, especially in defence, has ensured that these tensions have remained manageable. Putin's visit is expected to reinforce the idea that despite external pressures, Russia and India will continue to prioritise their strategic interests.
