The construction industry in the UAE and Saudi Arabia is on the verge of a technological and sustainability-driven transformation, according to The Construction Pulse, a new survey conducted by Versatile International – the region’s first natural stone project management consultancy. The survey, in collaboration with Ipsos in UAE, captured insights from 168 senior level professionals at all stages of the construction process – ranging from developers, architects and designers – to project management consultants – revealed that 57% of respondents view Artificial Intelligence (AI) as the most prominent trend shaping the sector in 2025.
At the same time, 55% of respondents in the survey emphasised sustainability as a key driver of innovation, with development projects increasingly incorporating renewable energy and green building certifications. However, the findings reveal challenges ahead, with 56% of respondents citing labour shortages as a substantial issue over the next 5 to 10 years, and 46% identifying the need for more specialized skilled employees. In the short term, 51% of respondents pointed to rising costs and project complexity as the most significant obstacles currently affecting the industry.
57% of Gulf construction professionals surveyed cite AI as the most transformative trend shaping the industry in 2025.
Key Findings
The survey revealed major trends that will define the Gulf construction landscape:
- AI’s Impact: 57% of respondents believe AI will revolutionize workflows and decision-making in 2025.
- Sustainability Surge: 55% of professionals highlight sustainability as the top priority across construction initiatives.
- Labour Shortages: 56% of respondents identify labour shortages as a substantial challenge over the next 5 to 10 years, affecting the industry’s ability to deliver projects on time and maintain quality standards, with 46% also pointing to the need for more specialised skilled employees as a secondary challenge.
- Growth Focus: 53% of construction industry leaders in the UAE and KSA cited regional market expansion when asked about their primary focus for growth in 2025.
While there is optimism about the potential of AI and sustainability in revolutionising the industry, the survey also identified some concerns for respondents. When asked about the biggest challenges that are currently facing the sector, respondents cited rising costs (51%) as the primary challenge facing construction professionals across both the UAE and KSA, highlighting the need for smarter budgeting strategies and minimizing wasted resource due to rework.
55% highlight sustainability as a key factor shaping the industry, with Saudi Vision 2030 accelerating green building initiatives.
A Sector in Transition
“These findings highlight a construction industry at a crossroads,” said Marco Fahd, Chairman and CEO of Versatile International. “AI and sustainability are reshaping how projects are planned and delivered and continue to create opportunities in the UAE and Saudi Arabia. On the other hand – challenges like labor shortages and rising costs require practical solutions, such as better workforce development and efficiency. This survey is not just a snapshot — it is part of a long-term effort to establish an industry benchmark, helping to identify key areas of challenge and opportunity. Accessing specialist consultants like Versatile International can play a critical role in avoiding costly delays and supply chain issues that risk project deadlines.”
Rising costs, project complexity and labour shortages are cited as the top challenges currently facing the construction sector, whilst the primary growth opportunities have 53% of construction professionals focused on regional market expansion as the top priority.
The Regulatory Environment
Across the region, in recent years, updated policy frameworks seek to guide the industry towards achieving sustainable goals. In the UAE, 64% of respondents pointed to regulatory changes as a challenge, reflecting the ongoing evolution of the industry as it redefines sustainability benchmarks in order to reach decarbonization goals.
Opportunities for 2025
It is clear that construction professionals across the Gulf are establishing robust plans for 2025. When asked about their biggest focus areas for growth in 2025, 53% of construction professionals across the UAE and the Kingdom identified entering new regional markets as the top priority. Industry leaders emphasize the importance of collaboration, workforce development, and innovation to meet increasing demands while maintaining cost efficiency and quality.