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Saudi boom: Harvesting MEP business growth and stability

Mohamed Anees of GRFN Global says MEP consultancy and contracting firms in the GCC region can take full advantage of the sophisticated construction ecosystem that mega-developments in the Kingdom are engendering

  • By Content Team |
  • Published: May 21, 2024
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In the past decade, the Middle East has witnessed a significant increase in the development of the construction market. With a dynamic that fostered the emergence of several consultancies and contracting companies to cater to the diverse range of projects newly initiated, this increase was approached as an extension to the practice standards and norms that have been in place. But within this market, Saudi Arabia has become uniquely synonymous with visionary mega developments and new projects being announced as well as ambitious targets and requirements that symbolise a paradigm shift in the architecture, engineering, and construction industries within the Kingdom. These iconic projects are not just reshaping the development skyline but are also redefining the standards of practice for local and regional consultancies.

The transformation presents a golden opportunity for regional consultancies to elevate their services and offerings to unprecedented levels. Substantial investments and a commitment to excellence provide great opportunities for consultancies and contractors to offer their services in an unconventional dynamic that fosters creativity and innovation.

The essence of these mega-developments is marked by a distinct shift within the market towards meeting and exceeding international standards in building performance, sustainability and technological integration. And aside from the fact that the GCC region has always aimed to adopt international standards within its projects, this shift represents a higher level of commitment and articulation that is positively affecting sustainable developments and building performance. With that happening, consultancies now face a landscape where the bar for quality and innovation is continuously being raised to not only align with global best practices but also conform to the local environment and culture.

Consultancies are at the forefront of this change, tasked with translating visions into tangible realities. With budgets that are larger than the practice norm, consultancies and contractors are offered the freedom to utilise cutting-edge technologies and innovative design frameworks that might have been constrained by financial restrictions in regular projects. This has opened new avenues for development on the service offering side as well as on the internal operations side.

The ripple effects of Saudi Arabia’s new mega-developments are being felt regionally and internationally. Within the region, the fierce competition and high requirements compel consultancies to elevate their standards to meet competition, often collaborating with global firms to enhance their expertise and output quality. Internationally, the success of these projects places the region’s consultancies in a favourable position to attract more partnerships and projects, expanding their footprint and influence across the industry. It also helps in adopting international best practices and higher standards that in time, should set the new standard benchmarks and practice norms in the region.

Additionally, and as there has always been a significant gap between innovative academic research in building performance and its practical application, the current wave of mega-developments provides the much-needed financial support and market opportunities to bridge this gap. Consultancies now have the resources to experiment with new ideas and integrate them into mainstream practices more swiftly, and as these projects progress and operate, the collection and analysis of performance data will further develop research, making sustainable practices more accessible and cost-effective. This not only accelerates the continuous adoption of innovative solutions but also enhances the built environment within the region.

On another note, with the new industry landscape, it has started to become more challenging to find local and regional consultancies and contractors that can keep up to pace with these ambitious projects. As the requirements get more complex, the calibre available as well as technical capabilities will require substantial development. While this is a positive note when it comes to elevating service standards, it might hinder the opportunities to swiftly include local and regional consultancies. The close integration and collaboration process that is being adopted involves all stakeholders in an interdisciplinary approach. This might be a new challenge for some of the region’s more traditional consultancies, as it requires enhancing the consultancies’ technical capabilities and adopting a new mindset in approaching the developments and projects. On the contractor side, the scale and technical requirements are even higher, and with the scale of these projects, a substantial investment is required to be able to match the currently available workload; but aside from these being challenges to consultancies and contractors, they are positive indicators to a prosperous market.

It is, however, a concern when it comes to the sustainability of this dynamic. The opportunity provided now for the consulting and contracting industries is substantial and could provide rapid growth in the short term, but it is paramount that they focus not only on expanding in terms of technical capabilities and scale, but also on adopting resilient and adaptable growth, which could be maintainable after the market normalises. With that in mind, consultancies can reap multiple long-term benefits while smoothly navigating that high load period.

It is also a significant achievement to see sustainability evolving from a mere buzzword to a foundational component of modern architecture in the Kingdom. These developments are a great opportunity to standardise high-level sustainable practices, potentially setting new norms for the industry. And as these projects come to completion, they offer a template for future developments.

What is happening in the Kingdom is truly remarkable, with benefits and a positive impact that extends to the entire region for years to come. It is up to the different stakeholders now to keep up with the pace of development, while having agile frameworks and methodologies to deliver their services, and to make sure they embed the new practice dynamics within their companies.

The writer is Regional Business Development and Communications Director, GRFN Global. He may be contacted at anees@grfn.global.

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