Dr Matthew Marson, Managing Director of Technology Consulting at JLL, tells AB Majlis why Dubai’s smart-city technology could add $6.9bn to its economy and why technology is becoming investable infrastructure
Smart cities have long been presented as visions of the future. For Dr Matthew Marson, Managing Director of Technology Consulting at JLL, the conversation must now become commercial.
“Smart-city technology has often been treated as experimental,” Marson told AB Majlis. “Cities have run pilots, but the investment has not always been assessed with the same discipline as other infrastructure.”
JLL’s Smart cities, smart investment? report examined seven technology applications across Dubai, Riyadh, London, New York and Hong Kong. Its modelling suggests they could increase Dubai’s GDP by as much as 6 per cent over ten years, equivalent to approximately $6.9bn. Riyadh’s potential gain is almost $16bn.
For Marson, the figures show that the technology has matured. It can be measured through costs, returns, payback periods and its contribution to the wider economy.
“It is about asking what value it creates, who receives that value and how the investment can be structured,” he said.
Strong returns
The research found that technology is frequently miscategorised as experimental spending rather than an investment capable of generating returns. Its economics also vary greatly by location, according to energy prices, transport patterns and existing infrastructure.
Cities cannot expect results simply by buying technology. “There is no free lunch,” Marson said. “Greater gains depend on deploying and operating it properly.”
The seven areas studied include AI-powered energy analytics, citizen-experience and e-government platforms, indoor-air-quality systems, intelligent street lighting, seamless journeys, smart construction and waste optimisation.
Seamless journeys, for example, would connect rail, ride-hailing, parking and building access, reducing friction for residents while improving the efficiency of urban transport.
Marson believes AI-powered energy analytics is the clearest starting point. Buildings may require sensors and connected platforms, but the impact can be measured quickly through lower energy use and operating costs. Those savings can finance further technology.
Adoption is not purely a financial challenge. Real-estate operators are being asked to become technology operators without always possessing the necessary skills. There can also be a split incentive: an owner pays for an energy system while the tenant receives the lower bill.
The Gulf may have an advantage because many large developers retain and operate their assets. This makes it easier to capture the benefits and justify the expenditure.
New districts
Riyadh’s scale and pace of development create a different opportunity. Technology can be designed into new districts from the outset rather than added later. Dubai already possesses sophisticated infrastructure, so future investment will often involve retrofitting, replacing or connecting existing systems.
Riyadh has more greenfield development, allowing technology to be embedded across a large area. Its potential ten-year GDP uplift is around 3 percent, but the absolute value is greater because of the Saudi capital’s scale.
Marson also sees a new investment category emerging. Investors could provide upfront capital and earn returns from savings or revenue over ten or 20 years. A smart-city bond could finance a portfolio of technologies instead of one pilot.
Such structures require clear performance data and transparency over which benefits generate investor returns and which are distributed across the city.
“If technology can produce predictable savings and measurable economic outcomes, there is no reason it should remain confined to an innovation budget,” Marson said. “It can become infrastructure that institutional capital is willing to finance.”
If a city leader could select only one investment, Marson would choose AI-powered energy analytics. Its business case is measurable, its savings can begin relatively quickly and a successful deployment can build support for more ambitious projects.
“Smart-city technology should not be judged by how impressive it looks in a demonstration,” he said. “It should be judged by whether it improves the city, strengthens its economy and creates lasting value for the people who use it.”
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Autor(en)/Author(s): Justin Harper
Dieser Artikel ist neu veröffentlicht von / This article is republished from: Arabian Business, 02.10.2026
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