Construction

We enable clients to build the Middle East of the future.

The global construction industry is expected to exceed US$10tn by 2022. Emerging countries will generate around two-thirds of this growth, with China and India leading the pack. GCC countries are following a similar trend, and their combined construction industry is projected to surpass US$300bn by 2022.

Yet, challenges loom over this industry, including safety concerns, labor shortages, increasing costs, low localization, unsophisticated regulations, budget restrictions, procurement inefficiencies and stiff competition. Construction companies need to balance these challenges to remain competitive and prosper.

 

Why Strategy&

We are a network of international experts with years of experience in the construction industry. We are deeply rooted in the region, and our work in global construction equips us with a unique understanding of the complex GCC construction and development ecosystem.

We serve both private and public sector clients, leading transformation programs for regional and international capital project owners, contractors, and engineering, project management, building materials and facility management firms. Our experience is our guiding force. Our unmatched capabilities, coupled with our in-depth knowledge of the sector, set us apart as trusted advisors.

 

Our coverage

Capital projects owners

We work closely with capital projects and megadevelopment owners and representatives. Our valuable insight helps our partners organize their governance, operate models and deliver projects in the most cost-effective way. No matter the scope or scale, we excel at supporting client representatives in managing their largest construction programs.

Contracting

We create strategy and business plans for industry leaders. This provides the necessary support for them to optimise their procurement spend, transform operating models, reduce costs and restructure their businesses.

Engineering and professional services

We provide extensive experience in engineering and program management. We also develop growth strategy, market entry strategy and operation models for global players. This extra support helps clients better estimate schedule and project cost, oversee program governance and maximise profitability.

Building material and manufacturing

We provide expertise for on-site building materials, such as flooring, ceiling, plumbing, windows, furniture and cement. With partnerships and resources across the GCC, our planners optimise operational processes to maximise value for clients.

Facility management

We bring deep knowledge of building facility management processes and procedures to every project. Our extensive experience helps us assist leading government and private players in the region. We provide support on multiple fronts, such as helping clients define and implement operating models and develop sourcing and tendering strategies.

Digital

We help clients across the construction value chain define their digital strategy. The right digital tools can simultaneously provide solutions and prevent problems. Our teams take the newest technology to the job site: drones to avoid construction errors and simplify documentation, 3D printing to reduce design and construction times, GPS-enabled equipment for greater transparency and radio-frequency identification (RFID) to improve coordination of teams and reduce material waste.

How we can help

How we can help

Growth across the region: Case studies from the Gulf

Designing an engineering firm’s business framework

A Middle East engineering firm needed a high-level growth strategy, new operating model, organization structure, compensation scheme and governance framework to manage the migration of 6,000 full-time employees to new roles.

Strategy& studied the existing business, identified possible growth initiatives, and developed a five-year implementation plan. We designed a new organization structure, which covered more than 20 branches and design centers. We also redesigned an organization grading scheme, detailed new job descriptions, developed a new compensation structure and formed a new governance framework. We rolled out new key management processes, including financial planning, business planning and business performance monitoring.

The overseeing committee approved our recommendations, including our operating model, organization structure and compensation schemes. The firm reached its goal of implementing improved governance framework, corporate structure and management processes.

Building better procurement practices

A leading contracting company in the GCC needed to review their overall procurement processes.

After studying procurement spend data from multiple systems, Strategy& developed a procurement plan and defined procurement policies for the company. We implemented bulk buying and a new spend taxonomy tree. We helped in negotiations with suppliers, contributed valuable engineering and construction methods and conducted automated procurement spend analyses.

These efforts achieved savings of 4%-5%, streamlined procurement operations and enhanced overall capabilities.

Transforming the cement sector strategy

Several clients in the cement industry were struggling to define their distribution strategy, transform their business, and optimize operational processes.

Strategy& introduced new capabilities into the distribution strategy, identified customer segments, and formulated a commercial strategy across the distribution network. We also built a vertical integration strategy to capitalize on falling transportation costs and tap into distant markets. Finally, we recommended new sales processes for nonrecurrent clients, redesigned credit and collection practices and overhauled the invoicing process.

Delivering major Asset & Facility Management (A&FM) savings for a regional developer

A regional developer needed to revamp its facility management operation and optimize costs.

With its comprehensive understanding of the Asset & Facility Management (A&FM) sector, Strategy& studied the client’s operating model and recommended a new sourcing strategy and vendor management processes to key elements for improvement.

As a result, the client decreased its A&FM contracts from 150 to 20, which should save up to an estimated US$80mn over the next 5 years.

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Contact us

Per-Ola Karlsson

Per-Ola Karlsson

Partner, Strategy& Middle East

Marwan Bejjani

Marwan Bejjani

Partner, Strategy& Middle East

Mark Haddad

Mark Haddad

Partner, Strategy& Middle East

Camil  Tahan

Camil Tahan

Partner, Strategy& Middle East

Elias Karam

Elias Karam

Partner, Strategy& Middle East

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