Construction & Engineering
From The Report: Saudi Arabia 2013
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While the construction industry in many countries may still be in the doldrums, in Saudi Arabia it is proving to be the driving force behind economic growth. Indeed, all the parts are in place for construction to remain a growing industry over the coming decade. Saudi Arabia has the region’s largest market; with its population of 29.2m people – as of 2012 – growing at an annual rate of 2.9%, the need for transport and power infrastructure should continue to grow. In 2012, some $159bn was committed to construction projects, including $67bn allocated for the building of 500,000 housing units and $4.4bn being spent on infrastructure works. While challenges remain for new entrants, the market is gaining in maturity with an improved tendering environment. Moreover, increased competition has the potential to reduce the profit margins for contractors, but it is also likely to improve quality even further.

Articles from this Chapter

Overview

Plenty to do: Demographic and economic growth drive demand for development
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While the construction industry in many countries may still be in the doldrums, in Saudi Arabia, it is proving to be the driving force behind economic growth. Indeed, the Kingdom is the envy of the region, eyed covetously by contractors elsewhere. All the parts are in place for construction to remain a growing industry over the coming decade. Saudi Arabia’s geography and demography will continue to demand the development of infrastructure, social facilities and housing, suggesting that local and…

Analysis

Big spending: Rolling out project investments as part of the ninth five-year plan
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The Saudi government has embarked on an ambitious spending programme that looks set to keep the local construction industry busy for years. In all facets of the sector, from large-scale infrastructure projects to new hospitals and schools, the slate of work is likely to expand in the coming years. The government has laid out plans to improve the country’s infrastructure in a number of documents. The ninth five-year development plan of the Ministry of Economy and Planning, for example, called for…

Analysis

The biggest builders: A look at the country’s top construction firms
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The country may be a new entrant to the international construction industry, however, it has had several well-established firms for many years. Both developers and contractors, such as the Kingdom Holding Company and Saudi Binladin Group, have grown into some of the best-known names in the country. With the country continuing to experience strong growth, Saudi’s biggest construction firms remain as busy as ever. Reaching For The Sky Kingdom Holding, which has a market capitalisation of SR63.4bn…

Analysis

Ascending to new heights: Taller structures silhouette the Saudi skyline
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Until recently, local developers and city planners viewed urban expansion along horizontal rather than vertical lines. Before the completion of Riyadh’s Al Faisaliyah Centre in 2000, no building in the Kingdom topped 200 metres. Backed by a bullish economy and a surge of confidence following government spending on housing, infrastructure, health and education projects, developers have a keener interest in high-rise buildings. Big Spender In 2012 Saudi Arabia completed more buildings over 200…