Middle East Buildings Face A Decisive Moment On Energy Efficiency

(MENAFN- Khaleej Times) Energy efficiency is rapidly becoming a priority across the Middle East as rising cooling demands, aging building stock and growing sustainability expectations push building owners to reassess how facilities are operated. With buildings representing a major share of global and regional energy use, even modest improvements now translate into substantial cost savings and emissions reductions.

According to Graham Easton, Managing Director of ENGIE IFM GCC, the shift reflects both environmental urgency and operational necessity. Buildings, he notes,“account for about 40 per cent of global energy use,” while in the UAE“residential buildings alone account for 39 per cent of energy consumption across all sectors.”

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Cooling loads dominate that footprint. HVAC systems typically represent half of a residential building's energy use, in part because many systems“were originally oversized, are not properly controlled, or have become inefficient over time.” Easton says a 20 per cent reduction in HVAC consumption“is both achievable and significant,” delivering around a 10 per cent drop in overall utility bills with limited investment.

The broader value of efficiency is becoming clearer to asset owners.“Improved energy efficiency reduces carbon emissions, conserves natural resources, extends the lifespan of equipment, and supports healthier indoor environments,” Easton says. With ESG expectations intensifying, efficiency now enhances“asset value, tenant satisfaction, and long‐term resilience.”

Reaching Net Zero, however, requires a structured, portfolio‐wide strategy rather than isolated upgrades.“The starting point is always understanding energy use,” Easton emphasises. Without robust baselines and audits,“Net Zero targets risk becoming aspirational rather than actionable.”

Early‐stage, low‐cost operational measures-particularly in cooling-dominated markets-build early momentum and reduce the scale and expense of subsequent retrofits. Only once buildings are performing efficiently, he says, should organisations invest in capital‐intensive upgrades like high‐efficiency chillers or envelope improvements.

Energy Performance Contracts (EPCs) are also reshaping how organisations pursue these improvements. Under an EPC, the energy services company assumes responsibility for engineering, installation, commissioning and maintenance while guaranteeing outcomes.“The main benefit is alignment: the ESCO succeeds only when the promised savings are delivered,” Easton explains. Guaranteed Savings models suit clients providing their own financing, while Shared Savings arrangements allow projects to proceed with no upfront capital, with the ESCO recouping costs through a share of savings.

Recent ENGIE programmes in the UAE illustrate the impact. A lighting and controls retrofit for power plants-valued at Dh5 million-cut annual consumption by 13 GWh from a 22 GWh baseline, generating over Dh6 million in recurring savings and achieving payback in under a year. At a major public hospital in Sharjah, ENGIE replaced 10 chillers with high‐efficiency units and integrated them via its SmartBox IoT platform. Machine‐learning models now analyse operating conditions to generate predictive asset‐health scores and maintenance insights, driving improvements beyond the hardware upgrade itself.

Advanced analytics and AI are increasingly central to scaling these gains. Easton notes that AI‐powered chiller optimisation can reduce energy use by“up to 30 per cent,” while predictive analysis cuts downtime and extends equipment life. Digital twins support scenario testing for retrofits, and cloud‐based dashboards give executives portfolio‐wide visibility, helping identify where interventions matter most. Collectively, these tools are shifting operations“from reactive maintenance to predictive and ultimately autonomous” facility management.

Still, the region faces distinct challenges: extreme climate conditions, high cooling loads, and a large inventory of older buildings lacking proper metering or controls. Fragmented operational roles further complicate optimisation. Addressing these issues requires“reliable energy baselines,” targeted HVAC interventions, performance‐based delivery models and continuous digital monitoring to maintain results despite harsh environments.

Easton stresses that success ultimately depends on leadership, prioritisation and long‐term integration. Strong governance, accurate measurement and a staged approach-from low‐cost improvements to capital upgrades-are essential. When efficiency becomes part of routine operations rather than“a one‐off initiative,” he says, organisations achieve lasting savings, emissions reductions and improved asset performance.

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