Across Europe, construction innovation often slows at the very moment it should scale. Whether it’s modular timber systems, robotics, or artificial intelligence (AI)-enabled solutions, too many breakthroughs get stuck in fragmented pilots and slow-moving procurement, said an industry expert.
Meanwhile, Saudi Arabia is undergoing a historic transformation - its Vision 2030 agenda driving over $1 trillion in construction investment.
From NEOM to Qiddiya, The Red Sea Project and Diriyah Gate, the country’s appetite for innovation is not just rhetoric - it’s policy, stated Vladimir Vlahovic, the Founder of Solventry, a Austrian consultancy specialising in building construction spinoffs, joint ventures and innovation strategies.
Vlahovic believes Saudi Arabia’s construction sector should leverage spinoffs and JVs to accelerate innovation. It highlights how Saudi-European partnerships are helping turn proven technologies into industry benchmarks.
European firms often struggle to scale innovation at home. Regulatory complexity, fragmented approvals, and a risk-averse procurement culture make internal spinoffs and ConTech startups hard to sustain.
By contrast, Saudi Arabia offers: A long-term investment horizon; Government-driven localisation incentives and Mega-projects that are open to proven, yet under-deployed technologies.
For firms looking to break out of the pilot trap, Saudi Arabia offers a testing ground at unprecedented scale, he stated.
Austria’s Rhomberg Group created CREE GmbH to bring its hybrid timber modular system to market. Despite strong sustainability credentials and technical reliability, adoption in Europe remained limited.
In 2023, Portuguese contractor Casais became a shareholder in CREE. By 2025, Casais partnered with Saudi-based Nahaz Investment Group to launch Casais Entirez, a JV focused on delivering modular, sustainable buildings aligned with Vision 2030.
In December 2024, the NEOM Investment Fund partnered with Denmark’s GMT Robotics to bring robotic automation into rebar cage assembly - one of the most labour-intensive and hazardous activities in construction, said Vlahovic.
GMT’s robotic systems enable high-precision off-site fabrication, reducing on-site labour by up to 90% and improving safety and speed.
This collaboration aligns with NEOM’s goal to establish new global standards for industrialised construction.
Although already present in the region, German tower crane manufacturer Wolffkran entered into a joint venture with Saudi Arabia’s Zamil Group in early 2024 to establish a local manufacturing facility in Riyadh.
The JV will produce 300 cranes to support the Kingdom’s growing construction needs.
These case studies demonstrate a clear pattern: when European innovation meets Saudi delivery ambition, well-structured partnerships enable scale.
According to Vlahovic, properly designed JVs and spinoffs offer operational autonomy with corporate support; shared investment risk and accelerated market entry as well as localisation, cultural integration, and long-term scalability.
Some of the key success factors for joint ventures in Saudi Arabia include:
*Strategic Fit – Solutions must address Vision 2030 priorities such as digital infrastructure, housing, industrialisation, and automation.
*Operational Autonomy – JV teams should lead market strategy, client relationships, and execution—without excessive oversight from parent firms.
*Cultural Integration – Partnerships must blend startup agility with corporate discipline and combine international standards with local insight.
Vlahovic pointed out that Saudi Arabia was not just building cities - it was also redefining how construction should be delivered.
"With Vision 2030 and the 2034 FIFA World Cup driving record-breaking investment, the demand for scalable, tech-enabled construction delivery is growing rapidly," he stated.
For Europe’s innovators, the kingdom offers a rare chance to deploy, validate, and scale technologies through structured joint ventures and spinoffs, he added.-TradeArabia News Service
