Efficio is currently involved in GCC construction projects worth USD 390 billion
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 the bankability of their capital portfolios while ensuring efficient delivery with the best value and quality from suppliers.
The consultancy is currently involved in USD 390 billion worth of GCC construction projects, a figure that is set to increase towards the end of the year as existing projects accelerate 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. As we enter the second half of the year, the demand for services and supplies is increasing significantly.
“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 delivering 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 significant 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.
He continued, “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 cash flow.”
This regional demand for specialist expertise across the supply chain ecosystem isn’t going to abate any time soon. The UAE market continues to progress steadily, 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 the best economic value possible and build 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 organisations 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 setting a clear strategy to achieve what needs to be delivered,” said David.