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.