57% of participants identified AI as the leading trend in 2025. (Image source: Versatile International)
Natural stone project management consultancy Versatile International has surveyed 168 construction professionals and found that the construction industry in the UAE and Saudi Arabia is "on the verge of a technological and sustainability-driven transformation"
The survey titled The Construction Pulse gathered insights from senior professionals spanning all stages of the construction process, including developers, architects, designers, and project management consultants. The findings revealed that 57% of participants identified artificial intelligence (AI) as the leading trend set to shape the construction industry in 2025.
The survey also highlighted sustainability as a major catalyst for innovation, with 55% of respondents noting the growing integration of renewable energy and green building certifications in development projects.
In the short term, 51% of respondents identified escalating costs and increasing project complexity as the most critical issues impacting the industry.
Around 53% of the stakeholders in the UAE and Saudi Arabia also cited regional market expansion when asked about their primary focus for growth this year.
Other findings
56% of the respondents said that labour shortages will be a substantial challenge within the next ten years, which could affect the industry's ability to deliver projects on time and maintain quality standards. 46% also highlighted the need for more specialised skilled employees as a secondary challenge.
"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 decarbonisation goals," the report said.
Despite the optimism surrounding the transformative potential of AI and sustainability in the construction sector, the survey revealed key concerns among respondents. Rising costs emerged as the leading challenge, with 51% of participants from both the UAE and Saudi Arabia identifying it as a critical issue. This underscores the importance of adopting smarter budgeting strategies and reducing resource wastage caused by rework to navigate the financial pressures facing the industry.
“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.”
