Saudi Arabia’s power cables market is forecast to grow at a compound annual growth rate (CAGR) of 8.3 percent, reaching 16.8-18.7 billion Saudi riyals ($4.48- 4.98 billion) over the next five years, financial services consultancy Al Rajhi Capital said in a new report.

The Kingdom is ready to transition to a more sustainable and diversified economy, which in turn will stroke up power cable demand, the report said.

The UAE is the second largest market in the region after Saudi Arabia. The emirate will likely be at the forefront of the energy transition as it aggressively pushes toward developing new infrastructure and real estate projects, it noted.

The main growth drivers for the power cables industry are ongoing energy transition, grid renewals and upgrades, industrial development, mega projects, and housing expansion, the financial services consultancy added. 

Meanwhile, the power cable market in Saudi Arabia, Gulf countries and Iraq grew at a CAGR of 2.5 percent over the past four years, despite the pandemic’s negative impact in 2020.

Al Rajhi Capital said the combined market is anticipated to accelerate to a CAGR of 7.2 percent, with a total market value of SAR 34.9-38.8 billion in the next five years due to an increase in construction activities, as well as supportive macroeconomic and demographic factors.

(Writing by D Madhura; Editing by Anoop Menon)