18 September 2014
RIYADH - The return on buildings as a proportion of GDP in Saudi Arabia is one of the lowest among major economies but should rise sharply in the years to 2022, the annual MEED Saudi Mega Transport & Infrastructure Conference was Wednesday.
"Saudi Arabia's return on built assets is relatively low," head of property and social infrastructure in Saudi Arabia for Arcadis Hisham Al Malaika said. "We also have a huge issue in the quality of the infrastructure we are building in Saudi Arabia."
Aracadis has completed a study into returns on built assets on a total of 30 countries. They included Qatar, Saudi Arabia and the UAE. "The UAE was ranked seventh among the 30 countries in terms of return on built assets as a proportion of GDP. Saudi Arabia ranked 29th," Al Malaika said.
He also said the return on built assets would be lifted by paying greater attention to planning, procurement, operations and maintenance and replacement and renewal of built assets.
Meanwhile, international construction companies have been advised to choose their projects in Saudi Arabia carefully to avoid the manpower and materials shortages that are currently blighting many schemes across the kingdom.
At a construction leaders' panel organized at the event, experts say contractors need to work smartly to avoid the possibility of having massive losses on megaprojects due to overextending their operations.
Louis Berger Vice President and Regional Director KSA Ayman Nahas said the company "has the expertise and capability to assist our clients to solve their most complex infrastructure and development challenges." Its proven track record of delivering results and leaving a lasting legacy for the Kingdom and its communities will be critical as the Saudi projects market gains further momentum across infrastructure, transportation, water & wastewater and buildings sectors.
Ahmad Al-Humeidan, Deputy Minister of Labor Affairs, Kingdom of Saudi Arabia, detailed the potential contribution to Saudi Arabia's growth in local employment within the construction and project delivery industry to 2025.
Experts also identified available mechanisms for financing mega transport and infrastructure projects, as well as the extent of financing need to support the Kingdom's long-term projects requirements.
The MEED Saudi Mega Transport & Infrastructure Conference is organized with the permission of the Ministry of Commerce & Industry and in partnership with GC Company LLC of Riyadh.
RIYADH - The return on buildings as a proportion of GDP in Saudi Arabia is one of the lowest among major economies but should rise sharply in the years to 2022, the annual MEED Saudi Mega Transport & Infrastructure Conference was Wednesday.
"Saudi Arabia's return on built assets is relatively low," head of property and social infrastructure in Saudi Arabia for Arcadis Hisham Al Malaika said. "We also have a huge issue in the quality of the infrastructure we are building in Saudi Arabia."
Aracadis has completed a study into returns on built assets on a total of 30 countries. They included Qatar, Saudi Arabia and the UAE. "The UAE was ranked seventh among the 30 countries in terms of return on built assets as a proportion of GDP. Saudi Arabia ranked 29th," Al Malaika said.
He also said the return on built assets would be lifted by paying greater attention to planning, procurement, operations and maintenance and replacement and renewal of built assets.
Meanwhile, international construction companies have been advised to choose their projects in Saudi Arabia carefully to avoid the manpower and materials shortages that are currently blighting many schemes across the kingdom.
At a construction leaders' panel organized at the event, experts say contractors need to work smartly to avoid the possibility of having massive losses on megaprojects due to overextending their operations.
Louis Berger Vice President and Regional Director KSA Ayman Nahas said the company "has the expertise and capability to assist our clients to solve their most complex infrastructure and development challenges." Its proven track record of delivering results and leaving a lasting legacy for the Kingdom and its communities will be critical as the Saudi projects market gains further momentum across infrastructure, transportation, water & wastewater and buildings sectors.
Ahmad Al-Humeidan, Deputy Minister of Labor Affairs, Kingdom of Saudi Arabia, detailed the potential contribution to Saudi Arabia's growth in local employment within the construction and project delivery industry to 2025.
Experts also identified available mechanisms for financing mega transport and infrastructure projects, as well as the extent of financing need to support the Kingdom's long-term projects requirements.
The MEED Saudi Mega Transport & Infrastructure Conference is organized with the permission of the Ministry of Commerce & Industry and in partnership with GC Company LLC of Riyadh.
© The Saudi Gazette 2014
