Owing to a number of factors, including the widespread adoption of numerous cutting-edge technologies, the Middle East and North Africa (MENA) construction sector has been advancing rapidly over the recent years. The dynamic construction landscape of the region continues to shine as one of the world’s most promising construction hubs.
A report by Global Data indicated that the construction output from the region is expected to increase by 3.3 percent in 2023, highlighting that the region will become one of the top-performing geographies for construction activity in the years to follow.
The significant expansion witnessed in the region’s construction industry is fuelled by several factors, including numerous cutting-edge breakthroughs as well as a number of forward-thinking approaches and strategies.
With the region’s construction industry garnering worldwide attention at present, it is crucial that we thoroughly understand the variety of impressive factors driving it to the forefront of the global construction stage.
Pushing boundaries in construction
Strategic investment and allocation of resources into several innovative construction technologies that offer efficiency and sustainability holds the key to achieving previously unheard-of growth in the industry. An average annual growth rate (AAGR) of more than 3 percent is anticipated in the UAE’s construction industry between 2024 and 2027.
This can be primarily attributed to the increasing investments in construction technologies, real estate and infrastructure sectors, which include residential, commercial, mixed-use, and hotel projects, as well as events, such as the COP28.
Businesses have been found to significantly increase their technology investments in the construction industry at present. Technology has been placed at the heart of construction businesses to achieve enhanced efficiency, with real-world instances illustrating significant gains when switching from 2D to 3D designs.
In addition, subscription-based solutions have made it possible for businesses to be flexible and meet their unique demands while lowering their upfront expenses. In order to achieve simplified and streamlined operations, a strategic approach that entails choosing the appropriate technology providers as partners and ensuring various technologies can successfully communicate with one another, is required. In light of this, it is safe to assume that investments in technology are essential to the sustained prosperity of industries, particularly the construction sector.
Undoubtedly, the bold embrace of technology is what characterises MENA’s prominence within the global construction landscape. The region meticulously recognises the significance of investing in technology as key to succeeding in the present day and age. MENA is transforming the traditional construction scene by seamlessly integrating technologies, including Building Information Modeling (BIM) to Augmented Reality (AR).
For instance, BIM has currently become a fundamental component of project planning and execution. Employment of this cutting-edge technology increases efficiency, reduces human errors, and assists stakeholders in effectively coordinating with partners. In the MENA region, construction companies are utilising BIM techniques more frequently, which improves efficiency and lowers costs.
Harnessing potential of augmented reality in construction
Additionally, another revolutionary approach adopted in the MENA construction landscape is the comprehensive and effective utilisation of Augmented Reality (AR). AR in construction can minimise errors and hasten project completion by enabling engineers, builders, and architects to visualise intricate details before the building process initiates. This technology is considered unique as well as a vital asset in the construction toolkit.
As complexity of construction projects increases, there is a greater demand for efficiency gains and communication advancements. This triggers a paradigm shift in the sector towards adopting cutting-edge technologies, such as AR. The year 2024 will bear witness to many more revolutionary breakthroughs in the industry, thanks to this significant shift.
Shifting towards sustainability
Professionals in the fields of design, engineering, and construction have currently shifted their focus to promoting environmentally friendly and sustainable construction approaches, considering the increasing need and global efforts for preserving our planet.
Prefabricated materials support green and sustainable initiatives while improving efficiency and reducing labour expenses. It is expected that in 2024 and the coming years, more professionals will explore prospects for incorporating this into their production mix, as they continue to recognise its benefits.
The construction boom in the MENA region can be ascribed to the region’s major focus on building various architectural marvels while equally prioritising sustainability. Due to the higher demand for satisfying international standards and addressing environmental issues, the region currently witnesses a significant construction revolution, primarily driven by the need to incorporate eco-friendly construction approaches.
The region places higher significance on green building certifications, such as LEED (Leadership in Energy and Environmental Design) certificates, or its equivalent. In addition to being ecologically conscious, the push for sustainable building aims to provide long-term financial gains through lower energy costs and higher property values.
Currently, the MENA region is making constant efforts to diversify its economy, which strongly influences the growth in its construction sector. Resources are being directed into diversifying the economies by countries, including Saudi Arabia and the UAE, and construction serves as an essential component of this shift.
As a result of this, MENA’s construction industry is experiencing a surge in foreign investments, which is contributing to its continued expansion. Owing to the stability and higher returns that MENA provides, foreign investments in the construction sector are booming, further contributing to the region’s continued prosperity.
With its ambitious growth aspirations and strategic location at the crossroads of Europe, Asia, and Africa, the region appeals to several stakeholders across the globe.
The MENA region is poised to continue to remain one of the most promising construction hubs in the globe in the coming years. It is positioned for long-term growth owing to its dedication to fostering technological innovation, sustainability, and economic diversification.
Currently, the region paces major emphasis on developing a future where sustainability and technology coexist. With its innovative building methods and game-changing projects, the MENA region will continue redefining construction excellence as we move toward 2023 and 2024, inspiring people all over the world in the process.