Versatile Launches GCC's First Construction Pulse Survey: AI to Revolutionize Gulf Construction
55% highlight sustainability as a key factor shaping the industry, with Saudi Vision 2030 accelerating green building initiatives.
The construction sector in the UAE and Saudi Arabia is on the brink of a major transformation, driven by technological advancements and sustainability initiatives. According to The Construction Pulse, a newly released survey by Versatile International—the region’s first consultancy specializing in natural stone project management—the industry is rapidly embracing change. Conducted in collaboration with Ipsos in the UAE, the survey gathered insights from 168 senior professionals spanning various roles, including developers, architects, designers, and project management consultants. The findings indicate that 57% of industry experts view Artificial Intelligence (AI) as the most influential trend shaping construction in 2025.
Sustainability Gains Momentum Amid Industry Challenges
Beyond technology, sustainability is emerging as a key driver of innovation. The survey revealed that 55% of respondents consider green building certifications and renewable energy integration crucial for future projects. However, despite the growing focus on sustainable practices, challenges persist. Workforce shortages were cited by 56% of industry professionals as a major hurdle over the next 5 to 10 years, while 46% pointed to the urgent need for a more specialized and skilled workforce. In the immediate term, rising costs and increasing project complexity are the most pressing concerns, with 51% of respondents highlighting them as key obstacles.
Key Industry Insights
The survey uncovered several major trends that are set to define the Gulf’s construction landscape in the coming years:
> AI’s Expanding Role: 57% of respondents believe AI will enhance workflow automation and decision-making by 2025.
> Sustainability as a Priority: 55% of construction professionals see eco-friendly initiatives as the industry’s leading focus.
> Labour Shortages & Skills Gap: 56% anticipate workforce shortages, with 46% emphasizing the need for highly specialized expertise.
> Regional Market Expansion: 53% of industry leaders in the UAE and Saudi Arabia identified regional growth as their primary objective for 2025.
While AI and sustainability offer promising opportunities, economic concerns remain a significant challenge. Rising material costs and complex project requirements are creating financial strain, requiring construction firms to adopt smarter budgeting and resource management strategies.
“These findings highlight a construction industry at a crossroads,” said Marco Fahd, Chairman and CEO of Versatile International. “AI and sustainability are reshaping how projects are planned and delivered and continue to create opportunities in the UAE and Saudi Arabia. On the other hand - challenges like labor shortages and rising costs require practical solutions, such as better workforce development and efficiency. This survey is not just a snapshot — it is part of a long-term effort to establish an industry benchmark, helping to identify key areas of challenge and opportunity. Accessing specialist consultants like Versatile International can play a critical role in avoiding costly delays and supply chain issues that risk project deadlines.”
Regulatory Changes and Their Impact
Government policies are playing a crucial role in shaping the industry’s future. In the UAE, 64% of respondents cited evolving regulations as a key challenge, highlighting the ongoing shifts in sustainability benchmarks and decarbonization goals. As authorities implement stricter environmental guidelines, companies must adapt to remain competitive while meeting new compliance standards.
Looking Ahead: Growth Strategies for 2025
Despite existing challenges, construction firms across the Gulf are preparing for a strong 2025. The survey indicates that 53% of professionals in the UAE and Saudi Arabia are prioritizing regional market expansion. To sustain growth, industry leaders are focusing on collaboration, workforce development, and technological innovation. By adopting AI, enhancing skill development, and embracing sustainable practices, construction companies aim to drive efficiency while maintaining cost-effectiveness and high-quality standards.
As the industry evolves, businesses that adapt to these changes will be best positioned for success in the rapidly transforming Gulf construction market.
Comments