JEDDAH - Nineteen months after its announcement, Saudi Vision 2030 is proving effective, with the Kingdom’s construction sector showing increased growth potential. The "Saudi Arabia’s construction market overview 2018 and beyond" reveals that, thanks to recent reforms and renewed spending, construction activities are picking up after the slowdown that affected the industry over the past two years.
Prepared by BNC Network for The Big 5 Saudi, the region’s premier construction event, the report indicates that the Saudi construction market has tremendous growth potential in the near future. Currently, there are $284.3 billion worth of projects in the early stages of development in the Kingdom, with over 700 projects scheduled to begin work in the next months and due by or before 2022.
"Saudi Arabia has more than 4,700 construction projects that are active today, with a combined estimated value of $852.3 billion; around 170 of these projects are worth $1 billion or more," Nathan Waugh, Portfolio Event Director of The Big 5 Saudi, said.
According to the report, the ambitious Saudi Vision 2030 plan to move the economy away from oil profits is driving construction activities in both residential and non-residential segments. Reforms aimed at increasing the private sector’s contribution in growth industries such as mining, manufacturing, and healthcare, are offering new investment opportunities in the form of joint ventures or public-sector partnerships.
Moreover, the rapid growth of the Saudi population and strong urbanization trends are fueling the urban construction sector. This latter has the highest number of projects, with the most significant segment coming from residential and household properties.
"Today, there are over 3,300 projects in the urban construction sector, which represent approximately 70% of all construction activities in Saudi Arabia," Waugh further said. "Housing is indeed the most significant area of expenditure under the Saudi plan, aiming to grow the real estate sector contribution to GDP from 5% to 10% by 2030."
The Saudi Vision 2030 is driving demand for construction products in the country. "We see a rejuvenated interest in the Saudi construction market by international players this year," confirmed Waugh ahead of the eighth edition of The Big 5 Saudi. Running on March 5 to 8 at the Jeddah Centre for Forums & Events, the exhibition will bring under one roof over 500 manufacturers of construction products from around the world.
Expected to attract 15,000 visitors across the three days of the event, "The Big 5 Saudi 2018 will mark the positive recovery of the Saudi construction sector, which is expected to grow at an increasing pace in the coming years," Waugh pointed out..
An ideal platform for construction industry professionals to network, secure qualified leads and close business deals, The Big 5 Saudi also offers 50+ CPD (Continuing Professional Development) certified workshops, which are free to attend. Delivered by renowned industry experts, the educational sessions will focus on four themes: General Construction, Project Management, Sustainability, and Architecture & Design.
Organized by dmg events Middle East, Asia & Africa, The Big 5 Saudi is one of the most important construction events for the Middle East. - SG
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