Stunning night view of Doha skyline seen through decorative archways, reflecting vibrant city lights. by bilal findikci via pexels
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Rethinking building performance in an age of energy volatility
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Energy is no longer just a cost to manage; it is becoming a defining factor in how assets perform and how portfolios are valued.
According to Abdulrahman Alhabashi, ISRM KSA chapter vice chair, “Energy volatility is no longer a background concern for the real estate sector; it is becoming a material risk to long-term asset performance. Disruptions across global supply chains and energy flows are creating a more precarious outlook, where power availability, cost exposure, and resilience are increasingly defining competitiveness and value.”
Current geopolitical tensions continue to reshape global energy markets. Their impact is being felt far beyond supply chains and national economies. In the Middle East, where energy has historically supported economic growth and development, this evolving landscape reinforces a key reality: energy can no longer be taken for granted as stable or predictable, but must be understood within a broader, increasingly dynamic global context.
As Mohammed Chilmeran, a senior analyst at Wood Mackenzie, highlights: “Energy market volatility, amplified by conflict in the Middle East and broader geopolitical tensions, is likely to remain elevated in the near term, forcing investors to reprioritize security of supply, optionality in routes and feedstocks, and balance-sheet resilience across energy-dependent assets.”
Volatility in global energy markets is no longer a distant concern; it is now a daily operational reality. This is translating into real economic pressure worldwide, influencing government spending, private sector margins, and long-term investment strategies. In my work across large-scale developments in the Middle East, this shift is already visible, with stakeholders placing increasing emphasis on operational resilience, energy transparency, and long-term cost control.
The Middle East is undergoing one of the most ambitious development phases globally, with large-scale infrastructure, hospitality, tourism, and urban projects being delivered at an unprecedented pace. From giga-projects in Saudi Arabia to expansive urban developments across the GCC, the region is positioning itself at the forefront of global development in both scale and delivery.
This momentum brings significant opportunity, alongside a growing need to manage energy-related considerations effectively. As asset portfolios expand in size and complexity, the importance of actively managing performance across their lifecycle continues to grow.
Within this context, the built environment plays a critical role. Ensuring the long-term performance and efficiency of these assets is essential — not only from a sustainability perspective, but also from an economic and operational standpoint. Buildings are long-life assets, and decisions made today will shape their performance for decades to come.
The challenge is no longer limited to energy availability; it increasingly lies in how energy is managed and optimized during operations.
For conventional buildings, the implications are immediate and measurable. Energy performance directly influences operating costs, carbon emissions, and overall asset efficiency. Across large portfolios, even incremental improvements can deliver meaningful financial and environmental benefits over time.
Ultimately, in a world where energy is no longer stable, the real differentiator is not how buildings are designed, but how intelligently they are operated over time.
Ahmed Yousif
For iconic and large-scale developments, the stakes are even higher. Beyond operational performance, there is a clear priority to protect and enhance long-term asset value. These projects represent substantial capital investment and are often closely tied to national visions and global positioning. Sustaining high levels of performance through effective energy management supports both their economic value and intended legacy.
Addressing both requires a more strategic approach to asset management — one that goes beyond initial design and construction to focus on lifecycle performance. This means integrating continuous monitoring, optimization, and data-driven decision-making into day-to-day operations. Rather than viewing buildings as static deliverables, they should be understood as dynamic systems that evolve over time, benefiting from active management to sustain efficiency, resilience, and long-term value in an increasingly complex energy landscape.
Buildings are among the largest consumers of energy, particularly in regions where extreme climate conditions drive continuous cooling demand. In many cases, buildings account for over 30-40 percent of total energy consumption, with cooling systems representing the dominant share.
Yet despite their significance, many assets still operate without a detailed understanding of how energy is consumed at the system or equipment level. In practice, this often results in limited visibility, fragmented data, and missed opportunities for optimization — despite the growing potential to leverage detailed insights for real-time efficiency gains.
The implications are significant. Even small inefficiencies, when considered across large-scale developments or entire portfolios, can translate into substantial cost impacts. At the same time, enhanced visibility supports more informed decision-making, helping operators and owners better navigate energy price dynamics and strengthen long-term cost control. In this context, improving energy performance is not only a technical consideration, but a strategic opportunity.
Today, advanced monitoring and analytics technologies are widely available and more cost-effective than ever before. What was once limited to highly specialized applications is now accessible across a broad range of asset types. These technologies enable real-time monitoring, predictive analytics, and data-driven performance enhancements at a rapidly evolving scale.
From identifying inefficiencies in cooling systems to optimizing energy use across entire portfolios, these solutions support a transition toward more proactive, value-driven decision-making. Instead of responding to issues after they occur, stakeholders are increasingly able to anticipate, diagnose, and address inefficiencies early—supporting both performance and reliability.
Importantly, the barrier to entry is no longer technological or financial. The tools exist, and they are increasingly accessible. The focus now is on awareness, education, and the ability to effectively implement and integrate these solutions into existing operations. This requires not only technical capability, but also a shift in mindset—recognizing energy management as a strategic lever for value creation.
In a region defined by ambition and rapid development, those who embed energy intelligence into their assets today will be well positioned to navigate uncertainty, enhance value, and contribute to the next phase of sustainable growth.
Ultimately, in a world where energy is no longer stable, the real differentiator is not how buildings are designed, but how intelligently they are operated over time.
• Ahmed Yousif is regional director, Middle East and North Africa at BEE Incorporations.
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