The GCC’s construction industry has long been fundamental to its economic expansion – and demand is only set to increase. By 2050 the number of inhabitants across the region is predicted to rise by 50 percent, to incorporate an additional 22 million people. Of these, approximately nine in 10 will live in urban areas.
This rapid rate of urban growth points towards increased demand for regional construction and MEP projects which, in turn, are fuelling regional investment and expanding economic opportunity. The rise of mega projects such as Saudi Arabia’s NEOM and The Red Sea Project is set to drive tourism, further prosperity, and reimagine the possibilities of city life in desert climates.
In 2023 alone, an estimated $110bn worth of construction contracts were awarded throughout the GCC, with Saudi Arabia accounting for more than half the total. However, the near-simultaneous start of several significant, ongoing projects has not only led to an increase in material prices in recent years but also increased demand for workers, both onsite and in regional manufacturing facilities.
This highly competitive environment, coupled with tighter financial constraints, is feeding into a wider ongoing issue which could have significant repercussions for the regional construction industry: Skilled labour shortages.
Even in Saudi Arabia, where construction activity is among the highest in the world, these talent shortages pose a risk to projects. 77 percent of industry professionals have reported shortages in skilled professionals and general labour to keep up with the pace of construction, with unskilled worker competency issues being cited among the challenges.
This skills gap challenge is not unique to the GCC region – in fact, it currently affects almost every country in the world. But, in a region with such a significant investment in commercial, residential, and industrial projects, where does this leave the wider sector?
With limited talent to bridge existing skills gaps, some firms and manufacturers often have no choice but to become more flexible with requirements for new employees – including those who may be underskilled and lack certain training – if they are to avoid project delays.
However, the ramifications of relying on unskilled workers can be significant for all involved – especially when it comes to performance. Let’s take an HVAC system, such as a water heater or an AC unit, as an example. These systems are designed into a project with the expectation that they will perform in a certain way.
However, if unskilled labour is used to install these systems it can negatively affect not only how the system performs on a day-to-day basis, but also the product’s lifespan and its serviceability. And unfortunately, because regional regulations and legislation do not dictate that installers must be qualified to a satisfactory level to install and commission these systems, essential levels of training are not always provided.
When unskilled workers lack the specialised training required to execute tasks and procedures – such as the installation and commissioning of HVAC products – to a high standard, the overall quality of a construction project can be jeopardised. This ultimately costs construction firms further time and money to rectify, as well as their reputation.
But an additional cause for concern comes from the potential danger to unskilled workers. When blue-collar labourers lack previous experience and training, they pose a health and safety risk to both themselves and others on a site or in a manufacturing facility. Without proper training and expertise, workers are more susceptible to accidents and injuries, jeopardising their safety.
This problem is exasperated by the fact that supervisors are often no more educated than their workforce when it comes to HSE standards and management. This not only impacts individual workers but also affects project timelines and budgets due to potential delays and liabilities associated with workplace accidents.
So how do we begin to address skills gaps within the industry? In my experience, the solution comes down to the three ‘Ps’: people, products, and processes.
A safer, more efficient workforce begins with addressing – and bridging – the skills gap within the existing workforce by investing in people. The commitment to training workers and developing their abilities is, of course, a long-term investment.
However, by investing time, and money into ensuring access to training resources and upskilling programmes, companies can improve safety construction quality, and system performance while cultivating a much more resilient and committed workforce moving forward. In addition to this longer-term approach, short-term measures – such as onsite training with industry professionals and accredited manufacturers – can also support the personal development of workers.
A more immediate solution lies in the products used in a given project. By opting for products that are easier and quicker to install, commission, and maintain, these products often leave less room for human error and require installers with less specialised training. While skilled workers remain essential, integrating these solutions can streamline construction processes, improve efficiency, and reduce the need for large numbers of labourers.
However, the importance of investing in a skilled workforce needs to be acknowledged at all levels, by all stakeholders, including governments, contractors, and project owners. It is imperative that the industry as a whole commits to supporting more robust legislation and adhering to the highest hiring standards, to protect the safety, well-being, and development of our workers. I also believe that more can be done to include MEP stakeholders in construction projects from the get-go, to facilitate coordination and planning, ensure smoother project execution, and minimise disruptions due to labour shortages.
As populations – and cities – rise, so does the need for sustainable growth. But that can only be achieved through meaningful investment in workers, providing them with the skills and training to perform their jobs safely and efficiently. Bridging the existing skills gap is not an overnight fix, nor should it be. But by taking a holistic approach to project development, from stakeholder involvement to implementing more upskilling initiatives, we can ensure the long-term sustainability and success of construction and MEP projects across the GCC region.