Transition point for construction and engineering

On November 24, 2020 by Oracle

The ongoing digital transformation is changing the way projects are planned and delivered in the region

The coming years will see a transformation in the way that projects are delivered in the Middle East and North Africa (Mena) as project sponsors reshape their plans to reflect the changing social and economic needs of the region.

In a market that is seeing change across a wide range of areas, including a slowdown in real estate demand, localisation of content, and more stringent welfare requirements in response to Covid-19, the two biggest factors that are forcing project owners to adapt their development plans are climate change, and the long-term slowdown in demand for oil.

The drive to reduce carbon dioxide and other greenhouse gas emissions to hit the targets set out in the 2015 Paris Agreement is seeing governments demanding the decarbonisation of projects through a greener approach to building and infrastructure design, construction and delivery.

Meanwhile, project clients are seeking greater social and economic value from their project investments, as the Covid-19 pandemic and lower oil prices squeeze balance sheets.

Private sector real estate investors and developers are delaying or downsizing their investment plans in response to declining demand for many asset classes, while governments are seeking to reduce their capital spending commitments through alternative delivery mechanisms such as public-private partnerships (PPP), on critical infrastructure projects

The key to achieving these objectives is the digital transformation of construction, engineering and operation of projects in the region. A call for greater use of advanced building information modelling (BIM) by project clients is forcing designers, contractors, suppliers and end-user operators to integrate information through cloud-based digital twins. The earlier engagement of downstream contractors, suppliers and operators in design that this enables will reduce on site clashes and late-stage variations that lead to delays and disputes.    

The drive to reduce mistakes and improve safety will see increasing adoption of modular construction techniques, while the development of sensor technology in combination with artificial intelligence will enable real time monitoring of assets during construction and operation, allowing for more efficient utilisation of the asset, more efficient maintenance procedures, and optimisation of services.

With some $3.5tn of major projects planned across the Mena region, the pipeline of future projects is bigger than the $3.1tn combined value of all of the project contracts awarded in the region since 2004. So the potential for the region’s incredible growth story to continue is immense. However, unlocking that opportunity depends entirely on the ability of the region’s projects industry to deliver its digital transformation.

The latest report from Oracle Construction and Engineering, in partnership with MEED, considers the transformation underway across industries in the Mena region, featuring insights from leading thought-leaders and disruptive companies.

Download complete report here

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Download our free report: THE FUTURE OF PROJECT DELIVERY: Technology trends shaping construction and engineering in the Middle East

With some $3.5tn of major projects planned across the Mena region, the pipeline of future projects is bigger than the $3.1tn combined value of all of the project contracts awarded in the region since 2004. So the potential for the region’s incredible growth story to continue is immense. However, unlocking that opportunity depends entirely on the ability of the region’s projects industry to deliver its digital transformation.

Learn more about this in our latest report including contributions from ADNOC Group, Miral, Ma’aden, Emirates Global Aluminium (EGA)), AECOM, just to name a few.

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With some $3.5tn of major projects planned across the Mena region, the pipeline of future projects is bigger than the $3.1tn combined value of all of the project contracts awarded in the region since 2004. So the potential for the region’s incredible growth story to continue is immense. However, unlocking that opportunity depends entirely on the ability of the region’s projects industry to deliver its digital transformation.

Learn more about this in our latest report including contributions from ADNOC Group, Miral, Ma’aden, Emirates Global Aluminium (EGA)), AECOM, just to name a few.

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