Tuesday, July 14, 2026 UNITED ARAB EMIRATES Edition Independent Journalism
Breaking
AI and modular design reshape how UAE builds hospitals, homes, airports

AI and modular design reshape how UAE builds hospitals, homes, airports

Local manufacturing and AI reshape construction practices across UAE infrastructure projects

UAE’s construction sector is building differently now, and the people who design, fund and erect the country’s hospitals, homes, airports and malls gathered this week to say so plainly.

The forum, Construction The Way Forward, brought together senior leaders from construction, real estate, engineering, manufacturing, banking and technology to examine the trends reshaping the sector. Hosted by the Indian Business and Professional Council’s Real Asset and Built Environment Focus Group and co-hosted by ESPA Group, the invitation-only discussion covered digital transformation, sustainability, localisation and industrial growth. One conclusion surfaced early and held throughout: the UAE’s ‘Make it in the Emirates’ agenda, combined with artificial intelligence and modular construction methods, will define how the country builds over the coming decade.

The shift reflects both opportunity and necessity. Rising shipping costs and geopolitical uncertainty have accelerated demand for UAE-manufactured products, reinforcing the government’s localisation strategy and the opportunities created through the UAE’s Comprehensive Economic Partnership Agreements with 28 countries.

AbdelRhman Obaid, Group CEO of MAHY Khoory Group, put it directly. “Made in the UAE now stands for quality. Manufacturing across infrastructure, technology, furniture and consumer products will continue to accelerate,” he said. Kommineni Mahender, Executive Director of BILT (ABM Group), added that recent market disruptions have pushed developers to source more products locally. “Projects don’t move because of the market; they move because of people. The UAE market remains fundamentally strong, and recent challenges have strengthened confidence in local manufacturing,” he said.

Meanwhile, artificial intelligence is moving from boardroom talking point to job-site reality. Materials account for almost 70 percent of project costs, making AI-powered procurement one of the sector’s most consequential opportunities. Wael Mansour, CEO of Royal Advance Electromechanical at Trojan Construction Group, said intelligent engineering, BIM, digital twins and modular construction are already transforming project delivery. “The future of MEP has already started. Buildings are becoming smarter during construction, and modular systems will redefine how we deliver projects,” he said.

The country’s digital ambitions extend well beyond individual buildings. The development of one of the region’s largest 5-gigawatt data centres signals the scale of foundational investment underway. Subraya Kalkura, Managing Director of John R. Harris and Partners, said demand is shifting towards data centres and digitally enabled infrastructure, with AI-powered simulation and Building Information Modelling supporting the UAE’s Net Zero 2050 targets. “Technology allows us to simulate how buildings will perform before they are built. AI will become one of our strongest tools for delivering more sustainable infrastructure,” he said.

Dr. Rajeev Neelivethil, Convener of the RABE Focus Group and Managing Director (MENA and APAC) at ESPA Group, moderated the discussion and framed the underlying shift. “Resilience is no longer a response; it is a strategy. The UAE sits at the centre of global trade and innovation, and the future of construction will be built through collaboration, digital transformation and sustainable leadership,” he said.

The audience discussion turned practical. Industry leaders called for stronger governance, more standardised contracts and improved payment practices to strengthen the construction ecosystem, concerns that touch directly on the workers, subcontractors and communities who depend on a well-functioning sector. Despite global uncertainty, the panel expressed strong confidence in the UAE’s long-term outlook, pointing to continued infrastructure investment, political stability and digital transformation as the foundations for sustained growth.

The harder question, left open at the forum’s close, is how quickly governance reforms and payment standards will catch up with the technology ambitions the industry has set for itself.

Q&A

What percentage of project costs do materials account for, and why does this matter for AI adoption?

Materials account for almost 70 percent of project costs, making AI-powered procurement one of the sector's most consequential opportunities to reduce expenses and improve project delivery

How are geopolitical and economic pressures affecting construction practices in the UAE?

Rising shipping costs and geopolitical uncertainty have accelerated demand for UAE-manufactured products, pushing developers to source more products locally and reinforcing the government's localisation strategy

What specific technologies are transforming construction project delivery?

Intelligent engineering, Building Information Modelling (BIM), digital twins and modular construction systems are already transforming project delivery, with AI-powered simulation supporting the UAE's Net Zero 2050 targets

What governance and operational challenges does the construction sector still face?

Industry leaders called for stronger governance, more standardised contracts and improved payment practices to strengthen the construction ecosystem and support workers, subcontractors and communities who depend on a well-functioning sector