AESG

A KINGDOM ON THE CUSP: HOW SAUDI ARABIA’S CONSTRUCTION SECTOR CAN LAY ITS FOUNDATION FOR THE FUTURE

BY TOM BURKITT, COUNTRY DIRECTOR - SAUDI ARABIA, AESG

ACCORDING TO A RECENT AMF REPORT,

the MENA construction sector in 2023 is worth US$187 billion – representing nearly 8.4% of the region’s GDP. It comes as no surprise that with a contribution of around US$45billion, it is the Saudi Arabian construction sector that contributes the lion’s share of this.

Landmark projects such as NEOM have earned the Kingdom its rightful spot in the limelight. And while the futurist approaches to city planning, sweeping socio-economic reform, and a seemingly insatiable appetite for innovation are what have made headlines, it is the critical areas of sustainability, conservation, waste management and more that will form the foundation upon which the Kingdom can build its vision for the future.

It is, therefore, worth exploring these themes and considering what lies ahead as the Kingdom cements its position as a global hub for construction innovation.

Energy Efficiency

As a member of the Paris Agreement, Saudi Arabia has pledged to achieve net zero emission by 2060. Achieving this objective will require rapid and expansive diversification of energy sources, as well as a focus on enhancing the efficiency of energy use and reducing energy demand. Aware that construction activities and our urban built environments account for 39% of global greenhouse gas emissions, leaders in the Saudi construction industry have been advocating the use of energy-efficient technologies and design principles to significantly reduce the carbon footprint of buildings.

Currently, the focus of these efforts has largely been on greenfield projects. Designing for energy efficiency from the onset is of course the most effective approach, and these new developments will eventually raise the energy efficiency baseline for the entire building stock.

However, similar emphasis needs to be paid to existing buildings and infrastructure. Yes, energy in the Kingdom is presently cheap, but if the goals of Saudi Vision 2030 are to be met, then regulatory support and large-scale investment needs to be made in retrofitting. Fortunately, with new buildings pioneering advancements in energy efficiency, owners of existing developments will have the opportunity to easily identify and incorporate proven best practices.

Sustainable Materials

The supply chain disruptions of recent years may have forced governments to build resilience by favouring near-shoring and on-shoring, but sustainability stands to benefit too. Using environmentally friendly and locally sourced materials can significantly reduce carbon emissions associated with transportation and promote sustainable growth in the region.

While the momentum of the Kingdom’s construction sector is truly impressive, it is equally vital for the construction sector stakeholders to seek out opportunities to introduce or identify alternatives for the main culprits for high carbon emissions such as concrete, reinforced steel, and the fossil fuels used for operating heavy equipment. Critically important too is to think about the ‘whole of use’ for materials and choose those with the greatest potential for reuse and repurposing. This requires expertise that is only just being introduced to the country.

KAUST and other Saudi universities and their industrial partners, including AESG, are undertaking some promising programmes that are identifying low carbon and more sustainable options for construction materials. This is a very exciting area of applied research that also offers the Kingdom an opportunity to influence construction methods and practices globally.

Water Conservation

The fact that so many thriving cities – from Cairo to Quebec – are built around the banks of rivers is testament to the vital importance of water to human civilisation. Indeed, the waterenergy-food nexus is fundamental. >>>

Saudi Arabia knows that it needs to get it right across all these dimensions and has the opportunity to do precisely this under Vision 2030.

Cities in the Kingdom are now exploring more sophisticated approaches to Integrated Water Resource Management and improved land use management at catchment scale. Surface and groundwater interaction is complex and requires specialists that truly understand how to perform robust assessments and can recommend actionable strategies for holistic water resource management.

This is where the government is drawing on the expertise of private sector players such as AESG. We are investing in hydrological and groundwater expertise to support better resource man- agement and investigations. Together with key stakeholders, we are exploring the use of efficient irrigation systems, greywater recycling, and low-flow fixtures to minimise water consumption while maintaining the highest standards of comfort and hygiene.

Biodiversity Preservation

The growing popularity of the WELL Building Standard is recognition of intimate interplay between the design of buildings and the wellbeing of their occupants. Incorporating green spaces and promoting biodiversity within projects can enhance the quality of life for residents and contribute to the overall sustainability of the region. A number of the large development projects that we are working on in Saudi Arabia are engaging with us to understand how they can incorporate elements such as green roofs, vertical gardens, and preserve natural habitats to help create thriving ecosystems within urban environments.

There is a tremendous opportunity for Saudi Arabia to adopt regenerative practices to improve urban biodiversity and ‘green’ its cities. There are also opportunities to further strengthen master planning and design codes to embed best practices for introduction or regeneration of biodiversity in urban and peri-urban development centres.

Waste Management

Though incongruous with the impressive outcomes they produce, construction and real estate activities inescapably generate considerable amounts of waste. Whilst there are initiatives underway to improve waste management in the Kingdom’s urban centres, there is a tremendous amount of work yet to be done to reduce the volume of landfill waste. Best practices for waste management and construction waste minimisation need to be embedded into municipality management. We see the opportunity for PIF projects, in particular, to lead the way and share their learnings and approaches into the wider community. By implementing effective waste management strategies, such as recycling, reusing materials, and minimising construction waste, we can reduce environmental impact and even lower project costs.

A Kingdom On The Cusp

Saudi Arabia’s construction sector is poised at a critical inflection point. Opportunity is rife and the world is taking notice. Through forward-focused initiatives and investment, the government has clearly sounded the call for world-class support from leading international companies, and organisations such as AESG have been quick to respond. The convergence of top talent, capital and unfettered ambition is sure to yield impressive results and set new benchmarks for other nations to aspire towards.