The adoption of the circular economy in construction is vital for reducing environmental impact and fostering sustainable growth. The ‘material passport’, a detailed digital repository of building materials, is crucial at the intersection of construction and the circular economy, driving toward a more sustainable future. Despite the need to understand challenges in material passport implementation, limited research exists. This study conducts a comprehensive literature review, categorizing challenges into Technical, Market, Political, Regulatory, and Commercial aspects, with technical challenges topping the list in frequency, signifying their paramount importance. Methodologically, six expert interviews refined identified challenges, resulting in thirteen challenges confirmed by three or more experts, encompassing issues like data management deficiencies, technological integration gaps, lack of regulatory frameworks, certification for recycled materials, complexities within the construction supply chain, and a noteworthy emergence of ‘customer perception,’ underlining stakeholder views on material passports. Through this amalgamation of literature review and expert insights, this research not only identifies but also validates the critical impediments hindering material passport implementation in the UAE. The validated challenges serve as a foundational framework for strategic recommendations aimed at overcoming barriers and fostering sustainable practices within the construction industry. Moreover, these findings may offer valuable insights that could extend this research to encompass GCC countries, providing a comprehensive understanding of challenges and opportunities across the region.