Saudi Arabia’s largest Net Zero asset is already built
Haytham Ayoub, Principal Sustainability Consultant at Cundall says the focus is shifting from new construction to optimising existing assets
New developments often take the spotlight, but the Kingdom’s greatest Net Zero opportunity already exists within its current building stock. As Saudi Arabia advances towards its 2060 Net Zero target, the focus is shifting from new construction to optimising existing assets.
This direction is reinforced by national policy. The Saudi Green Initiative, a cornerstone of Vision 2030, prioritises energy efficiency and carbon reduction, while the Saudi Energy Efficiency Center continues to advance frameworks such as the Energy Conservation Building Code. Alongside this, Mostadam certification, administered by the Ministry of Municipal, Rural Affairs and Housing, provides a structured pathway to improve the performance of both new and existing buildings.
The real Net Zero opportunity is already built
Buildings are silent emitters. According to the International Energy Agency (IEA), the existing built environment accounts for nearly 40% of global energy-related carbon emissions, and many remain inefficient and energy hungry. At the same time, the World Bank estimates that up to 75% of today’s buildings will still be in use by 2060.
In cities such as Riyadh and Jeddah, this means that today’s offices, hotels, and residential towers are not just part of the urban landscape, but long-term climate commitments, which is a point often overlooked. As energy costs rise and ESG-driven tenants increasingly favour efficient, green-certified spaces, outdated buildings risk becoming both an environmental burden and a commercial liability for asset owners and tenants alike.
The scale of the opportunity is significant. Much of this building stock predates modern energy efficiency standards. Internal analyses by Cundall’s sustainability team suggest that over 70% of commercial and residential buildings in Saudi Arabia fall into this category, often characterised by inefficient HVAC systems, poor insulation, and outdated lighting. This is not a marginal issue. It represents a significant portion of the Kingdom’s existing built environment and, therefore, the most immediate pathway to meaningful emissions reduction.
The starting point is energy
Operational performance typically accounts for the vast majority of a building’s lifetime emissions. Studies from the UK Green Building Council indicate that as much as 85% of emissions stem from day-to-day operations, with HVAC systems alone responsible for 60–70% of total energy consumption. Improving how buildings perform in use is therefore the most direct route to reducing both carbon and cost.
Retrofitting provides a scalable and commercially viable solution.
At the most accessible end, optimisation measures such as HVAC fine-tuning and smart controls can deliver energy savings of up to 26%, often with payback periods of less than two years. Targeted upgrades, including LED lighting, high-performance glazing films, and water-efficient fixtures, can increase savings to around 37% while enhancing asset quality and tenant appeal.
For assets reaching 15 to 25 years of age undergoing major capital works, deep retrofit solutions offer the greatest impact. By rethinking the original design strategy for an older building with the application of modern design tools and capability more significant upgrades can be achieved beyond the standard equipment replacement cycles or refurbishment programmes. Building owners can achieve energy reductions of up to 65% while future-proofing long-term performance and maximising asset value.
The financial case is equally compelling. Regional studies such as Energy Efficiency in the GCC Built Environment 2024 by the GCC Supreme Council for Energy indicate that deep retrofit projects can achieve internal rates of return between 15% and 25%, with payback periods typically ranging from 4-to-8 years. These are not marginal gains, but high-value capital improvements that directly enhance net operating income.
This is already being demonstrated in practice. The retrofit of the King Abdullah Petroleum Studies and Research Center (KAPSARC) in Riyadh achieved a 27% reduction in annual energy consumption through a combination of HVAC optimisation, lighting upgrades, and envelope improvements, with a payback period of 6-years. This is a clear example of how sustainability and financial performance can align in the Kingdom.
Your blueprint starts with a roadmap, not a wrecking ball
Importantly, retrofitting does not require disruptive, large-scale intervention from the outset. The most effective strategies are aligned with a building’s natural lifecycle, whether through lease renewals, system replacements, or changes in facility management. A structured roadmap, beginning with a detailed energy audit and followed by phased implementation, allows building owners to prioritise quick wins while planning for deeper upgrades over time.
Saudi Arabia’s Net Zero ambitions will not be achieved through new developments alone. They will be realised by transforming the performance of existing assets at scale.
The buildings that will define the Kingdom’s low-carbon future are already standing. The opportunity now is to unlock their full potential, turning them into high-performing, efficient, and resilient assets that align with both national priorities and evolving market expectations.
