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The price of progress
The price of progress

ME Construction

time17-03-2025

  • Business
  • ME Construction

The price of progress

Construction The price of progress By Through innovation, collaboration, and a commitment to long-term value, the Middle East is set to redefine what's possible in construction says AESG's Daniel King The GCC construction sector continues to experience a remarkable boom, with iconic projects redefining skylines and ambitious visions transforming urban landscapes. From its impressive US $177bn value in 2025, it is projected to growth at a remarkably healthy CAGR of 5% over the next five years, exceeding $226bn by the end of the decade. Yet, even in this era of growth, budgets are not infinite. In fact, the need for disciplined cost control is more critical than ever to ensure that the sector's exuberance translates into tangible, sustainable outcomes. Therefore, at this, the start of 2025, cost management is poised to play a pivotal role in shaping the success of construction projects across the Middle East. Here are five trends that will significantly impact this domain: Digital Transformation and Automation Digitalisation is already revolutionising how projects are planned, managed, and executed in the region. Building Information Modelling (BIM), for instance, has seen widespread adoption, enabling stakeholders to visualise projects in their entirety before a single brick is laid. As BIM technology evolves, the integration of artificial intelligence (AI) could soon allow teams to predict cost overruns by analysing historical data and real-time conditions. Cloud-based BIM platforms are further enhancing collaboration among architects, contractors, and project managers by providing instant updates on the cost implications of design decisions. Beyond BIM, digital twins are steadily gaining traction, offering real-time monitoring of construction projects. These virtual replicas allow stakeholders to track performance metrics and costs, enabling timely interventions to prevent budget overruns. Machine learning is also poised to modernise budgeting, with algorithms forecasting requirements based on historical data. Automated reconciliation tools, in turn, could seamlessly track expenditures against planned budgets, reducing manual errors and saving valuable time. Sustainability and Green Building Equally transformative is the region's increasing focus on sustainability. Yes, incorporating green building practices often involves higher upfront costs, as seen in the use of low-carbon concrete or the installation of renewable energy systems. However, as demand for eco-friendly materials grows, economies of scale and technological advancements are starting to drive prices down. Additionally, in hosting two of the last three COP editions, the MENA region has signaled its strong commitment to sustainability. Governments are increasingly offering incentives such as tax breaks and renewable energy subsidies to offset the initial costs of sustainable construction. Simultaneously, investments in green certifications like LEED and BREEAM are also becoming more common. These certifications not only enhance a building's market value but also reduce operational costs, making them an attractive proposition for developers. For example, Dubai's push toward Net Zero buildings by 2050 reflects a broader regional shift towards sustainability, and cost management strategies will have to evolve to align with these goals. Modular and Prefabricated Construction Modular methods are rapidly coming of age in the Middle East. These techniques shift much of the construction process to controlled factory environments, significantly reducing on-site labour costs and inefficiencies. Faster project completion times also mean lower indirect costs, such as reduced site overheads and financing expenses. However, modular construction isn't without its challenges. To fully realise its cost benefits, meticulous planning is required to manage logistics and upfront investments effectively. In fact, if the sprawling factories required to effectively build modular units hope to get the green light, teams of cost management professionals would first have to conduct comprehensive feasibility studies, evaluate long-term return on investment, and ensure alignment with both project budgets and regulatory requirements. These analyses would need to account for site selection, transportation logistics, supply chain reliability, and environmental compliance to justify the substantial initial capital outlay. Collaborative Contracting and Risk Sharing While in the region, contracts have traditionally been characterised by rigid, hierarchical structures, we are starting to see this rapidly change, replaced instead by collaborative contracting models. Of these, approaches such as Integrated Project Delivery (IPD) are helping align the interests of all stakeholders by linking incentives to performance metrics such as budget, schedule, and quality. The transition, however, requires more than just updated contract terms- it demands a cultural shift. The adoption of digital tools like BIM, cloud-based project management platforms, and real-time data-sharing systems is helping to facilitate this change. Contracts are increasingly focusing on outcomes, distributing risks based on measurable results such as project milestones or quality benchmarks. Blockchain technology could further revolutionise this space. Smart contracts offer a level of transparency and automation that reduces disputes and ensures accountability. With the UAE having launched its Blockchain Strategy as far back as 2018, there is already talent available in the market to develop the blockchain-based based solutions that could offer effective risk-sharing mechanisms, creating a more equitable framework for all parties involved. Enhanced Focus on Lifecycle Costing Traditionally, cost management has focused primarily on initial construction expenses. But as the function matures, there is growing recognition of the need to consider the total cost of ownership, including operating, maintenance, and end-of-life expenses. It helps of course that policies and certifications increasingly mandate Life Cycle Cost Analysis (LCCA) to ensure that projects align with sustainability and efficiency goals. Here too, BIM has a role to play as the effective implementation of LCCA relies on advanced digital tools, such as BIM and simulation software, to model and predict lifecycle performance accurately. But software alone isn't sufficient – a mindset shift is also crucial. Developers and clients must move beyond prioritising immediate cost savings to embrace the long-term benefits of higher upfront investments. With careful planning and strategic adoption of these trends, organisations can not only manage costs effectively, but also position themselves as leaders in one of the world's most vibrant construction markets. Through innovation, collaboration, and a commitment to long-term value, the Middle East is set to redefine what's possible in construction. And in this transformative journey, cost management will remain at the heart of turning ambitious visions into enduring realities.

AESG eyes FLS growth in KSA on the back of new regulations
AESG eyes FLS growth in KSA on the back of new regulations

ME Construction

time12-03-2025

  • Business
  • ME Construction

AESG eyes FLS growth in KSA on the back of new regulations

Consultant AESG eyes FLS growth in KSA on the back of new regulations By In preparation for the new regulations, the firm has strengthened its Fire & Life Safety division In preparation for the introduction of updated Saudi Building Code (SBC) and Saudi Fire Code (SFC) regulations in mid-2025, which are being introduced as the Kingdom deepens its focus on fire and life safety (FLS) standards, AESG has strengthened its Fire & Life Safety division. The company says that it has expanded its Saudi-based team with a number of new hires, including fire protection engineers, senior fire protection engineers, and principal fire protection engineers. This strategic expansion enhances the firm's ability to support complex projects with advanced mechanical and electrical fire protection expertise, it said in a statement. 'Saudi Arabia's rapid expansion of mega and giga projects has significantly increased the demand for specialised Fire & Life Safety expertise. These large-scale developments require meticulous and complex fire safety planning, both from a design and regulatory standpoint. The complexity of Saudi projects necessitates both robust local knowledge as well as international expertise to develop equivalencies and alternative solutions, allowing AESG to go beyond standard code compliance and deliver high-value, performance-based fire safety solutions,' said Saeed al Abbar, CEO at AESG. AESG is among the select few Fire & Life Safety firms actively operating in Saudi Arabia and is one of only two International Consultancy firms certified by Civil Defense as an Authority Having Jurisdiction (AHJ) representative and reviewer, reaffirming the firm's deep commitment to Vision 2030, the statement highlighted. In 2024, AESG played a critical role in upgrading fire and life safety codes and systems for some of Saudi Arabia's most iconic developments, including critical infrastructure, healthcare facilities and luxury hospitality projects, the company explained. It is said to have also collaborated with developers on major new projects, ensuring state-of-the-art fire safety systems were integrated at these developments from the outset. Collectively, AESG's efforts have helped safeguard over US $7.99bn worth of built assets in Saudi Arabia. Looking ahead, AESG is set to further expand its Fire & Life Safety division in Saudi Arabia in 2025, the firm said. 'We are strengthening our advisory services in policy, procedures, and governance, leveraging expertise gained from giga-projects. Additionally, we will introduce specialised solutions for industrial projects, further enhancing our service offerings in the Kingdom. Our goal is to grow our team by over 25% while continuing to elevate service quality, client experience, and governance advisory. With the upcoming Saudi Building Code (SBC-201) and Saudi Fire Code (SBC-801) changes, AESG remains committed to guiding clients through compliance with practical, high-impact Fire & Life Safety solutions—designed to be simple, effective, and achievable,' commented Abdullah Faza, Director – Fire and Life Safety, Middle East at AESG. AESG said that it is also expanding its regional footprint in other markets, the firm revealed that it recently established a dedicated Fire & Life Safety team in Cairo and is set to expand its teams in the Asia Pacific market with hires in Sydney and Singapore. The expansion includes the appointment of Samer Mehran as Senior FLS Consultant for the company's Egypt office. With over 15 years of industry experience, Mehran brings deep technical expertise and leadership to support AESG's continued growth across the Middle East.

AESG Targets 25% Growth in Saudi Fire & Life Safety Team Ahead of New Building and Fire Codes - Middle East Business News and Information
AESG Targets 25% Growth in Saudi Fire & Life Safety Team Ahead of New Building and Fire Codes - Middle East Business News and Information

Mid East Info

time11-03-2025

  • Business
  • Mid East Info

AESG Targets 25% Growth in Saudi Fire & Life Safety Team Ahead of New Building and Fire Codes - Middle East Business News and Information

As Saudi Arabia's construction sector continues to expand at an unprecedented pace, the Kingdom is set to reinforce fire and life safety (FLS) standards with the introduction of updated Saudi Building Code (SBC) and Saudi Fire Code (SFC) regulations in mid-2025. In preparation for these changes, AESG has strengthened its Fire & Life Safety division, expanding its Saudi-based team with a number of new hires, including fire protection engineers, senior fire protection engineers, and principal fire protection engineers. This strategic expansion enhances the firm's ability to support complex projects with advanced mechanical and electrical fire protection expertise. AESG is among the select few Fire & Life Safety firms actively operating in Saudi Arabia and is one of only two International Consultancy firms certified by Civil Defense as an Authority Having Jurisdiction (AHJ) representative and reviewer, reaffirming the firm's deep commitment to Vision 2030. 'Saudi Arabia's rapid expansion of mega and giga projects has significantly increased the demand for specialized Fire & Life Safety expertise. These large-scale developments require meticulous and complex fire safety planning, both from a design and regulatory standpoint. The complexity of Saudi projects necessitates both robust local knowledge as well as international expertise to develop equivalencies and alternative solutions, allowing AESG to go beyond standard code compliance and deliver high-value, performance-based fire safety solutions,' said Saeed al Abbar, CEO at AESG. In 2024, AESG played a critical role in upgrading fire and life safety codes and systems for some of Saudi Arabia's most iconic developments, including critical infrastructure, healthcare facilities and luxury hospitality projects. The firm also collaborated with developers on major new projects ensuring state-of-the-art fire safety systems were integrated at these developments from the outset. Collectively, AESG's efforts have helped safeguard over SAR 30 billion worth of built assets in Saudi Arabia. Looking ahead, AESG is set to further expand its Fire & Life Safety division in Saudi Arabia in 2025. 'We are strengthening our advisory services in policy, procedures, and governance, leveraging expertise gained from giga-projects. Additionally, we will introduce specialized solutions for industrial projects, further enhancing our service offerings in the Kingdom. Our goal is to grow our team by over 25% while continuing to elevate service quality, client experience, and governance advisory. With the upcoming Saudi Building Code (SBC-201) and Saudi Fire Code (SBC-801) changes, AESG remains committed to guiding clients through compliance with practical, high-impact Fire & Life Safety solutions—designed to be simple, effective, and achievable' said Abdullah Faza, Director – Fire and Life Safety, Middle East at AESG. Beyond Saudi Arabia, AESG is also expanding its regional footprint, recently establishing a dedicated Fire & Life Safety team in Cairo and is set to expand its teams in the Asia Pacific market with hires in Sydney and Singapore. This expansion includes the appointment of Samer Mehran as Senior FLS Consultant for the company's Egypt office. With over 15 years of industry experience, Mehran brings deep technical expertise and leadership to support AESG's continued growth across the Middle East.

AESG targets 25% growth in Saudi Fire & Life Safety team ahead of new building and fire codes
AESG targets 25% growth in Saudi Fire & Life Safety team ahead of new building and fire codes

Zawya

time11-03-2025

  • Business
  • Zawya

AESG targets 25% growth in Saudi Fire & Life Safety team ahead of new building and fire codes

Dubai, United Arab Emirates – As Saudi Arabia's construction sector continues to expand at an unprecedented pace, the Kingdom is set to reinforce fire and life safety (FLS) standards with the introduction of updated Saudi Building Code (SBC) and Saudi Fire Code (SFC) regulations in mid-2025. In preparation for these changes, AESG has strengthened its Fire & Life Safety division, expanding its Saudi-based team with a number of new hires, including fire protection engineers, senior fire protection engineers, and principal fire protection engineers. This strategic expansion enhances the firm's ability to support complex projects with advanced mechanical and electrical fire protection expertise. AESG is among the select few Fire & Life Safety firms actively operating in Saudi Arabia and is one of only two International Consultancy firms certified by Civil Defense as an Authority Having Jurisdiction (AHJ) representative and reviewer, reaffirming the firm's deep commitment to Vision 2030. 'Saudi Arabia's rapid expansion of mega and giga projects has significantly increased the demand for specialized Fire & Life Safety expertise. These large-scale developments require meticulous and complex fire safety planning, both from a design and regulatory standpoint. The complexity of Saudi projects necessitates both robust local knowledge as well as international expertise to develop equivalencies and alternative solutions, allowing AESG to go beyond standard code compliance and deliver high-value, performance-based fire safety solutions,' said Saeed al Abbar, CEO at AESG. In 2024, AESG played a critical role in upgrading fire and life safety codes and systems for some of Saudi Arabia's most iconic developments, including critical infrastructure, healthcare facilities and luxury hospitality projects. The firm also collaborated with developers on major new projects ensuring state-of-the-art fire safety systems were integrated at these developments from the outset. Collectively, AESG's efforts have helped safeguard over SAR 30 billion worth of built assets in Saudi Arabia. Looking ahead, AESG is set to further expand its Fire & Life Safety division in Saudi Arabia in 2025. 'We are strengthening our advisory services in policy, procedures, and governance, leveraging expertise gained from giga-projects. Additionally, we will introduce specialized solutions for industrial projects, further enhancing our service offerings in the Kingdom. Our goal is to grow our team by over 25% while continuing to elevate service quality, client experience, and governance advisory. With the upcoming Saudi Building Code (SBC-201) and Saudi Fire Code (SBC-801) changes, AESG remains committed to guiding clients through compliance with practical, high-impact Fire & Life Safety solutions—designed to be simple, effective, and achievable' said Abdullah Faza, Director - Fire and Life Safety, Middle East at AESG. Beyond Saudi Arabia, AESG is also expanding its regional footprint, recently establishing a dedicated Fire & Life Safety team in Cairo and is set to expand its teams in the Asia Pacific market with hires in Sydney and Singapore. This expansion includes the appointment of Samer Mehran as Senior FLS Consultant for the company's Egypt office. With over 15 years of industry experience, Mehran brings deep technical expertise and leadership to support AESG's continued growth across the Middle East. -Ends- About AESG AESG is an international Consultancy, Engineering and Advisory firm committed to driving sustainability in the built environment and beyond. With the highest calibre leadership team in our field, we pair technical knowledge with practical experience to provide hands-on, bespoke strategic solutions to our clients. We have one of the largest dedicated specialist consultancy teams working on projects within the building, urban planning, infrastructure and strategic advisory sectors. With decades of cumulative experience, our team offers specialist expertise in sustainable design, sustainable engineering, fire and life safety, façade engineering, commissioning, digital delivery, waste management, environmental consultancy, strategy and advisory, security consultancy, cost management and acoustics. Our prestigious portfolio demonstrates our extensive capabilities and our ability to consistently deliver best in class solutions to some of the industry's most complex technical challenges.

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