The construction sector has undergone several transformations to address adverse environmental, economic, and social impacts. The concept of the circular economy (CE) has transcended into this domain to solve the needs of construction amid resource constraints. Furthermore, advanced digital tools are being implemented across industries owing to the boost given by the fourth industrial revolution. This paper aims to develop a framework that investigates the effect of digital tools on CE implementation in the construction sector. The study is based on a three-step approach, where first, an initial framework design based on a systematic literature review was conducted. This is followed by framework optimization using semistructured interviews with experts and validation through a case study. This study resulted in the development of a new framework, which aims to investigate how advanced digital tools can be used in the construction sector to enhance CE implementation. The contribution of the present study is two-fold: (1) the integration (addressing existing research gap) of CE and digitalization concepts in the construction sector; (2) an investigation into the critical barriers, offering insights for construction practitioners.

As the world faces the detrimental effects of humanity on the environment, the circular economy has started receiving a lot of attention as a tool to keep the value of resources. Although in Europe, circular economy principles have become a trend much earlier, CACs still face challenges in adopting them. The current research aims to review the available literature on sustainability, green economy, and circularity development through the adoption of political, industrial, and financial instruments, followed by an assessment of the barriers and opportunities to circular economy development in the CACs. The novelty of this research lies in the systematic review of different state-of-the-art data resources (journal papers, policies, news, and reports) of CACs by different categories: policy regulations, energy, waste, education, water, and agriculture. This research addresses that the CACs have similar circular economy development barriers (e.g., wide use of fossil fuels, water shortage, and lack of effective waste management) and opportunities (e.g., orientation towards sustainable development, foreign cooperation, and green financing). Therefore, performing effective strategic plans that are already directed to circularity, ensuring stakeholders’ involvement, and providing sufficient funding could benefit their circular economy development.