Global Leaders Eyeing $1.2 Trillion Saudi Construction Market
Saudi Arabian construction market is expected to register a CAGR of 6% over the forecast period, 2019-2024
DESPARDES — More than 340 major players from the global construction industry will be landing in Jeddah to participate in the 10th edition of The Big 5 Saudi expo in March –with an eye on the kingdom’s trillion dollar+ construction market which includes mega-projects such as Neom and the King Salman Park.
There are already more than $1.2 trillion worth of planned and un-awarded projects in the Kingdom according to a recent Meed Projects report and webinar prepared in collaboration with The Big 5 Saudi, with $684 billion projects in the construction sector (55 per cent) alone.
According to experts, the Saudi projects market is currently one of the largest in the Middle East and North Africa (Mena) region, and highlights future acceleration in line with the opening of the kingdom’s economy and with Saudi Vision 2030.
Some of the key projects listed to offer significant business opportunities for construction companies include the King Salman Park mega-project in Riyadh, worth more than $17 billion, and the kingdom’s most ambitious project, the $500 billion Neom smart-city project.
More than $27 billion worth of project agreements with local and international investors, have been made by the Saudi Arabia General Investment Authority (SAGIA) and the Saudi Commission for Tourism and National Heritage (SCTH). These include plans to develop a shopping mall with the region’s largest indoor ski slope and snow park.
According to industry sources, more than 5,200 construction projects are currently ongoing in Saudi Arabia at a value of $819 billion. These projects account for approximately 35% of the total value of active projects across the Gulf Cooperation Council (GCC).
The urban construction sector is the largest contributor to the construction sector expansion, with 3,727 active projects valued at $386 billion. The utility sector is the second largest contributor with 733 projects worth $96 billion, followed by transportation with 500 projects valued at $156 billion.
Saudi Arabia’s top construction projects of 2019 were: Neom, the Red Sea Project, Qiddiya entertainment city, Amaala, Jean Nouvel’s Sharaan resort in Al-Ula, Makkah Grand Mosque – Third Expansion, Jeddah Tower, Ministry of Housing’s Sakani homes, Jabal Omar, Al Widyan, Riyadh Metro, Riyadh Rapid Bus Transit System, King Fahd Medical City Expansion, King Abdullah Bin Abdulaziz Medical Complexes, King Salman Energy Park (Spark), Saudi Aramco’s Berri and Marjan, Hanergy Solar Park, Dumat Al Jandal Wind Power Plant, Saudi Aramco-Total’s PIB factory, Pan-Asia bottling facility.
Phase 1 of the Red Sea project is expected to be completed in 2022 and includes 14 luxury and hyper-luxury hotels, all across five islands and two inland resorts.
According to Research and Markets, the Saudi Arabian construction market is expected to register a CAGR of 6% over the forecast period, 2019-2024.