Saudi Arabia Construction Articles & Analysis

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While competitive bid prices are putting pressure on margins, contractors in Saudi Arabia are now feeling the effects of new labour regulations on operations and costs. Since the government concluded an amnesty for illegal expatriate workers and began clamping down on illegal labour in November 2013, contractors have been having a more...

Chapter | Construction & Engineering from The Report: Saudi Arabia 2015

Despite the recent fall in oil prices, Saudi Arabia’s government is pushing ahead with its ambitious development agenda. The outlook is thus bright for the Kingdom’s construction firms, with projects planned under government’s 10th Development Plan including investments worth $258.2bn in real estate; $151.5bn in petrochemicals; and $126.7bn in electricity, gas and water. Indeed, in the short...

The accession of King Salman bin Abdulaziz Al Saud in January 2015 was the start of a new chapter for the Kingdom, and with the fall in global oil prices and continued regional turbulence there are undoubtedly challenges to be met. However, domestic stability, combined with the government’s commitment to major development projects and sustained focus on economic diversification, indicate a positive overall outlook for the country moving forward. 

House prices in Saudi Arabia are expected to rise further on the back of high demand for homes and a slow rollout of developments, with figures suggesting housing requirements will continue to outstrip supply even as new projects reach completion.

 

Although infrastructure upgrades are supplying the construction industry with the biggest share of its projects, housing will remain an important source of work in the coming years. According to Kuwait Finance House, real estate projects account for 35% of ongoing construction projects in Saudi Arabia. With the government keen to bridge the...

 

Buoyed by prolonged government stimulus, Saudi Arabia’s construction sector is experiencing rapid expansion, with no shortage of contracts in any segment of the industry. From housing to utilities and transport infrastructure, public spending is driving the contracting industry forward. While operational challenges remain, including concerns...