Sustainable construction in the UAE
Sustainability measures
The industry faces a pressing need to swiftly reduce carbon emissions to align with global targets.
While several solutions are known, the industry must elevate its ambitions across all aspects of the development life cycle. Embracing sustainable materials, advanced technologies and environmentally conscious strategies has to become standard practice in new construction and refurbishment, with transparency and disclosure being essential for attaining these goals and counterbalancing greenhouse gas emissions in a tangible and credible manner.
Source: Turner & Townsend survey
Survey findings:
In the assessment of sustainability measures within projects over the latter half of 2023, responses indicated varying degrees of uptake. Specifically, 75 percent of respondents noted a general increase in such measures, while three percent indicated a significant rise. Conversely, 22 percent reported no observable escalation in implemented measures.
Regarding strategic initiatives aimed at achieving net-zero emissions, most respondents (75 percent) disclosed that their respective companies had outlined strategies for this goal, although tangible outcomes for many were yet to be realised. Additionally, a noteworthy 47 percent stated that their organisations were actively executing plans to achieve Net Zero status, while a smaller subset (3 percent) had already accomplished this feat. Notably, 16 percent of respondents indicated that their companies had not yet formulated strategies toward achieving Net Zero emissions. *
Anticipations regarding the impact of COP28 on the UAE construction industry in 2024 varied among respondents. A significant majority (75 percent) expressed belief in some form of influence from the conference, with 66 percent expecting a marginal effect and nine percent foreseeing a substantial impact. Although the evidence in the intervening period since the close of the conference suggests that it might be some time before this impact is seen.
of respondents acknowledged some level of commitment to net zero within their projects. However, upon closer examination, 75 percent revealed minimal to no commitment within their current projects, with 41 percent citing very few projects with such commitments and 34 percent reporting none. Interestingly, only nine percent of respondents indicated that a substantial number of their projects had a commitment to net zero.
Regarding perceptions of the supply chain's capacity to deliver on carbon reduction ambitions, there remains considerable uncertainty. While 22 percent expressed confidence, 47 percent remained skeptical and 31 percent were unsure. Despite a slight decrease in skepticism compared to November 2022, the persistent uncertainty underscores ongoing doubts about the supply chain's capabilities in meeting carbon reduction goals. This is also perhaps indicative of a need for additional regulation.
*Note that a portion of respondents chose not to provide input on certain aspects of the survey.
Source: Turner & Townsend survey
Changing the status quo to achieving net zero
In the realm of UAE construction market intelligence, achieving net-zero commitments goes beyond mere strategy. The crux lies in charting a tangible, cost-effective path towards these commitments. It's imperative to translate these ambitious targets into practical implementation plans, ensuring alignment with business objectives. Such an approach not only embeds the necessary methodologies but also effectively manages, monitors and controls improved carbon performance, a critical missing element within the construction industry.
Source: Turner & Townsend survey
“Viewing net zero as both the end goal and the pathway to minimal environmental impact is pivotal. This perspective must become routine for industry leaders, penetrating the wider sector and society, fostering optimism and expediting adoption by others.”
Lindsey Malcolm Sustainability Lead, Middle East, Turner & Townsend
There's a noticeable shift in the region, with developers increasingly mindful of the broader impacts of construction. This trend stems from a heightened awareness of Scope 3 emissions, leading to more extensive life cycle assessments and informed decision-making that surpasses mere cost considerations. Expo City in Dubai serves as a testament to this trend, adopting a life cycle approach and foreseeing the project's transitional nature. From hosting Expo 2020 Dubai, to transforming into an innovation-driven city of the future, it illustrates the shift towards decarbonisation, embracing educational, cultural and professional experiences.
Government-led carbon targets, as highlighted in our 2023 Middle East Sustainability report, are seen as pivotal in guiding businesses towards sustainable practices aligned with national policy. Emulating successful regulatory frameworks from other markets like the EU and North America could accelerate this shift within the UAE construction industry.
Source: Turner & Townsend survey
Government-driven incentives and supportive regulations aim to expedite progress in emissions reduction efforts.
In alignment with global efforts, the UAE has heightened its 2030 greenhouse gas emission reduction target to 31 percent compared to business-as-usual levels and has initiated a 'Net Zero by 2050' strategy. That said, economic fluctuations may impact how businesses address climate change in the short term.
Despite the immediate uncertainty, there is a clear opportunity for the industry to enhance operational efficiency, capitalise on cost savings and make progress towards decarbonisation. The UAE construction industry’s establishment of pan-industry focus groups such as the Advancing net zero volunteering team, also supports the advancement of sustainable construction.
Source: Turner & Townsend survey
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