MENA’s US$2 trillion investment in sustainable construction could boost 4.3 million jobs and cut emissions by 60 percent
Staff Report,
Dubai, UAE
US$2 trillion investment in sustainable construction can reduce emissions by 50-60 percent as the MENA region envisions the establishment of mega-projects in new ‘built environments’ by 2035. The findings are based on the latest research by Strategy& Middle East, part of the PwC network, and the planning, design, management and consultancy, Dar . Mega-projects like Saudi Arabia’s NEOM futuristic city and Qatar’s Lusail entertainment city will play a pivotal role towards achieving net zero emissions goals through sustainable development.
The ‘built-in environment’ which includes buildings, neighborhoods, and cities and their supporting infrastructure systems such as water supply and energy networks could deploy sustainability-focused methods and technologies across areas like urban planning, real estate, construction, and operating assets.
According to the Strategy& and Dar report, if the recommendations outlined the are implemented, the region-wide construction boom will not only promote environment-friendly building and maintenance procedures to meet net zero emissions, but also boost the country’s economy by creating 4.3 million jobs per year and contributing 10 percent to the MENA region’s Gross Domestic Product (GDP).
“The GCC region’s planned scale of investments uniquely positions it to pioneer a range of sustainable technologies and processes. Overall, the built environment is responsible for a high emissions footprint of around 37 percent of energy use, 39 percent of CO2 emissions, and 40 percent of material use globally, said Dr Yahya Anouti, Partner with Strategy& Middle East, and the leader of the sustainability platform at PwC Middle East. “Our estimates show that a reduction in these emissions for urban development could take the region more than halfway to realizing its net-zero emissions goals,” he added.
Planners and developers can implement technologies and innovations needed to rethink the built environment in the near term, such as solar photovoltaics, greener construction material and artificial intelligence (AI) enabled systems in buildings. However, the report indicates that other innovations require additional investment and time to develop, test, and integrate for best results.
“If GCC stakeholders – including policymakers, innovators, and developers – embrace a truly innovative and sustainable approach to urban development, they face a golden opportunity to set a new global standard. From urban planning to architecture, civil engineering, mechanical systems, and construction materials, sustainable development can unlock deliver widespread better quality of life, incremental economic growth, and develop local skills and jobs,” said Balsam Nehme, Head of Sustainability, Dar Al-Handasah.
The Strategy& and Dar report points out that the sheer scope of the changes necessary to fully capture the US$2 trillion opportunity has significant implications for stakeholders in the built environment. Regulators would need to play a role in stimulating demand for the technologies, including through the inclusion in green building codes. Developers would need to embrace sustainable construction techniques and may want to set specific goals, such as emission reduction targets. Sovereign wealth funds and other financiers are essential to jump-start and drive the transition, potentially by setting net-zero aspirations for the developments they are financing. Collaboration is required among all stakeholders, and their success depends on sharing lessons learned from pilots and trials to drive the adoption of sustainable practices and innovations.
“Our research examines over 50 innovations that can shift the paradigm towards sustainable built environments, substantially reducing emissions from both embodied and operational carbon. These innovations encompass a variety of passive measures, including the design of buildings, as well as active measures, such as more efficient electrical and mechanical systems,” said Sarah Al Feghali, the moonshots and innovation lead of the Ideation Center at Strategy&.
“Additionally, several measures can be implemented to support policymakers in their planning decisions, while aiding developers in addressing the opportunities associated with the region’s built environment aspirations,” she added.
The report from Strategy& and Dar provides high-potential and actionable applications across multiple areas to reduce emissions in the built environment. These include areas such as mobility, managed landscapes, development density, mechanical systems, and construction processes. Among the applications are treatment of wastewater at the site of generation which reduces greenhouse gas (GHG) emissions by nearly 90 percent and decreases energy consumption from pumping water to the treatment site. Recycled roads can reduce embodied carbon by more than 90 percent. Additionally, the cost of construction will reduce by half compared to traditional asphalt roads as well as require less energy for their production. Vegetated roofs, also known as living or green roofs can make roof surfaces 30 to 40 percent cooler and collect storm-water. Designing for modular assembly can reduce embodied carbon emissions by more than 19 percent over the lifetime of the built asset. Dynamic façades will help save energy by 55 percent by increasing the amount of useful daylight directed to buildings.
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