Construction of Kingdom's schools and hospitals in focus as inaugural Saudi Construction Summit 2011 is launched
Spending on social infrastructure in Saudi Arabia, including construction of educational and healthcare facilities, is set to surpass $155 billion over the next decade, according to government figures.
The Saudi Construction Summit, which will be held in Jeddah, Saudi Arabia from 19-22 June, 2011, is recognising the unprecedented opportunity this programme of spending represents for many regional and international construction businesses.
"In light of the Saudi government's most recent announcement of additional spending, on top of funding already committed through the 2011 budget, the significance of the Saudi Construction Forum 2011 cannot be overstated," said Ozair Shaiq, Conference Director, Saudi Construction Summit.
Shaiq also highlighted Saudi Arabia's low public debt levels, which are among the lowest in the world, in demonstrating its ability to meet its social infrastructure project spending demands.
"Saudi Arabia has public debt at 17% of GDP, external debt at 13% of GDP and 80% of Saudi's $622 billion GDP comes from hydrocarbon receipts. Given that oil prices at the moment are well over $100 dollars per barrel and Saudi has promised to increase production to replace any shortfalls in Libyan oil exports, funding is undoubtedly available," he added.
The Kingdom is ranked within the global top 20 in having one of the world's lowest levels of public debt as a percentage of GDP, and is also within the top 20% of nations in terms of low external debt levels, according to figures from the CIA World Factbook.
In financing its significant programme of social infrastructure construction, the Saudi government's commitment includes $37 billion for the construction of schools and universities and $35 billion for the development of hospitals and other healthcare facilities.
"With the huge volume of construction projects currently underway or planned for the decades ahead, the construction market holds huge potential for construction companies. Gaining access to this market is one of the key objectives of the Saudi Construction Summit," said Shaiq.
The Saudi Construction Summit will provide organisations in civil engineering, primary construction, secondary finishing and related sectors with new insight into the design, construction and business model considerations required to develop a cohesive and efficient social infrastructure.
Population growth is the primary driver, with Saudi Arabia the most populous nation in the Gulf, having quadrupled over 40 years to reach 25.7 million people, 5.5 million of which are expatriate workers, according to figures from Credit Suisse Group AG.
"Over the next decade, Saudi Arabia is expected to face a sharp increase in healthcare and education demand. A growing population needs to be educated to compete in the domestic and regional market and an aging population combined with a high birth rate will inevitably put added pressure on healthcare services," said Shaiq.
Saudi Arabia has a high proportion of young people, with around 7.7 million under the age of 15. This has necessitated substantial investment in schools and universities, with spending in this area having tripled to almost $140 billion over the past decade. According to the Saudi government's 2011 budget, 3,200 new schools are currently under construction with 600 more planned for 2011.
This is also being driven by efforts to diversify its economy away from its dependence on hydrocarbon receipts, with new educational institutions needed to train the next generation of workers. Increasing local workforce participation and reducing the reliance on expatriate labour, which makes up over 20% of the population, is another key factor.
Significant funding is also being committed to construction within the healthcare sector, in anticipation of the future healthcare requirements for the 60% of citizens (17.6 million) aged between 15 and 64.
The Saudi Ministry of Health has allocated more than $18 billion for healthcare services and social development, including the construction and equipping of primary healthcare centres, the building of 120 new hospitals and the upgrade of four existing hospitals.
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About Saudi Construction Summit 2011
Saudi Construction Summit is the only event dedicated to examining the key infrastructure developments in Saudi Arabia.
A must attend event for Saudi government organisations, ministries along with private developers, consultants, contractors, designers, architects, engineers, building material suppliers and manufacturers, it provides an unrivalled opportunity to meet key government and industry decision makers in a single location.
Receive the latest information about Saudi Arabia's economy and growth drivers, learn about the government's vision for national infrastructure development and gain insight the various financing models for the construction sector.
Saudi Construction Summit also provides best practice information on project management and innovation in sustainable construction technologies and health and safety issues for the construction industry.
For more information about Saudi Construction Summit log on to www.constructionsaudi.com
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© Press Release 2011
