Dubai, United Arab Emirates. 06 August 2024: Governments and private sector companies in the Middle East are set for a fierce battle over the construction industry supply market for the next decade.
Efficio – a global leader in capital planning, procurement, delivery, and supply chain management with a dedicated Capital Projects & Infrastructure practice – is advising and setting policy for a range of regional organisations to improve bankability for their capital portfolios while ensuring efficient delivery with the best value and quality from suppliers.
The consultancy is currently involved in GCC construction projects worth USD 390 billion, a figure set to increase towards the end of the year as existing projects gather pace and new ones are launched.
According to David Mooney, Vice President and MENA lead at Efficio, who oversees the high-quality delivery of Efficio’s services and strategic growth in the Middle East, the construction industry has made a very strong start in 2024 and, as we enter the second half of the year, the demand for services and supplies is increasing at a very significant rate.
“This is driven by ongoing projects and the launch of major new developments covering both residential and commercial premises, in addition to the infrastructure development required to cater to this growth,” he said.
This strong market demand means Efficio’s current portfolio includes strategic delivery advisory for multiple giga projects in KSA, valued at over SAR 2 trillion, with direct involvement in the delivery of over SAR 400 billion of spend. Efficio is consulting on billions of Riyals’ worth of capital investments in other sectors across the kingdom, including mining, transport and mixed-use real estate development.
The Efficio team also covers, among other work, TAQA’s business portfolio in the UAE, which includes the development of major power and water sector utilities worth tens of billions of dirhams over the next 10-year period.
“In the UAE, Efficio has been TAQA T&D’s partners in planning and delivering its multi-billion-dirham capital portfolio for power and water since Q3 2020. We are working with TAQA to establish the governance and structure required for effective capital planning and procurement while supporting its delivery, and helping to build the required capabilities and capacity,” said David.
“This has included establishing frameworks for critical equipment, developing sourcing and delivery strategies for major programmes, and improving capital portfolio governance and management to optimise annual cashflow.”
This regional demand for specialist expertise across the supply chain ecosystem isn’t going to abate any time soon. The UAE market is continuing to progress at a steady rate, centred around the core growth strategy of energy transition with a focus on improving infrastructure and building for the future; Saudi Arabia has embarked on its ambitious 2030 journey, which has created an unprecedented strain on regional and global construction supply markets.
David said: “This has left organisations competing for the best suppliers on the market while working in parallel to prepare their organisations for effective capital planning, procurement and delivery. We work with them to set strategies and policies that ensure supply chain security and at the best economic value possible, in addition to building the right capabilities and capacities to sustain value through delivery.
“This is complemented by our localisation and local content practice where we are working with GCC governments to ensure localised supply chains become a measure to address the existing market constraints and maximise contribution to local economies.”
For example, Efficio is advising and/or working on over SAR 2 trillion worth of capital works in KSA, and with strategic organizations such as STC on the development of the country’s telecommunications sector.
Efficio’s holistic approach means that projects follow a timeline as strictly as possible and within budget parameters.
“Our work in the GCC is vital to the overall progress in the region and the organisations we work with are very progressive in how they set a clear strategy to achieve what needs to be delivered,” said David.
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About Efficio
Efficio has specialised in capital procurement, delivery and supply chain management for more than 20 years, supporting our clients across the globe to identify, deliver, and sustain improvement opportunities. This scale and singular focus set us apart. We help organisations implement sustainable procurement approaches, reduce costs, improve internal processes, and upskill their procurement teams, enabling them to become high value-generating functions within their businesses. Our combination of expertise, data, technology, and human intelligence delivers value improvements at speed, allowing organisations to operate more efficiently and compete more effectively in an ever-changing landscape.
We have been operating in the MENA region since 2014. During this time, we have worked on some of the region’s largest infrastructure portfolios and giga-projects, helping clients realise value from procurement and delivery faster, achieve end-to-end cost optimisation, deliver on sustainability improvements, and meet ICV and Local Content and requirements.