The Middle East can usher in a $2tn construction boom, slash emissions and create more than 4m new jobs a year if it adopts sustainable methods, according to a new report.
Research by Strategy& Middle East and Dar says sustainability-focused construction technologies could help the MENA region’s $2tn construction surge and reduce lifecycle emissions by 50-60 per cent.
The report suggests that the region has the potential to become a global leader in the use of innovative and sustainability-focused construction technologies as it invests up to $2tn in new “built environments” by 2035.
Middle East construction
Citing mega-projects such as the NEOM futuristic city in Saudi Arabia and Qatar’s planned Lusail entertainment city, the report also suggests sustainable technologies could take the region halfway to achieving its net-zero emissions goals.
The “built environment” refers to human-made surroundings that provide the setting for human activity, including buildings, neighbourhoods, and cities, alongside their supporting infrastructure systems such as water supply and energy networks.
Processes involved in developing new built environments include urban planning, real estate, construction, and operating assets – all of which could utilise innovative and sustainability-focused methods and technologies.
The report also estimates that the scale of the region-wide construction boom could deliver a substantial economic impact, representing just over 10 per cent of GDP for the region annually, as well as creating 4.3m jobs per year, if the recommendations are implemented.
Dr. Yahya Anouti, Partner with Strategy& Middle East and the leader of the sustainability platform at PwC Middle East said: “The GCC region’s planned scale of investments uniquely positions it to pioneer a range of sustainable technologies and processes.
“Overall, the built environment is responsible for a high emissions footprint of around 37 per cent of energy use, 39 per cent of CO2 emissions, and 40 per cent of material use globally,” he added.
“Our estimates show that a reduction in these emissions for urban development could take the region more than halfway to realising its net-zero emissions goals”.
The good news for planners and developers is that some of the technologies and innovations needed to rethink the built environment already exist and can be implemented in the near term, such as solar photovoltaics, greener construction material and artificial intelligence (AI) enabled systems in buildings.
However, the report indicates that other innovations are nascent and require additional investment and time to develop, test, and integrate.
Balsam Nehme, Head of Sustainability at Dar Al-Handasah, said: “If GCC stakeholders, including policymakers, innovators, and developers, embrace a truly innovative and sustainable approach to urban development, they face a golden opportunity to set a new global standard.
“From urban planning to architecture, civil engineering, mechanical systems, and construction materials, sustainable development can unlock deliver widespread better quality of life, incremental economic growth, and develop local skills and jobs”.
The Strategy& and Dar report points out that the scope of the changes necessary to fully capture the $2tn opportunity has significant implications for stakeholders in the built environment.
Regulators would need to play a role in stimulating demand for the technologies, including through the inclusion in green building codes.
Developers would need to embrace sustainable construction techniques and may want to set specific goals, such as emission reduction targets.
Sovereign wealth funds and other financiers are essential to jump-start and drive the transition, potentially by setting net-zero aspirations for the developments they are financing.
Collaboration is required among all stakeholders, and their success depends on sharing lessons learned from pilots and trials to drive the adoption of sustainable practices and innovations.
Five ways to cut emissions
- Wastewater: Wastewater can easily be treated at the site of generation, which reduces greenhouse gas (GHG) emissions by nearly 90 per cent and decreases energy consumption from pumping water to the treatment site
- Sustainable pathways: Recycled roads and pathways can reduce embodied carbon by more than 90 per cent and can be half as costly as traditional asphalt roads and require less energy for their production
- Living roofs: Also known as “vegetated” or “living” roofs, green roofs can make roof surfaces 30 to 40 per cent cooler. They have the added benefit of retaining stormwater, which is particularly important in the MENA region
- Modular assembly: Designing for modular assembly can reduce embodied carbon emissions by more than 19 per cent over the lifetime of the built asset
- Active facades: In very hot countries, dynamic façades change in response to the surrounding environment. They can increase the amount of useful daylight directed to buildings while allowing energy savings of up to 55 per cent
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