Supply chain solutions in Middle East construction
The Middle East construction industry faces unique supply chain challenges that require innovative solutions and strategic collaboration.
The pressures of rapid urbanisation and ambitious infrastructure projects, and a competitive market, drive the need for efficient and resilient supply chain management. Fluctuating material costs, limited local manufacturing capabilities and complex regulations challenge supply chain dynamics in the Middle East.
At our recent roundtable, we discussed strategies to enhance supply chain efficiency and quality, the adoption of technology, and the benefits of strategic relationships and realistic timelines. Across the sector, many organisations are enhancing their procurement strategies and strengthening supply chain communication. However, proactive measures are needed to tackle the remaining challenges.
In November 2024, we brought together industry leaders to discuss how to overcome these challenges. Participants included:
- David Griffiths, Director and Head of Real Estate, UAE, Turner & Townsend
- Gerhard Van Rooyen, Director and Head of Cost Management, Abu Dhabi, Turner & Townsend
- Haady Sherif, Associate Director, Project Management, Abu Dhabi, Turner & Townsend
- Tamer Youssef ,Senior Vice President and Head of Design, Dubai and Northern Emirates, Aldar
- Lois Ackerley, Senior Manager, Business Generation, Turner & Townsend
- Ashleigh Faddes, Senior Manager Business Generation, Turner & Townsend
Balancing local and global supply chains
The discussion highlighted the need to integrate global expertise with local capabilities in the UAE. Despite market maturity, a gap between global practices and local execution calls for legislative support to ensure uniform quality and sustainability standards.
Competitive markets like Dubai and Abu Dhabi require innovative strategies to enhance return on investment while maintaining high standards.
Challenges in design and material selection
Maintaining design integrity despite cost constraints was a key focus. Limited material options often led to design compromises.
Supporting innovative designs requires broader material choices and improved supply chain management.
Quality suffers when cost savings takes priority or timelinesare rushed. Improving collaboration and communication between designers, consultants, and suppliers was recommended to ensure design quality is maintained.
Ensuring quality from suppliers
Key strategies for ensuring supplier quality focus on clear communication thorough vetting and continuous improvement.
Quality management relies on setting clear milestones, regular communication, quality audits, risk management and supplier incentives.
Effective logistics management is also vital to prevent delays. Further supplier education remains essential to maintain competitive pricing and quality standards.
Impact of accelerated project timelines
Accelerated timelines often compromise on quality. Success depends on setting realistic timelines, early supplier engagement and flexible approaches to design.
Time pressure can force reliance on readily available materials, leading to inferior quality and long-term issues.
Effective logistics management helps prevent delays while maintaining quality standards.
Leveraging technology
Technology plays a key role in enhancing supply chain efficiency and transparency. Building information modelling and artificial intelligence can streamline processes, improve communication, and ensure consistent quality across projects.
Strategic relationships and collaboration
Strategic relationships and balanced risk-sharing with suppliers are essential. Developers with robust supply chains are better positioned to navigate market challenges. Alternative procurement strategies can help mitigate risks and ensure project success. Reliable supplier relationships can strengthen project success.
The roundtable concluded that improved education across all levels of the supply chain is key to achieving competitive pricing, quality standards, design integrity and realistic project timelines.