Market Trends of GCC Green Buildings Industry
Increase in Residential Green Building Development
Nearly 5,300 projects in the Middle East and North Africa region, representing over 1.5 billion square meters of space, have adopted LEED since August 2023. The United Arab Emirates, in particular, is home to some of the world's most critical green projects, such as Masdar City in Abu Dhabi and the world's first LEED Platinum-certified mosque in Dubai.
As the United Arab Emirates prepares to host the 28th session of the Conference of the Parties, it continues strengthening its commitment to sustainability. In December 2022, it adopted the most essential national building regulations and standards. These aim to reduce energy consumption in buildings by up to 25%.
In the Middle East, Saudi Arabia has the largest concentration of LEED-certified buildings. The country's target to achieve 15% of its total energy needs from renewable sources by 2030 could be the main reason for this increase in sustainable real estate projects. Green Core is a compact residential building in Kuwait with sustainable construction techniques. A six-apartment building is designed around a centrally oriented core.
Abu Dhabi was the first of the seven Emirates to adopt a dedicated green building certification regime with the introduction of the 2010 Pearl Building Rating System (PBRS). The Abu Dhabi Urban Planning Council developed this as part of Estidama, a building methodology whose name is the Arabic word for sustainability.
Hence, the residential sector in GCC has a potential to be a major driver of the green buildings market by increase in demand for sustainable homes and adapting green practices and collaborating for further innovations. The GCC can create a thriving market for environmental responsible living spaces contributing to a greener future.
United Arab Emirates is Dominating the Market
Green architecture consultancy in the United Arab Emirates has recently seen a substantial increase in interest due to an increasing focus on sustainable development and environmental consciousness. The environmental impact of building and infrastructure projects must be managed urgently, given the accelerating pace of urbanization and expansion within the United Arab Emirates.
By 2030, the UAE government has set a target to have 50% of all buildings in Dubai be sustainably built. To this end, the government has launched several initiatives to promote sustainability in construction. Dubai's Green Building Rules have led to a reduction in CO2 emissions of 1.4 million tonnes, saving an estimated 4.5 billion dirhams on energy costs, said the report from Dubai Carbon.
By the second quarter of 2023, Dubai Municipality statistics showed that 72,000 buildings in Dubai complied with Green Building Specifications and accounted for 57% of all buildings.
The skyline of Dubai welcomes another impressive addition to the collection of architectural wonders, and it is estimated that construction will be completed by Q3 2024. Developed by Wasl, the mixed-use project will encompass approximately 167,733 square meters and feature residential apartments, offices, restaurants, a luxurious Mandarin Oriental hotel, and a swimming pool. The tower's twisting architecture is visually striking and focuses on security, sustainability, and energy efficiency.
The UAE government is taking several steps to boost the green building market driven by its commitment to its sustainability and environmental protection. By implementing these initiatives, the United Arab Emirates is aiming to establish as a global leader in sustainable construction.
