With the market having grown to $94 billion last year¹, the UAE government plans a further 34% increase in government spending on construction this year². Meanwhile, Saudi Arabia has pledged more than SAR 700 billion to meet net-zero emissions targets by 2060³. The Middle East is seeing a flurry of historic construction projects, such as the King Salman International Airport⁴, the world’s largest, and Saudi Arabia’s high-tech The Line City⁵, inspire investment across the region. However, it remains clear that COP28 has ruffled some feathers, and sustainable innovation across the sector must become a top priority for developers and contractors across the board. 

Furthermore, costs are set to rise on construction projects in the UAE and Saudi Arabia by 2-3% and 5-7%, respectively, this year, according to a regional report⁶ by Currie and Brown, with inflation and increasingly stringent sustainability regulations cited as contributing factors.  

Managing the trifecta of construction industry growth, environmental impact and rising costs will require focus across several dimensions, including significant technology investment to improve the efficiency of project operations. Technology that realises the value of a growing pool of readily available data will be paramount here. The potential of data-driven decisions in the construction industry is immense, particularly for harnessing real-time insights that allow teams to swiftly identify inefficiencies and optimise processes on the fly.

Maximising productivity through data 

Recent advances in Artificial Intelligence (AI) and Machine Learning (ML) have supercharged the power of telematics and data solutions, presenting newfound potential for data through real-time analysis that goes far beyond basic tracking. For instance, using sensors and other data collection equipment, teams can power automated tracking tools that monitor a wide range of metrics relating to equipment usage, from performance and fuel consumption to operator behaviour. 

Capturing this critical information gives all stakeholders a holistic overview of projects, offering a pre-emptive approach to operations that can translate into real actionable improvements to operations, such as reducing equipment idling time and fuel consumption. These aren't just numbers on a spreadsheet either; they produce a substantial decrease in carbon emissions, aligning with broader sustainability goals. 

Setting a benchmark for the industry 

While the benefits of understanding environmental impact are clear, the construction industry still faces challenges in adopting standardised data practices to provide clarity for professionals along the supply chain. A lack of stringent data requirements can lead to potential misinterpretations of data, meaning project teams are missing out on potential efficiencies.

Efforts and investments to accelerate the proliferation of construction technology will miss the mark unless there is an improvement in data integration and standardisation. This begs the question of how data is currently being collected and stored. The adoption of shared data standards can ensure consistent data interpretation among stakeholders, creating a common ground for effective communication and laying the foundation for achieving interoperability. 

Standard data practice is also a crucial precursor for CO2 benchmarking, which can empower construction teams to better assess their environmental impact. Standardised data practices can also lead to more accurate reporting and analytics, an increasingly important consideration in a sector being put under the microscope to slash emissions. 

To reach this digital nirvana, where everyone speaks the same data dialogue, the sector will need to improve collaborative efforts across the supply chain and with external bodies, like 

regulators. Education and awareness campaigns will also be critical to raise awareness about the challenges, while industry leaders must champion innovation by setting a clear example and demonstrating the benefits. 

Embedding a new green culture 

The question remains of who will take that first step. According to a recent industry survey⁷, most projects do not meet minimum regulatory requirements, with a perceived lack of regulation being a significant obstacle.

Without a governing body to supervise the enforcement and adherence to data standards, many companies will not be motivated to invest in ways to improve their data collection and reporting. Industry leaders must unite to advocate for industry-wide adoption and demonstrate the advantages of standard data practices to inspire their peers to embrace this transformation.

As with many industries, it may be the case that new stricter regulations are needed to mandate more comprehensive tracking and reporting of carbon performance, helping to set standards that will realise national ambitions to cut emissions. If this were the case, regulators would also play a role in showcasing the benefits of technologies that can facilitate greater data transparency.

Developing a collaborative approach 

Ultimately, the construction industry must come together to nurture a deeper understanding of how best to collect and manage data. This is an evolving process, currently being stalled by a few factors. While the adoption of telematics is widespread, the real challenge lies in effectively aggregating and analysing it, as disparate platforms often dilute the value of the data. Industry analysis suggests ^{over 95%}8 of construction data remains unused. 

Data from projects is often scattered across various platforms, and different teams might use conflicting data formats, terminologies, and metrics, leading to inconsistencies and increased project risks. These complexities and fragmentation pose significant barriers to adopting advanced technologies like Digital Twins, impacting the industry's digital transformation. 

This is where cloud-based aggregation and common data environments (CDEs) come into play. By consolidating data into a single platform and employing AI-driven analytics, construction companies can access critical information from the field and transform raw data into actionable intelligence. In the digital age, CDEs offer essential integration and cloud capabilities. They integrate with other tools, enhancing the project ecosystem, while cloud access promotes remote collaboration and data security. 

Building a smart future
As a seismic wave of new projects washes over the Middle East, the region has the potential to become a global leader in innovative and sustainability-focused construction technologies. The sector cannot afford to wait for wider access to renewable energy and more energy-efficient field equipment; the immediate priority must be to increase operational efficiency using the tools available to professionals today. 

The industry needs a comprehensive, scalable roadmap to achieve its sustainability goals, and data-driven decision-making is a key element. Collaboration across the supply chain, coupled with a unified data approach and robust sustainability reporting, is key to enabling companies to drive green innovation and elevate the industry. 

This shift will not be possible without strategic investment and a laser focus on transparency and accountability. The vast reservoir of data at our disposal, combined with cutting-edge telematics and data solutions, offers a beacon of hope. The challenge is clear, and the tools are within reach. It's now time for the industry to rise, measure, and master its environmental impact, forging a greener path for generations to come.

1 https://economymiddleeast.com/news/uae-construction-market-grows-to-94-billion-in-2023-report/

2 https://www.reuters.com/business/cop/saudi-arabia-targets-netzero-emissions-by-2060-crown-prince-says-2021-10-23/

3 https://www.reuters.com/business/cop/saudi-arabia-targets-netzero-emissions-by-2060-crown-prince-says-2021-10-23/

4 https://www.arabnews.com/node/2468856/business-economy

5 https://www.neom.com/en-us/regions/theline

6 https://www.curriebrown.com/en/news-insights/insights/2024/global-construction-costs-report/

7 https://www.turnerandtownsend.com/en/perspectives/will-regulatory-evolution-reshape-the-middle-eastern-construction-industry/

8 https://fmicorp.com/insights/industry-insights/big-data-big-questions-for-the-engineering-and-construction-industry

Shweta Saxena, CEO, MachineMax

(www.machinemax.io)

Built Environment's ‘Expert Talk’ series carries knowledge pieces every week by industry professionals who give their take on the key trends, observations, issues, and challenges in the built industry. The opinions in these articles are the author's own and do not reflect that of the publication. This is a standard disclaimer.