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09 April 2017
RIYADH: A group of investors and contracting experts lauded the contracting sector in creating quality real estate products in the Kingdom within the housing support program.
Investors and contractors, however, admitted that the contracting sector is still facing many obstacles including Saudization, finance, fluctuating prices of building materials and scarcity of skilled labor.
They said local contracting companies are not less efficient or experienced than foreign companies and they only need support from the government, notably the Ministry of Housing.
Local companies have gained experience through their domestic and international projects, Al-Riyadh daily quoted the experts as saying.
Majid Al-Shalhoub, a member of the Real Estate Committee at Riyadh Chamber of Commerce and Industry (RCCI), called for a merger of some contracting companies and the removal of the companies that do not contribute to the activities of the contracting sector.
He stressed that it is difficult for the Saudi market to embrace more than 240,000 contracting companies, some of which are legitimately working while others recruit “illegal” workers.
Based on unofficial figures released in 2016, nearly 243,000 contracting companies are working in the building and construction sector and employing some 4.5 million workers. However, 40 percent of the companies see their projects falter and, therefore, their workers’ salaries are delayed.
Al-Shalhoub said care should be given to the contracting sector in its capacity as serving the housing sector, adding that problems of the contacting sector are old, including the Saudization rates and the finance required to spend on projects.
Ali Al-Shihri, head of projects at Hamad Al-Mizaini Real Estate Company, agreed that local contracting companies have suffered obstacles negatively affecting their progress.
He said the local contracting companies are facing a scarcity of skilled Saudi or foreign workers.
RIYADH: A group of investors and contracting experts lauded the contracting sector in creating quality real estate products in the Kingdom within the housing support program.
Investors and contractors, however, admitted that the contracting sector is still facing many obstacles including Saudization, finance, fluctuating prices of building materials and scarcity of skilled labor.
They said local contracting companies are not less efficient or experienced than foreign companies and they only need support from the government, notably the Ministry of Housing.
Local companies have gained experience through their domestic and international projects, Al-Riyadh daily quoted the experts as saying.
Majid Al-Shalhoub, a member of the Real Estate Committee at Riyadh Chamber of Commerce and Industry (RCCI), called for a merger of some contracting companies and the removal of the companies that do not contribute to the activities of the contracting sector.
He stressed that it is difficult for the Saudi market to embrace more than 240,000 contracting companies, some of which are legitimately working while others recruit “illegal” workers.
Based on unofficial figures released in 2016, nearly 243,000 contracting companies are working in the building and construction sector and employing some 4.5 million workers. However, 40 percent of the companies see their projects falter and, therefore, their workers’ salaries are delayed.
Al-Shalhoub said care should be given to the contracting sector in its capacity as serving the housing sector, adding that problems of the contacting sector are old, including the Saudization rates and the finance required to spend on projects.
Ali Al-Shihri, head of projects at Hamad Al-Mizaini Real Estate Company, agreed that local contracting companies have suffered obstacles negatively affecting their progress.
He said the local contracting companies are facing a scarcity of skilled Saudi or foreign workers.
© Arab News 2017
