UAE has highest percentage of ‘digital-first’ construction firms in EMEA, report says – News

Decarbonizing construction projects will be a major challenge

Workers are seen at a construction site in Dubai. The study provides insight into the factors influencing the growth momentum of the UAE construction industry. — AFP file

A strong majority (89%) of construction decision makers in the UAE are confident about market conditions over the next 12 months, despite economic headwinds plaguing the global construction industry, a study showed on Monday.

The How We Build Now report was commissioned by Procore Technologies, Inc., a leading construction management software provider, to survey construction decision makers across the UAE.

Confidence is backed by the high number of jobs in the pipeline, with less than half (46%) of businesses expecting a rise of up to 20% in the number of projects over the next 12 months, while more than a third (34%) expect It goes up 20% or more.

The study provides insight into the factors influencing the growth momentum of the UAE construction industry. For example, the top three challenges decision makers face are lack of certainty/visibility into potential pipelines of future jobs (26%), collecting quotes from different companies in a centralized location (26%), and understanding business conditions in real-time for future business decisions and Forecasts provide information (25%). The report also found that construction firms in the UAE lose significant resources to rework, with respondents indicating that, on average, a quarter of a typical project’s time is spent on rework or correcting issues.

An overwhelming majority (71%) of construction decision-makers in the UAE say these pressures have instead led them to increase digital transformation investments over the past three to six months, reflecting the country’s characteristic resilience rather than being caught in economic and industry volatility, A quarter (25%) said it had driven significant growth. Furthermore, in the UAE, the growth appears to follow heavy investment in technology solutions in the country, where 20% of global respondents describe themselves as digital-first businesses. The top technologies used by regional construction companies include construction management platforms (38%), artificial intelligence and machine learning (38%), drones (40%) and the Internet of Things (48%).

“With the UAE real estate boom, and the staggering number of iconic mega-projects underway in the country, construction companies face an unparalleled opportunity. Recognizing that these projects are not without stress and challenges, firms are increasingly turning to technology to enable them Being able to capitalize on these opportunities, achieve profitability and deliver projects on time,” said Mohamed Swidan, Regional Head, Middle East and North Africa. front core. “For those companies just starting their digital transformation journey (40%), they have the drive to unlock the true potential of digital builds.”

Sustainability is a top priority

Sustainability has been a key theme for the country’s government and businesses following the success of last year’s COP27 in Egypt, with the next conference scheduled to take place in the UAE in the last quarter of 2023. This is perhaps why Procore’s report found that the UAE is the world’s most aware of sustainability challenges, with 94% of respondents in the country saying decarbonisation of construction projects will be a key challenge in the next 3 years.

But companies in the UAE not only recognize the challenge, but rise to it. Currently, more than a third (36%) of companies already comply with ISO 14001, the standard for environmental management systems, and another 46% intend to achieve compliance within the next 12 months.

“UAE construction decision-makers understand the vital role of data in enhancing decision-making, visibility, safety and customer satisfaction, as well as promoting sustainability. Continued investment in digital transformation not only improves the efficiency and financial performance of the current industry, but also makes it Equipped with the ability to adapt to unforeseen challenges and meet future expectations,” concludes Swidan.