Digital maturity in Middle Eastern construction

Major shifts and digital advancements

In an ongoing effort to surpass the sector's current conventional practices, digital technology and advancements have been progressively integrated into the construction industry over the past two decades.

According to RICS’ latest digitalisation in construction report the top three areas where digital technologies see the most reported usage are:

enhancing progress monitoring and health, safety and well-being
cost estimation, prediction, planning and control
incorporating environmental, social and governance principles.

Technology adoption in Middle Eastern construction

In the Middle East, technology is transforming the way things are constructed. Although the rate of adoption may be slower than in other regions across the globe, the exponential growth of technology-driven innovation is inevitable. The wealth of new systems that are entering the market provide the full construction value-chain with substantial benefits.

The digitisation of the construction industry has emerged as a key pillar to leverage future growth in the region, with GCC countries endeavouring to diversify their economies and advance infrastructure through the implementation of several long-term initiatives, such as the Dubai 2040 Urban Master Plan and Saudi Vision 2030. An increase in the implementation of state-of-the-art technologies will facilitate the acceleration of these endeavours.

Our survey findings showed a diverse range of perspectives regarding the level of digitalisation within the Middle East construction sector. The level of digitalisation varies across countries and projects and lacks uniformity across the region. Factors including governmental policies, economic circumstances and the magnitude of construction ventures in progress wield significant influence over the trajectory of digital transformation and investment in construction digitisation.

Survey findings

of respondents felt the Middle East is on par with other regions when it comes to the digitalisation of its construction sector.

of respondents felt the region was behind other regions.

of respondents expressed that they felt the region was leading the way when it came to digitalisation in construction.

The remaining respondents said they were unsure of where the Middle East was in comparison to other regions.

Key drivers of digital transformation in Middle East construction

A key driver propelling digital transformation in construction is the pursuit of heightened project efficiency, surpassing other factors such as amplified collaboration, competitive edge and potential cost savings.

Amongst the respondents whose businesses have implemented a digital strategy, 72 percent of respondents attested to their digital strategy’s efficacy in keeping projects aligned with timelines and milestones. Fifty-two percent of respondents affirmed that such a strategy has contributed to accruing enduring value. However, a relatively low percentage of respondents reported cost reductions directly attributable to the implementation of a digital strategy. This discrepancy might be attributed to the fact that digital rollouts frequently entail associated technology expenses, which are not routinely scrutinised or weighed against the efficiencies gained. It is evident that respondents feel the limited financial return in the short term is a barrier to investing in new technology.

“The Middle Eastern construction industry's greatest technological adoption driver will be the region's effort to establish a digital economy, all industries will have to align to the overarching governmental digital ambitions.”

Kaarin Kalavus-Collins

Director, Digital, UAE

Survey findings

of survey respondents said ‘improved project efficiency’ was a key driver motivating the adoption of digital technologies in the Middle East construction sector.

of respondents identified ‘enhanced collaboration’ as one of the key drivers motivating the adoption of digital technologies, 60 percent noted ‘cost reduction,’ 57.5 percent noted ‘competitive advantage,’ and 35 percent identified ‘regulatory compliance.’

of respondents said they expect (56 percent thought it very likely and 35 percent thought it somewhat likely) that digital transformation will result in cost savings within the construction sector in the long term.

Digitalisation of project management

The construction industry is undergoing significant changes in project management, using digital tools to improve efficiency, diminish risk and reduce delays. Innovative technologies like building information modelling (BIM), connected construction, digital twins, robotics and artificial intelligence (AI) are crucial for accurate and timely completion. Data-informed decision-making, resource allocation and risk management techniques are also being incorporated. The digital revolution also facilitates long-distance teamwork and a more integrated approach, enhancing communication, transparency and collaboration.

“Digital project management tools are crucial in modern construction project management due to their ability to inform data-led decision-making, assurance around cost, time and quality parameters & ultimately increased productivity.”

Hudson Fountain

Director, Head of Project Management, UAE

Survey findings:

of respondents agreed or strongly agreed that BIM and collaborative tools are essential for effective project management, suggesting widespread recognition of the value of these tools.

of respondents expressed disagreement as to the essential need for BIM and collaborative tools for effective project management.

of respondents remained neutral on the issue. This group may require further information to form a definitive stance on the topic.

Supporting sustainability efforts and practices

Digital construction has multiple sustainable benefits, these include:

Reducing waste through implementation of technologies like 3D printing.
Optimising the construction process: Innovative digital tools empower construction firms to enhance the efficiency and environmental sustainability of both the completed structure and the implementation of projects.
Connecting life-cycle phases: Digitalisation can facilitate coordinated efforts to enhance efficiency and transmit knowledge between phases of construction.

“In the United Arab Emirates (UAE), companies have embraced the idea of sustainability in their construction methods, using environmentally friendly materials and techniques that promote energy efficiency and earth-friendliness. This trend towards sustainable practices aligns with the UAE's pledge to achieve net-zero status by 2050, as demonstrated through its Clean Energy Strategy.”

Lindsey Malcom

Sustainability Lead, Middle East

Strengthening safety on projects

Technological advancements in the construction industry have significantly improved safety measures. Digital safety management systems are ensuring uniform compliance, streamlining audits and facilitating efficient corrective actions, thereby enhancing awareness and facilitating timely resolution of safety concerns.

IoT and construction safety

Internet of Things (IoT) devices are hardware devices, such as sensors, gadgets, appliances and other machines, which collect and exchange data over the Internet. IoT devices and the integration of such devices, along with other wearable technologies such as smart hard hats, construction smart watches, exoskeletons, smart glasses and smart boots, have provided a technological boost to construction safety. These technologically advanced tools constantly monitor worker conditions, sound alarms at potential hazards and advance on-site safety standards.

Transforming the supply chain

Post-COVID-19, supply chain disruptions continued to cause setbacks and delays to construction projects. The industry recognised the need for digital transformation, which is now revolutionising procurement and supply chain management. Digitalisation promises to make the supply chain more agile, transparent, responsive, cost-effective and efficient, eliminating material sourcing delays.

Digital supply chain solutions, characterised by automation and integration, will revolutionise the construction industry by increasing productivity and decreasing expenses.

In addition, the utilisation of AI and machine learning in construction projects is progressively shaping the future of the industry, as automated and algorithmic decision-making becomes more prevalent.

“A digital supply chain can facilitate connections throughout the ecosystem and value chain, utilising and standardising data from a variety of sources to generate transparency, enable proactive planning and anticipate and mitigate future issues.”

Georgina Bishop

Associate Director, UAE and Digital Transformation Lead, Middle East

Embracing construction’s digital opportunity

As we strive to modernise the construction industry and embrace digitalisation, effectively managing the challenges involved in this shift is crucial for the industry's future success.

Digital adoption challenges

Fully embracing digitalisation requires a comprehensive understanding of its potential benefits. Without comprehensive knowledge in this area, we cannot realise the transformative opportunities that digital technologies offer.

There is resistance to change within the construction sector, as deep-rooted traditional practices hinder the smooth adoption of digital technologies. To overcome this, it is crucial to make a collective effort to promote a cultural shift towards embracing technological innovation.
The construction industry is highly fragmented, with a variety of stakeholders that each have their own unique processes and systems. To effectively implement digital solutions across these diverse components, careful planning and coordination are essential.
The foundation of digitalisation lies in the gathering and sharing of sensitive information. It is fundamental to safeguard these digital spaces through strong cybersecurity practices and strict adherence to privacy regulations.
Insufficient infrastructure, poor internet connectivity and/or immature technological frameworks may hinder the smooth implementation of state-of-the-art technologies. Upgrading physical infrastructure (e.g. broadband networks), encouraging public-private collaborations, incentivising technological advancements and implementing supportive policies for digital tool adoption, will help to overcome these challenges.

Promoting stakeholder collaboration and providing training programmes to address the technology skills gap, can also help accelerate the industry's transition towards digitisation despite these obstacles.