A new analysis by the BUILD_ME initiative has revealed the significant macroeconomic potential of energy-efficient (EE) buildings across Egypt, Jordan, and Lebanon—showcasing how targeted investment in building efficiency can drive long-term savings and economic benefits across the Middle East and North Africa (MENA) region.
According to the study, for every $1.08 invested in energy efficiency, up to $7.56 could be saved in the future through reduced energy use, lower healthcare costs, and increased economic productivity.
The BUILD_ME report identifies 14 key co-benefits of energy efficiency, including improved public health, job creation, reduced emissions, and decreased reliance on energy subsidies. The financial projections are based on five of those benefits: energy cost savings, healthcare expenditure reductions, improved indoor comfort, lower public subsidies, and job growth.
Among the countries assessed, Egypt stands to save over $19.4 billion by reducing energy costs, improving workforce productivity, and mitigating health impacts tied to air pollution. Lebanon, where high energy bills and reliance on diesel generators persist, could save up to $24.8 billion by advancing energy-efficient residential construction. Jordan, with its smaller population and energy base, could still unlock savings of $2.7 billion.
Beyond the headline numbers, the full economic opportunity could be even greater if the remaining benefits are factored in. The report also points to improved indoor environmental quality as a key outcome of EE adoption, with links to better health and productivity outcomes.
“Egypt, Jordan, and Lebanon offer a snapshot of a much larger trend unfolding across MENA,” said Donatas Karčiauskas, CEO of Exergio, a company developing AI-powered tools for optimizing energy use in commercial buildings.
“We see similar dynamics in Oman and other Gulf countries, where extreme temperatures, growing cities, and strained energy systems are forcing to rethink how buildings are designed, renovated, and managed.”
This regional shift is being reinforced by policy momentum. Egypt introduced updated energy efficiency standards for appliances in early 2024, while Jordan’s Third National Energy Efficiency Action Plan (2024–2026) targets multiple sectors. Lebanon, meanwhile, is seeing growing traction through the Lebanon Green Building Council.
Buildings across these three nations are responsible for between 20% and 35% of national CO₂ emissions, with inefficient housing contributing to billions in healthcare and subsidy-related costs. However, if just 30% to 50% of new developments adopt energy-efficient construction standards, the region could avoid over 88 million tons of CO₂ emissions, generate more than $21.6 billion in energy savings, and create nearly 200,000 jobs within the next two decades.
“The projected numbers mean that we need to scale energy-efficient construction rapidly and strategically,” said Karčiauskas.
“Prioritizing digital retrofits can unlock immediate energy savings at lower costs, while targeted deep renovations should focus on the highest-impact buildings. For MENA, a hybrid approach will be needed, but eventually, all buildings will have to optimize energy using AI tools due to the amount of data.”
Exergio’s recent work with Ozas shopping center in Lithuania offers a glimpse into what’s possible. By analyzing the building management system and integrating real-time HVAC control with machine learning, Exergio helped reduce electricity use by 29% and heating by 36%, resulting in nearly $1.08 million in annual savings.
“In MENA countries – where high temperatures, year-round cooling needs, and energy subsidies shape the market – the potential is even greater,” Karčiauskas concluded.
“Faster payback periods, higher baseline consumption, and a growing push for smart solutions make this region one of the most promising places for large-scale energy efficiency gains.”