Across the GCC, construction and real estate are undergoing a quiet but consequential shift as digital technologies move from pilot-stage experimentation to system-wide adoption. Long characterised by large-scale projects, fragmented supply chains and labour-intensive delivery models, the region’s urban environment is increasingly shaped by data-driven design, automated construction techniques and digital asset management. This transformation is being accelerated by government-led digitalisation agendas, the scale of ongoing mega-projects and the need to address persistent challenges around productivity, cost overruns and sustainability.
Construction productivity has lagged other sectors globally for decades, with global consulting firm McKinsey estimating that construction productivity growth averaged 1% annually worldwide between 1995 and 2015 compared with 2.8% across the wider economy. In the Middle East, these challenges are compounded by complex procurement structures, heavy reliance on migrant labour and the scale of project pipelines. Saudi Arabia alone had over $1.3trn worth of construction and real estate projects planned or under way as of early 2026, placing pressure on delivery timelines, workforce availability and cost control.
Building Information Modelling (BIM)
BIM has become a central pillar of this shift. Once used primarily for visualisation, BIM is now embedded across the project lifecycle in several GCC markets, supporting design coordination, clash detection, cost estimation and facilities management. Saudi Arabia mandated BIM adoption for the government with implementation overseen by the Saudi Contractors Authority across a number of giga-projects such as NEOM, Diriyah Gate, and The Line. In the UAE, Dubai Municipality requires BIM for buildings exceeding 12 floors or with a built-up area greater than 20,000 sq metres, and compliance is tracked through a digital building permit platform. Additionally, digital modelling helps reduce rework and improve coordination on complex developments such as airports, transport hubs and mixed-use districts.
Digital Twins
Beyond BIM, the integration of digital twins is beginning to reshape asset management across the region. It refers to a real-time virtual replica of a physical building or infrastructure asset that integrates BIM data with internet-of-things (IoT) sensors, artificial intelligence (AI), and automation. Digital twins extend static models into live, data-fed representations of physical assets, enabling real-time monitoring of energy use, structural performance and maintenance requirements.
In Qatar, AI has been deployed across Lusail City to provide a digital backbone in the development and operational process, with government reports demonstrating reductions in maintenance response times and improved operational efficiency across utilities networks. For large-scale urban developments designed to operate for decades, the ability to optimise performance post-construction is increasingly as valuable as construction-phase efficiencies.
Robotics
Automation and off-site construction methods are gaining ground as developers seek to address labour constraints and improve build quality. Modular construction, precast concrete systems and volumetric units have been deployed across residential, hospitality and health care projects in Saudi Arabia and the UAE. The value of Saudi Arabia’s precast concrete factories was valued at $3.9bn as of 2025 and is set to reach $7.2bn by 2033, reflecting a compound annual growth rate of 8.2% and a growing demand for industrialised construction inputs in the country. These approaches reduce on-site labour requirements, improve quality control and shorten delivery timelines. Robotics and additive manufacturing remain at an early stage but are progressing steadily. Dubai’s 3D Printing Strategy aims for 25% of the city’s buildings to incorporate 3D-printed components by 2030.
AI
The use of AI is reshaping planning and risk management in the UAE’s construction sector. AI-driven scheduling tools analyse historical project data, labour availability, supplier reliability and even weather patterns to predict delays, optimise sequencing and flag risk factors before they materialise. UAE developers are already integrating AI into project lifecycles to reduce human error, streamline resource allocation, and improve overall efficiency. Beyond scheduling, several large developers are now using AI-based portfolio analytics to assess contractor performance, drawing on datasets compiled from past project outcomes. This enables more accurate benchmarking of contractors across portfolios and supports better procurement decisions. Studies show around 65% of construction firms in the GCC leverage AI in some capacity, whether for project management, risk forecasting, or cost estimating. Global perspectives reinforce these local trends.
Sustainability
Sustainability imperatives reinforce the case for digital construction adoption. According to the UN, construction and buildings account for approximately 39% of global energy-related carbon emissions. In response, GCC governments have introduced increasingly stringent energy efficiency standards supported by digital compliance tools. Saudi Arabia’s Building Energy Conservation Code integrates simulation-based assessments during the design stage, and the UAE’s Estidama and Al Sa’fat systems require digital documentation to assess environmental performance. These frameworks incentivise early-stage modelling of energy use, water consumption and material impacts, embedding sustainability considerations into project economics rather than treating them as post-completion adjustments. Real estate operations are also being reshaped by proptech adoption, particularly in commercial and residential asset management. Smart building systems integrating IoT sensors, energy management software and tenant engagement platforms are becoming standard in Grade A developments across Riyadh, Dubai and Doha. Smart-enabled homes in the GCC command rental premiums of around 7%, reflecting growing tenant demand for operational efficiency, comfort and sustainability reporting. For owners, these systems provide granular performance data that supports predictive maintenance and long-term value.
Challenges
Headwinds remain. Skills gaps continue to constrain adoption, particularly in advanced modelling, data analytics and systems integration. Governments have launched training initiatives such as Saudi Arabia’s Human Capability Development Programme, launched in 2021 to empower citizens and elevate competitiveness and the UAE’s National Programme for Coders, which aims to train 10,000 coders. Surveys conducted by the Chartered Institute of Building Middle East indicate that shortages of digitally skilled personnel persist, threatening to slow the pace of change. Interoperability issues between software platforms also remain a barrier, with fragmented standards limiting data continuity across project phases. Cybersecurity risks are an emerging concern as construction and real estate systems become increasingly connected. Smart buildings and digital twins generate vast volumes of sensitive operational data, raising questions around data governance, resilience and ownership. Regulatory frameworks are evolving but developers and operators are being forced to invest more heavily in secure architectures and compliance systems to mitigate exposure and protect tenant and investor interests.
An additional dimension shaping technology adoption lies in digital dispute resolution and contractual certainty. Construction disputes in the GCC had historically been complex, document heavy and protracted, reflecting the scale and contractual structures of major projects. Digital record-keeping, time-stamped site data and AI-assisted document review are transforming this dynamic by creating verifiable project records that can be used proactively in claims management as data suggests that projects with structured digital documentation experience shorter dispute resolution timelines and lower settlement costs. For international investors and contractors, this contributes to greater contractual certainty and improves the overall investment attractiveness and feasibility for large-scale developments. Taken together, these developments signal a structural shift in how construction and real estate markets operate across the GCC. Digital technologies are reshaping governance, finance, risk management and regulatory oversight. As digital systems become embedded across the asset lifecycle, they are altering the balance between speed, scale and control that has historically defined the region’s development model. The success of this transition will depend both on continued investment and the ability of institutions, regulators and market participants to integrate technology within coherent legal and operational frameworks that support long-term asset performance and investor confidence.
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