With effective supply chain strategies now recognized as critical for cost management, timely delivery, and enhanced sustainability, the integration of smart procurement processes is emerging as a key competitive advantage affirms Wajdi Marroun, Managing Director, Versatile International, the region’s first fully integrated Stone Project Management Consultancy.
Saudi Arabia is now at the forefront of the Gulf region’s green construction boom, setting the pace for smart development across the GCC. Driven by the ambitious Vision 2030 and a commitment to economic diversification, the Kingdom is revolutionizing supply chain management to support its mega-projects.
A recent industry survey commissioned by Versatile International, the Middle East’s first fully integrated stone project management consultancy, highlighted that sustainability goals are being prioritized throughout the Gulf’s construction processes, as well as a greater adoption of AI and nascent technologies.
However, the survey respondents, made up of senior construction professionals in the UAE and KSA, also reported ongoing challenges including rising costs, delivery delays, and difficulties in sourcing eco-friendly materials at scale. In Saudi Arabia, such supply chain inefficiencies – exacerbated by a high reliance on imported materials -can lead to significantly inflated costs and environmental impacts.
Supply chains underpin every aspect of project execution, and any disruptions have the potential to derail projects, causing delays, racking up costs and energy usage in the process. Materials procurement can account for up to 80% of total construction costs, while the construction sector contributes roughly 10% of global carbon emissions.
Import dependency
The Kingdom’s import dependency, illustrated by a staggering US$ 2.15bn spent on stone and glass in 2023, leaves projects vulnerable to volatile global markets. As the Kingdom embarks on ambitious giga projects like NEOM and Red Sea Global, the need for a seamlessly connected supply chains becomes even more critical. It’s increasingly clear that the real innovation lies not just in what it’s building, but how it’s building it.
The country’s forward-thinking approach to supply chain management is redefining the construction landscape, offering developers a competitive advantage by embedding resilience and sustainability deep into project delivery.
One of the most impactful strategies for addressing supply chain challenges in the Gulf is the strategic localization of both materials and labour. By shifting away from an overreliance on volatile international markets, this approach mitigates exposure to global disruptions, shortens delivery timelines, and significantly reduces emissions associated with long-distance transport. It also serves a broader economic agenda-supporting local job creation.
National programmes such as ‘Made in Saudi’ are accelerating this momentum by promoting local manufacturers and enabling them to compete on a global scale. Companies like Saudi Lime are already supplying key materials such as limestone to major construction projects, reinforcing the economic and environmental advantages of domestic sourcing.
Pivotal shift
The emergence of specialized manufacturers like Ashiel Lighting Technologies marks a pivotal shift. The company’s plans to establish a bespoke lighting manufacturing facility within Saudi Arabia will bring world class, advanced lighting technologies directly into the region -eliminating the inefficiencies of foreign sourcing, curbing delivery delays, and lowering energy consumption tied to overseas freight.
While international imports still dominate many segments of the supply chain, these foundational investments in local capacity signal the beginning of a long-term transformation.
Complementing these broader efforts, emerging digital technologies are revolutionizing supply chain management across the Gulf’s construction sector. Artificial intelligence (AI), identified in a recent industry survey as a key driver of transformation, is reshaping every stage of the construction process – including supply chains.
A prime example is Digital Twin Technology, endorsed by the Saudi Digital Government Authority, which enables real-time performance monitoring and smarter resource planning.
Material needs
This allows project managers to anticipate material needs more accurately and streamline logistics. At the same time, AI-powered analytics and the growing adoption of prefabricated construction methods are reducing dependence on traditional materials, helping lower project costs and significantly cutting carbon emissions.
With construction stakeholders frequently citing a lack of transparency and the need for better supplier coordination as obstacles during the construction process, local sourcing of materials and digital advancements are helping to alleviate these issues, driving a new era of collaboration.
At its core, this means building agile, data-driven relationships between developers, manufacturers, and logistics partners – where real-time communication, shared forecasting, and integrated planning replace the traditional siloed approach. In the Gulf’s rapidly evolving construction market, where sustainable materials are still gaining traction, this level of coordination is critical.
Synchronized workflows
Transparent supplier relationships and synchronized workflows help mitigate cost volatility, reduce delays, and ensure timely access to scarce eco-friendly materials.
As Saudi Arabia and its Gulf neighbours push the boundaries of what’s possible in construction, smarter, more resilient supply chains are quietly and critically becoming the cornerstone of that progress.
While challenges remain, the convergence of local sourcing, digital innovation, and stronger supplier collaboration is setting the stage for a more agile and future-ready industry. The companies that recognize this shift, and adapt accordingly, will be best positioned to lead in the region’s next chapter of growth.
