Middle East and North Africa Urban Planning Market

Overview

Middle East and North Africa Urban Planning Market reached US$ 3.8 billion in 2023 and is expected to reach US$ 4.9 billion by 2031, growing with a CAR of 3.2% during the forecast period 2024-2031.

Planning for resilience has become a crucial trend, especially considering the region's sensitivity to risks associated with climate change and geopolitical instability. Resilience techniques are being used by urban planners to improve cities' capacity to endure shocks and strains and bounce back. The entails creating resilient emergency response systems, planning infrastructure to endure harsh weather and guaranteeing the long-term adaptation of urban areas.

The integration of modern technology into urban planning and smart city efforts is becoming increasingly important in the MENA area. To boost resource management, develop more sustainable urban settings and increase the effectiveness of municipal services, governments are investing in digital infrastructure, Internet of Things (IoT) technologies and data analytics.

Saudi Arabia is among the growing regions in the Middle East and North Africa urban planning market covering more than 1/3rd of the market. The market for urban planning is expanding thanks in large part to government initiatives and partnerships with the business sector. Large-scale urban project funding and expertise mobilization are promoted through public-private partnerships (PPPs).

Dynamics

Rapid Growth in Population and Urbanization and also Technological Advancements and Smart City Initiatives

Rapid urbanization and significant population increase are occurring throughout the Middle East and North Africa (MENA), especially in nations like Saudi Arabia, United Arab Emirates and Qatar. Because it requires the construction of new urban areas, housing complexes and related infrastructure, this demographic growth is a major driver of the urban planning industry. It is the responsibility of urban planners to create livable, connected and sustainable cities while meeting the demands of an expanding population.

For Instance, in 2023, Artificial intelligence is being used by Bayanat, a geospatial data products and services company based in Abu Dhabi, to help the emirate's urban planning goals. With the anticipated launch of additional satellites and ongoing advancements in its sensor capabilities, Bayanat is ready to gather geospatial data "with unprecedented accuracy and detail." It supports Abu Dhabi's programs for smart cities and driverless vehicles.

Visionary Initiatives and Economic Expansion

The region's urban planning sector is being driven by economic diversification initiatives, which are best represented by bold strategic frameworks like Saudi Arabia's Vision 2031 and comparable programs in other MENA nations. By diversifying industries like real estate, infrastructure and tourism, these innovative projects seek to lessen reliance on oil earnings and promote economic growth.

Because of this, there is an increased need for thorough urban planning to build new cities, improve the infrastructure that already exists and provide settings that will draw in talent and capital from abroad. The dedication to economic diversification serves as a major motivator, encouraging urban planners to come up with creative and long-lasting solutions that complement more general economic objectives and raise the region's level of competitiveness.

Restricted Stakeholder and Public Involvement

Effective urban development in the MENA is hampered by low public participation and insufficient involvement of varied stakeholders in the urban planning process. Certain situations may involve opaque and exclusive decision-making procedures, which would keep communities from actively influencing how their cities are developed in the future.

Additionally, the limited cooperation may cause communities to become dissatisfied, which will hinder initiatives from being implemented successfully. To overcome this constraint, urban planning techniques must become more inclusive and participatory to take into account the varied needs and viewpoints of the community and incorporate them into development plans.

Concerns About Security and Political Instability

The Middle East and North Africa (MENA) political unrest and security issues are major barriers to the urban planning industry. Geopolitical tensions and ongoing wars can cause delays, uncertainty and greater risks for investors and developers while implementing planned projects.

In addition to impeding efficient decision-making and coordination between public and private parties, political instability may also negatively affect the overall success and advancement of urban planning efforts. In regions with unstable political environments, investors would grow reluctant to dedicate capital to projects, which would affect the flow of money and impede the construction of vital urban infrastructure.

Segment Analysis

The Middle East and North Africa urban planning market is segmented based on type, technology, component, deployment mode, end-user and region.

Rising Demand for Strategic Urban Planning in Urban Planning Industry

The strategic urban planning segment is among the growing regions in the Middle East and North Africa urban planning market covering more than 1/3rd of the market. Strategic urban planning is expanding rapidly in the Middle East and North Africa (MENA) due to important factors. The growing emphasis on the creation of smart and sustainable cities is one of the main causes. The MENA region's governments are realizing how crucial urban planning is to building effective, livable and ecologically sustainable cities.

The concentration on sustainability answers to the mounting issues of resource management, increased urbanization and climate change while also being in line with globally trends. To promote long-term urban growth and resilience, innovative technology, green infrastructure and energy-efficient solutions are being included in strategic urban planning projects.

Geographical Penetration

Increasing Urban Planning Industry and Rising New Projects in Saudi Arabia

Saudi Arabia has been a dominant force in the Middle East and North Africa urban planning market driven by the urban planning industry Saudi Arabia has seen innovation due to technological improvements and an emphasis on smart cities. Urban development initiatives are increasingly focusing on the integration of technology, such as digital infrastructure, IoT (Internet of Things) applications and smart transportation systems. The focus on smart urban solutions improves sustainability, efficiency and inhabitants' overall quality of life.

The demand for housing and urban infrastructure in Saudi Arabia is being driven by the country's fast population increase. The population of the nation is vibrant and growing, necessitating careful urban planning to satisfy housing demands, generate employment possibilities and provide sustainable growth. Trends in urbanization and rising economic activity support the expansion of the urban planning industry.

For Instance, in 2024, The Kingdom of Saudi Arabia is planning a new metropolitan development entitled NEOM, which means "new life" in a combination of Greek and Arabic. It is envisioned as a transnational metropolis in the nation's northwest to reduce reliance on oil and diversify the economy. With its ten unique areas, the mega development has attracted attention from all globally with its promises of sustainability and creativity.

For Instance, in 2023, Egis, a leading global engineering consultancy, has acquired Omrania, a renowned architectural and engineering consultancy in Saudi Arabia. The strategic move aligns with Saudi Arabia's Vision 2031, focusing on economic diversification and modernizing infrastructure. By integrating Omrania's local expertise with Egis's global experience, the partnership is set to contribute significantly to key projects in urban development, the built environment and cities infrastructure.

COVID-19 Impact Analysis

The COVID-19 pandemic has had a major effect on the urban planning market in the Middle East and North Africa (MENA), impacting both immediate reactions and long-term planning initiatives. Some building and urban development projects saw delays in the immediate aftermath of the epidemic as a result of lockdowns, supply chain problems and labor shortages. The caused schedule modifications and delays for the projects, which had an impact on the velocity of urban growth in the area as a whole.

The pandemic produced modifications in the MENA region's objectives for urban development as well. With a greater emphasis on public health and safety concerns, cities and municipalities had to swiftly adjust to the new conditions. The led to a review of urban infrastructure, with a focus on developing more flexible and resilient urban regions. As technology and data-driven solutions became essential in handling public health emergencies and guaranteeing effective urban operations, concepts such as smart cities attracted increased attention.

The pandemic's economic effects had an impact on financing for urban planning initiatives. Numerous MENA countries were forced to reallocate funds to meet urgent healthcare requirements and offer financial assistance. The amount and breadth of urban development programs may change as a result of this funding reallocation, with a possible emphasis on measures that support job creation and economic recovery.

Positively, the pandemic highlighted how crucial green areas, eco-friendly architecture and robust infrastructure are to urban development. With the lessons learnt from the epidemic incorporated into their long-term planning plans, cities in the MENA area can now prioritize making their surroundings healthier and more habitable.

Russia-Ukraine War Impact Analysis

The urban planning industry in the Middle East and North Africa may be indirectly impacted by an Eastern European crisis, such as a war between Russia and Ukraine. Because the world economy is interrelated, geopolitical developments frequently have repercussions on some industries, including urban development and infrastructure.

Furthermore, the war may affect the flow of investments and cooperation in the Middle East and North Africa (MENA) if it leads to increased geopolitical tensions or changes in alliances. The market for urban planning frequently depends on foreign investments, technological transfers and global partnerships. The implementation of urban development projects may be impacted by any interruption in global relations that slows down or redirects these flows.

Increasing the instance that the war has an impact on global supply chains, certain MENA nations may profit from a rise in demand for commodities like gas and oil. In certain cases, this may result in higher income, which would provide such countries with more money to spend on urban planning and development projects. The real impact would, of course, depend on the particular dynamics of the war and the reaction of the international community.

By Type

• Strategic Urban Planning
• Land-Use Planning
• Master Planning
• Urban Revitalization
• Economic Development
• Environmental Planning
• Infrastructure Planning

By Technology

• Computer-Aided Design (CAD) Software
• Generative AI
• Building Information Modeling (BIM)
• Emerging Technologies
• 3D Modeling and Visualization
• Others

By Component

• Service
• Software

By Deployment Mode

• Cloud-Based
• Web-Based

By End-User

• Residential
• Commercial
• Industrial
• Municipal
• Others

By Country

• MENA
  • Saudi Arabia
  • UAE
  • Oman
  • Bahrain
  • Qatar
  • Kuwait
  • Egypt
  • Iran
  • Iraq
  • Israel
  • Rest of Middle East and North Africa

Key Developments

• On July 05, 2023, The Middle East and North Africa invested US$ 500 billion in urban regeneration projects. Redesigning older sections of towns and cities is deemed a "necessity" by the paper if governments hope to see population growth in urban centers. It specifically mentions Saudi Arabia's goal of doubling Riyadh's population by 2031.

Competitive Landscape

The major global players in the market include AECOM, Autodesk Inc., Bentley Systems, Boston Consulting Group, Esri, SketchUp, Stantec, Parsons Corporation, Dar Al Handasah and Khatib & Alami.

Why Purchase the Report?

• To visualize the Middle East and North Africa urban planning market segmentation based on type, technology, component, deployment mode, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of urban planning market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The Middle East and North Africa urban planning market report would provide approximately 48 tables, 56 figures and 176 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies