The construction industry in the UAE and Saudi Arabia is set to be dominated by advancements in artificial intelligence (AI) and sustainability in 2025, according to a new survey by Versatile International in partnership with Ipsos.
The Construction Pulse survey gathered insights from 168 senior professionals across the construction process, including developers, architects, designers, and project management consultants.
Key findings include:
- AI Transformation: 57% of respondents identified AI as the most influential trend for 2025, citing its potential to revolutionize workflows and decision-making.
- Sustainability Leadership: 55% highlighted sustainability as a critical driver of innovation, with renewable energy and green certifications emerging as top priorities.
However, challenges persist:
- Labour Shortages: 56% flagged a lack of skilled labor as a significant issue over the next 5–10 years, while 46% noted the demand for specialized talent.
- Cost Pressures: Rising expenses and increasing project complexity were identified as immediate obstacles by 51% of respondents, emphasizing the need for better budgeting and reduced resource waste.
Growth Priorities
A majority (53%) of UAE and KSA construction leaders are focusing on regional market expansion as their primary growth strategy for 2025.
Expert Insights
Marco Fahd, Chairman and CEO of Versatile International, remarked:
“The construction industry is at a turning point. AI and sustainability are redefining project planning and delivery in the Gulf, opening new opportunities in the UAE and Saudi Arabia. Yet, challenges such as labor shortages and rising costs demand practical solutions, including workforce development and enhanced efficiency.
“This survey provides not only a snapshot but also a foundation for benchmarking challenges and opportunities. Engaging specialized consultants like Versatile International can help mitigate risks such as delays and supply chain disruptions.”
The report concluded that industry leaders are establishing robust strategies to meet increasing demands, emphasizing collaboration, workforce development, and innovation to balance cost efficiency and quality.
