Digital opportunity

Few can deny that the GCC construction industry has experienced some major challenges in recent years. Falling oil revenues and the subsequent decline in government spending saw annual construction and transport contract awards decline from a high of US $ 107bn in 2014 to just US $ 40.6bn in 2021, according to data from MEED Projects. Struggling to adapt, many firms were forced to scale down their operations just to survive.

The mood, however, is changing. On the heels of the post- pandemic demand boom and sharp rise in oil and gas prices, the region is experiencing a reversal in its project market fortunes. In 2021, total contract awards across all sectors increased by 38 % year-on-year to US $ 116bn, the highest level in five years. Now, with capital expenditure initiatives such as the Saudi Arabia giga projects programme well under way, the market is arguably more bullish today than it has been at any point over the last half-decade.

This optimism is supported by the ever-growing pipeline of projects. There are just under US $ 2.1tn worth of planned and un-awarded projects in the GCC, MEED Projects data shows.

Indeed, such is the size of the project pipeline that the market may soon find itself struggling to meet the anticipated workload. MEED estimates that the Saudi giga projects programme alone requires more than US $ 300bn worth of construction work to be awarded by 2025.

Faced with such a significant potential ramp up in activity, it is more pressing than ever for companies to focus on delivering their developments as efficiently and sustainably as possible.

This will only be achieved with the use of technologies and software platforms that can

transform the way projects are implemented from the drawing stage to handover.

Recent initiatives reflect this. Aware of the current and future project delivery challenges, the GCC states have designed forward-looking strategies that identify digital transformation and sustainable construction as key enablers of economic development. Strategies such as the Dubai 2040 Urban Master Plan, Tasmu Qatar and the Saudi Vision 2030 highlight their intent to become construction innovators.

Industry stakeholders must therefore position themselves and leverage technologies to increase productivity and collaboration while ensuring visibility and transparency throughout the project cycle.

With efficiency and sustainability core requirements of almost all new development projects, the adoption of construction technology is something that no company can ignore. �

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