Building Sustainable Infrastructure in a Rapidly Expanding Gulf Real Estate Market

As cities grow and skylines rise, the climate consequences of construction have become impossible to ignore. The UAE and the Gulf are at a pivotal point in building sustainable infrastructure to combat these challenges.

Sustainable InfrastructureGreen Building CodesCarbon EmissionsRetrofittingCircular EconomyReal EstateMay 23, 2025

Building Sustainable Infrastructure in a Rapidly Expanding Gulf Real Estate Market
Real Estate:As cities grow and skylines rise, the climate consequences of construction have become impossible to ignore. Globally, buildings account for roughly 39 percent of energy-related carbon emissions (about 28 percent from operational energy use and 11 percent from the materials and construction processes, i.e., embodied carbon). With the global building stock expected to double by 2050, 'upfront' carbon emissions from new construction could consume a major share of our remaining carbon budget.

The World Green Building Council has outlined clear targets: a 40 percent reduction in embodied carbon by 2030 for all new buildings, and net-zero operational and embodied carbon across the entire sector by 2050. Achieving these goals demands greener building codes, deep energy retrofits, cleaner materials, and innovative design—alongside bold leadership and coordinated policy, especially in regions experiencing construction booms.

Building Codes as Catalysts for Change

The UAE offers a valuable case study in translating vision into practice through regulation. In 2010, Abu Dhabi launched Estidama (meaning 'sustainability' in Arabic) and the Pearl Rating System, requiring all new developments to meet at least a 1 Pearl rating (2 Pearls for government-funded buildings). Unlike voluntary frameworks such as LEED or BREEAM, Estidama is embedded in law. Masdar City further raised the bar, mandating a minimum 3 Pearl rating for its buildings.

Ensuring nationwide coverage and robust enforcement will be vital to avoid a patchwork approach and unchecked high-carbon developments.

Dubai soon followed. By 2014, the Dubai Municipality's Green Building Regulations became mandatory for all new public and private buildings. In 2016, the Al Sa’fat system introduced additional incentives for high-performing projects.

Ras Al Khaimah (RAK) joined the movement with the Barjeel Green Building Regulations in 2019, making them mandatory in 2020. Barjeel aims to cut energy and water use by around 30 percent compared to traditional buildings.

While these achievements are notable, gaps remain. As of recent years, several northern emirates had yet to adopt binding green building codes. Ensuring nationwide coverage and robust enforcement will be vital to avoid a patchwork approach and unchecked high-carbon developments.

Regional Momentum: Saudi Arabia and Beyond

Across the Gulf, sustainability is rising on national agendas. Saudi Arabia's Green Building Code, introduced as part of a broader national code update, establishes minimum standards for sustainable construction. The Mostadam rating system promotes sustainability across communities and developments, aligning with the Kingdom’s ambitious Vision 2030 agenda.

Mega-projects such as NEOM, particularly 'The Line,' aim to revolutionise urban living with a 100 percent renewable-powered, zero-carbon design, preserving 95 percent of surrounding nature. Similarly, Qatar’s Global Sustainability Assessment System (GSAS) has set a benchmark for green buildings, particularly during the 2022 FIFA World Cup.

However, the challenge remains ensuring that day-to-day construction, not just flagship projects, adheres to green standards. Enforcement across thousands of projects will determine the real impact of these policies.

Private Sector Leadership and International Standards

Regulations alone are not enough. The private sector must innovate beyond compliance. In the UAE, companies such as Aldar Properties and Masdar lead by example. Aldar has set a net-zero target for its operations by 2030 and its broader value chain by 2050, investing heavily in low-carbon technologies and renewable energy.

Masdar, Abu Dhabi's clean energy pioneer, continues to demonstrate the viability of sustainable infrastructure. Masdar City’s buildings use around 40 percent less energy and water than their conventional counterparts, integrating passive cooling, renewable energy, and sustainable transport solutions. Beyond Masdar City, the company has invested in over 11 GW of renewable energy globally.

Masdar City’s buildings use around 40 percent less energy and water than their conventional counterparts, integrating passive cooling, renewable energy, and sustainable transport solutions.

International frameworks such as LEED and BREEAM have further supported regional progress. Many high-profile UAE projects, from airports to hotels, pursue LEED Gold or Platinum certification, helping the country consistently rank among the top nations outside the United States for LEED-certified projects. Blending local codes with global standards fosters a sustainability culture within the regional architecture and engineering sectors.

Beyond New Construction: Retrofitting and Circular Economy

Addressing new construction alone is insufficient. Around 80 percent of the buildings that will exist in 2050 already stand today. Many of these were built before efficiency standards were common and are inherently wasteful. For example, a Dubai study found best-performing hotels consumed 58 percent less energy and 65 percent less water than the worst-performing ones of similar size.

Retrofitting offers a huge opportunity. Upgrading insulation, sealing air leaks, modernising HVAC systems, and integrating smart controls can halve a building’s energy use. Dubai’s Etihad ESCO has retrofitted numerous buildings, achieving major efficiency gains. Similar initiatives are underway in Abu Dhabi.

In parallel, embracing a circular economy in construction is critical. Today, 10-15 percent of building materials are wasted during construction, and construction and demolition waste make up about 70-75 percent of the UAE's total solid waste. Circular strategies, including recycling concrete and steel, modular construction, and designing for disassembly can cut emissions and waste dramatically.

The UAE’s Circular Economy Policy 2021-2031 prioritises green infrastructure, emphasising renovation, better material use, and recycling targets. Companies such as Bee’ah are already advancing zero-waste-to-landfill programs, transforming construction debris into usable materials.

Frequently Asked Questions

What percentage of global carbon emissions come from buildings?

Buildings account for roughly 39 percent of global energy-related carbon emissions, with 28 percent from operational energy use and 11 percent from materials and construction processes.

What is the Pearl Rating System in Abu Dhabi?

The Pearl Rating System is a sustainability assessment system launched in Abu Dhabi in 2010 as part of the Estidama program. It requires all new developments to meet at least a 1 Pearl rating (2 Pearls for government-funded buildings).

What is the target for embodied carbon reduction by 2030 according to the World Green Building Council?

The World Green Building Council aims for a 40 percent reduction in embodied carbon by 2030 for all new buildings.

What is the Barjeel Green Building Regulations in Ras Al Khaimah?

The Barjeel Green Building Regulations, introduced in 2019 and made mandatory in 2020, aim to cut energy and water use by around 30 percent compared to traditional buildings in Ras Al Khaimah.

What is the Mostadam rating system in Saudi Arabia?

The Mostadam rating system promotes sustainability across communities and developments in Saudi Arabia, aligning with the Kingdom’s Vision 2030 agenda.

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