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How sustainable materials and AI are shaping NEOM, Masdar City, and Dubai’s new developments

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The Dubai Beach EDITION Hotel and Residences at Dubai Harbour by Shamal Holdings



NEOM, Masdar City and Dubai, cities that have long been a symbol of wealth and ambition, are not just building new skylines, they’re attempting to redefine what a city can be. With construction sector being one of the largest contributors to global emission, Middle East, flush with capital, ambitious projects, and new masterplans is testing a simple hypothesis: Can the region radically lower the carbon and resource footprint of entire cities through sustainable materials and Artificial Intelligence (AI)?

Dr. Vahid Razaviarani, Global Programme Director,
MSc Global Sustainability Engineering
Heriot-Watt University

Governments and developers, in the Gulf, are shifting policies and procurement practices toward low-embodied-carbon alternatives: recycled aggregates, low-carbon concrete, engineered timber, high-performance insulation and off-site modular systems that dramatically cut waste. According to Grand View Research, in 2024, the global green building materials market was estimated to be worth hundreds of billions of dollars, and it is forecast to grow. Moreover, the GCC green building materials market alone reached an estimated USD 10.6 billion in 2024 and, according to an IMARC Group report, is expected to grow significantly as demand for sustainable inputs scales up.

NEOM’s energy and utilities arm, Enowa, explicitly emphasises circular systems and positions the project as a 100%renewables-powered ecosystem that integrates water, energy and industrial systems from the outset. It combines Industry 4.0 technologies with circular economy principles that force the choice of materials toward those that can be reused or easily recycled, while promoting off-site fabrication techniques that shrink construction waste.

For more than a decade, Masdar City has been offering a working prototype of what happens when sustainable material choices meet a systems approach, translating low-carbon urban design into practice. It pairs demonstrable clean energy capacity with district cooling systems, solar generation, and energy-efficient building envelopes with planning that reduces transport demand. Masdar’s broader organisation, its parent group, has also been scaling fast. Its report highlighted growth in clean energy capacity and an organisational push into integrated, low-carbon urban projects. The Masdar model is a reminder that reliable renewable supply makes higher-embodied, energy-intensive solutions (for example, electric construction equipment charged by renewables).

But materials alone won’t be enough, this is where AI becomes a multiplier. AI tools now enable topology optimisation for material efficiency, predict and prevent waste by logistics algorithms (supply chain forecasting, demand matching). In operations, machine learning drives HVAC optimisation (manage buildings in real time, predictive maintenance). For projects on the scale of NEOM or Masdar, with thousands of buildings, millions of square meters and complex infrastructure, AI systems can turn millions of data points into continuous efficiency gains.  NEOM and related initiatives are already integrating AI for water, energy and materials planning, while Oxagon’s industrial model assumes broad adoption of automation and AI in production.

Dubai’s trajectory shows how regulation and market amplify these technological shifts and incentives accelerate adoption. Municipal green building regulations, alongside certifications such as LEED and local green building systems, have driven a rapid uptake of sustainable construction practices, pushing developers to pursue energy-efficient envelopes, reduced water use, and green materials. According to Dubai Municipality, the city’s policy environment, paired with developers’ appetite for premium assets that offer lower operating costs and resilience to climate risk, creates an ecosystem where sustainable materials and smart building systems are not only environmentally desirable but financially sensible.

The Grand View Research estimates show the Gulf’s green-building sector and related materials markets expanding rapidly, with market valued in the mid-to-high tens of billions of dollars and forecast to double-digit compound annual growth rates in the coming five years. That inflow of capital matters because sustainable materials often carry higher up-front cost but deliver lower lifecycle costs, while AI and automation substantially reduce construction and lifecycle operating overruns. In other words, together they improve the return profile for long-term investors.

Yet ambition collides with practical constraints. Supply chains for low-embodied materials must scale quickly; while those in the region remain sensitive to cost, logistics, and local standards. Skilled labour in advanced assembly and data-science expertise to drive AI systems are limited and must be cultivated. Governance questions are also pressing: who owns the data generated by smart urban systems, how is privacy protected, and how do we ensure that AI allocates resources such as water, energy and mobility fairly. These are governance design problems, solvable, if tackled deliberately.

There are three pragmatic approaches for solving them. First, governments and project sponsors can accelerate local manufacturing of green materials through incentives and public-private partnerships. Second, procurement rules should favour lifecycle carbon and circularity over the lowest upfront price; that shifts incentives toward durable, reusable materials and off-site fabrication. Third, data-governance frameworks must be established from the outset: transparent rules about ownership and enable third-party innovation without commercial capture.

If NEOM, Masdar City and Dubai’s new districts can scale these approaches, the payoff will be tangible: lower lifecycle emissions, less construction waste, healthier indoor environments, and long-term savings for investors and taxpayers. The Middle East can move beyond being a market for imported technology to becoming a global crucible for sustainable urban practices, provided policymakers, developers and technologists align incentives and share data and best practices.

NEOM, Masdar and Dubai’s new districts are more than national statements; they are testbeds whose lessons could reshape how cities are built globally. If they get it right, prioritising lifecycle outcomes, scaling green materials, and embedding AI from design to operations, Middle East will be measured not only in square metres and skylines, but in the tonnes of embodied carbon avoided and the megabytes of intelligence that keep cities efficient and humane. The world will, for once, be watching not only to admire, but to learn.

Tech Features

FROM SMART GRIDS TO SMART CITIES: THE NEXT PHASE OF URBAN INNOVATION

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Dr Fadi Alhaddadin, Director of MSc Information Technology (Business), School of Mathematical and Computer Sciences, Heriot-Watt University Dubai

Urbanisation is accelerating at an unprecedented pace, placing immense pressure on cities to become more efficient, sustainable, and resilient. Today, urban areas account for most of the global energy consumption and greenhouse gas emissions, making them central to addressing climate and resource challenges. In response, cities around the world are transitioning from traditional infrastructure systems to advanced, technology-driven models. The evolution from smart grids to fully integrated smart cities marks a new phase of urban innovation.

At the core of this transformation lies the smart grid. Unlike standard energy systems, smart grids use digital communication technologies to enable real-time interaction between energy providers and consumers. This two-way communication allows for more efficient electricity distribution, improved demand management, and the seamless integration of renewable energy sources such as solar and wind. As a result, smart grids not only reduce energy waste but also enhance reliability and support decentralised energy systems. They form the foundational layer upon which broader smart city systems are built.

However, the true power of smart cities emerges from the convergence of multiple technologies. The Internet of Things (IoT), artificial intelligence (AI), and big data analytics work together to create highly interconnected urban environments. IoT devices ranging, from sensors and smart meters to connected infrastructure continuously collect data on various aspects of city life, including energy usage, traffic flow, air quality, and public services. This data is then analysed by AI systems, which generate insights and enable real-time decision-making.

Through AI-driven analytics, cities can predict energy demand, optimise transportation networks, and detect infrastructure issues before they escalate. For example, intelligent traffic management systems can reduce congestion and emissions by dynamically adjusting traffic signals based on real-time conditions. Similarly, predictive maintenance systems can identify potential failures in utilities or transportation networks, minimising disruptions and reducing operational costs.

One of the most significant benefits of smart city technologies is their contribution to sustainability. Energy-efficient buildings equipped with smart systems can automatically regulate lighting, heating, and cooling based on occupancy and environmental conditions. Smart transportation solutions, including connected public transit and electric mobility systems, help reduce carbon emissions and improve urban mobility. Furthermore, integrated resource management systems enable cities to optimise the use of energy, water, and other essential services, supporting a more sustainable urban ecosystem. A notable example in the Middle East is Masdar City, which has been designed as a sustainable urban development powered by renewable energy and smart technologies. The city integrates energy-efficient buildings, smart grids, and intelligent transportation systems, demonstrating how digital innovation can support low-carbon urban living.

The Middle East is increasingly positioning itself as a global leader in smart city development through ambitious national strategies and large-scale projects. In Dubai, smart city initiatives focus on digital governance, artificial intelligence, and integrated urban services to enhance efficiency and citizen experience. Similarly, Saudi Arabia’s NEOM project represents a transformative vision of a fully automated and sustainable urban environment powered by advanced technologies. These initiatives highlight the region’s commitment to leveraging innovation to address urban challenges and drive future economic growth.

Beyond environmental benefits, smart cities are designed to enhance the quality of life for their residents. Digital platforms enable more accessible and efficient public services, from healthcare to administrative processes. Smart health systems can improve patient care through remote monitoring and data-driven diagnostics, while intelligent safety systems enhance security through real-time surveillance and rapid emergency response. These advancements contribute to more convenient, inclusive, and liveable urban environments.

Resilience is another critical dimension of smart cities. As urban areas face increasing risks from climate change, natural disasters, and infrastructure strain, the ability to adapt and respond effectively becomes essential. Smart grids play a key role in enhancing energy resilience by supporting decentralised power generation and rapid recovery from outages. Meanwhile, data-driven systems allow city authorities to anticipate and prepare for potential disruptions, improving overall crisis management and response capabilities.

Despite their many advantages, the development of smart cities is not without challenges. The integration of interconnected systems raises concerns about cybersecurity and data privacy, as large volumes of sensitive information are collected and processed. Additionally, the high cost of implementing advanced infrastructure and the need for standardised systems can pose significant barriers. Addressing these issues requires strong governance, clear regulatory frameworks, and collaboration between governments, private sector stakeholders, and technology providers.

In conclusion, the transition from smart grids to smart cities represents a fundamental shift in how urban environments are designed and managed. By leveraging the combined capabilities of IoT, AI, and data-driven infrastructure, cities are becoming more efficient, sustainable, and resilient. This transformation is not only redefining urban systems but also shaping the future of how people live, work, and interact within cities. As this evolution continues, smart cities will play a crucial role in addressing global challenges and improving the overall quality of urban life.

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Tech Features

WHEN UNCERTAINTY TESTS THE REAL OPERATING VALUE OF AUTONOMOUS AI TEAMS

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By Alfred Manasseh, Co-Founder and COO of Shaffra

For much of the past two years, AI has been discussed mainly in terms of pilots, productivity, and experimentation. But in moments of uncertainty, the conversation changes. This is when AI needs to move beyond pilots and into execution. When pressure rises, what matters most is speed, consistency, and coordination. The real question is whether institutions have the operational capacity to respond clearly, maintain continuity, and support decision-making under pressure.

In the UAE, that question carries particular weight because resilience, proactiveness, and digital by design have already been established as national priorities. This is no longer a futuristic idea. It is already being implemented across institutions.

This is why the conversation is moving beyond AI as a surface-level capability and closer to the operating core of institutions. In 2024, UAE federal government entities processed 173.7 million digital transactions and delivered 1,419 digital services, with user satisfaction reaching 91%. Once millions of people are interacting with digital systems, resilience depends not only on keeping platforms online, but on making sure information flows remain clear, response times hold steady, and service quality stays consistent under pressure.

Filtering signal from noise

In high-pressure environments, the first challenge is information overload. Fake information, true information, public questions, updates, and warnings all arrive at once, and institutions have to respond without adding confusion. Human teams remain essential because judgment and accountability must stay with people. But people alone cannot process that volume of information at the speed now required.

This is where Autonomous AI Teams become operationally valuable. AI is effective at dealing with large amounts of data, identifying patterns, and helping institutions filter signal from noise. Used properly, that gives leadership a stronger basis for communicating clearly, responding faster, and addressing confusion before it spreads.

Why governed systems hold up

Good governance is what makes AI dependable in sensitive moments. It is not only about speed. It is about consistency in messaging, consistency in how citizens and residents are served, and making sure people are well-informed. In uncertain situations, the public does not only need information. It needs information that is clear, timely, and trusted. Governed AI helps institutions provide that support without losing control or passing ambiguous situations with false confidence.

This is particularly relevant as research has found that six in 10 UAE employees use AI in their daily jobs, while IBM reported that 65% of MENA CEOs are accelerating generative AI adoption, above the global average of 61%.

The UAE can lead this shift because it is building around digital capacity at every layer, from infrastructure to service delivery to workforce readiness. The Digital Economy Strategy aims to raise the digital economy’s contribution significantly by 2031, while broader trade guidance has also framed the ambition as growing from 12% of non-oil GDP to 20% by 2030.

Working model in practice

This is also where Shaffra offers a practical example of how the model is changing. Through its AI Workforce Platform, Shaffra’s Autonomous AI Teams are already saving more than two million manual work hours per month and reducing operational costs by up to 80%. These systems can monitor inbound activity, classify issues, support fraud reviews, prepare draft responses for approval, and help institutions listen at scale to recurring public concerns.

In Shaffra deployments more broadly, this model has also delivered significant time and cost efficiencies across enterprise operations.

That does not replace leadership or human judgment. AI and humans play different roles, and the real value comes when they work together. It gives institutions stronger operational support, with greater speed, consistency, and control when pressure is highest. In the years ahead, the strongest organisations will be the ones that move beyond AI as a productivity tool and build it as a governed resilience layer that stays reliable when uncertainty tests every process around them.

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Cover Story

AI Moves from Experiment to Essential in UAE’s Advertising Landscape

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By Srijith KN, Senior Editor, Integrator
From content creation to media buying, artificial intelligence is quietly reshaping how campaigns are built, delivered, and optimised across the GCC.

In the UAE and across the GCC, artificial intelligence has moved well beyond the stage of experimentation. What was once a buzzword discussed in boardrooms is now deeply embedded in the day-to-day execution of advertising. Brands are no longer testing AI—they are relying on it to run campaigns, generate content, and make increasingly precise decisions about audience targeting and timing.

On the creative front, the shift is particularly visible. AI-powered tools are now capable of producing ad copy, visuals, and even short-form video content at a pace that would have been unthinkable just a few years ago. For marketers operating in a market like the UAE—where campaigns often need to speak to audiences in both English and Arabic, while also resonating across a diverse mix of nationalities, this level of speed and adaptability is more than a convenience. It is becoming a necessity.

Behind the scenes, machine learning has also transformed how media buying is approached. Traditional methods that relied heavily on instinct or retrospective performance reports are steadily being replaced by systems that analyse audience behaviour in real time. These platforms continuously optimise campaign performance, adjusting budgets and placements based on how users interact with content.

In the UAE’s PR ecosystem, brands are already leveraging platforms such as Meltwater, Brandwatch, and Sprout Social to better understand media performance, audience sentiment, and the broader buying landscape.

A practical example of this shift can be seen in platforms like Skyscanner, where advertising systems respond dynamically to user intent. Instead of targeting broad demographic groups, campaigns are triggered by actual search behaviour and travel patterns, allowing for more relevant and timely engagement.

AI is also influencing emerging advertising formats. Digital billboards, for instance, are becoming more responsive, using live data inputs to tailor content based on factors such as time of day, location, and audience movement. Similarly, augmented reality experiences are beginning to incorporate behavioural insights, offering more contextual and interactive brand engagements.

Looking ahead, the trajectory appears clear. Advertising is moving towards deeper automation, more intelligent recommendations, and tighter integration between creative tools and analytics platforms. The industry is shifting from a model centred on broadcasting messages to one that focuses on responding to audiences in real time, with context and precision.

In this evolving landscape, AI is no longer just an enabler, it is becoming the foundation on which modern advertising is built.

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