UAE construction industry shows confidence despite globalchallenges

Despite economic headwinds plaguing the global construction industry, the UAE appears to
challenge the status quo. The vast majority (89%) of construction decision-makers in the country feel
confident about the market conditions over the next 12 months. This is according to a new ‘How We
Build Now’ benchmark report commissioned by leading global construction management software
provider Procore Technologies, Inc. surveying construction decision makers across the UAE.
Arguably, confidence is backed up by the high proportion of work in the pipeline, with just under half
(46%) of businesses expecting the number of projects to increase by up to 20% over the next 12
months, while over a third (34%) expect it to go up by 20% or more.
The research offers insight into the factors that stand to impact the growing momentum of the
construction industry in the UAE. For example, the top three challenges facing decision makers are
a lack of certainty/visibility on the potential pipeline of future work (26%), collecting pricing quotations
from different companies in a centralised location (26%), and understanding business status in real-
time to inform future business decisions and forecasts (25%).
The report also found that construction companies in the UAE lose significant resources to rework
with respondents stating that, on average, a quarter of a typical project’s time was spent on rework
or rectifying issues. Embodying the country’s characteristic tenacity, rather than caving into
economic and industry volatility, the large majority (71%) of construction decision makers in the UAE
say these pressures have instead prompted an increase in their digital transformation investment
over the past three to six months, with a quarter (25%) saying it has driven a significant increase.
Moreover, in the UAE, this increase appears to follow considerable investments that have already
been made in technology solutions as in the country, a global high of 20% of respondents described
themselves as digital-first businesses. Among the main technologies used by regional construction
firms are construction management platforms (38%), Artificial Intelligence and Machine Learning
(38%), drones (40%) and Internet of Things (48%).
“With the real-estate boom in the UAE, and the impressive number of iconic mega projects now
underway in the country, construction firms are presented with an unparalleled opportunity.
Recognising that these projects are not without their pressures and challenges, companies are
increasingly turning to technology to enable them to capitalise on these opportunities, achieve
profitability, and deliver projects on time,” said Mohamed Swidan, Head of the Middle East & North
Africa at Procore. “For those firms (40%) just starting out on their digital transformation journey, the
impetus is there to unlock the true potential of digital construction.”
Following the success of COP27 in Egypt last year, and with the upcoming edition of the conference
set to take place in the UAE in the last quarter of 2023, sustainability has been a key theme for the
country’s governments and businesses. This is perhaps why Procore’s report found the UAE to be
the most globally aware of the challenges pertaining to sustainability with 94% of respondents in the
country saying decarbonisation of construction projects will be an important challenge within the next
3 years.
But firms in the UAE are not only recognising the challenge – they are also rising to address it. At
present, over a third (36%) already follow the ISO 14001 – Environmental Management System
standard, and a further 46% intend to become compliant within the next 12 months.
“UAE construction decision makers understand the vital role of data in enhancing decision-making,
visibility, security, and client satisfaction, as well as promoting sustainability. The continued
investments in digital transformation not only enhance the industry’s efficiency and financial
performance in the present, but also equip it with the capability to adapt to unforeseen challenges
and meet future expectations,” concluded Swidan.


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