The Saudi construction market is set to scale greater heights with a projected growth rate of 35 percent over the next three years.
With the total value of projects planned currently estimated at $ 732 billion, the sector is poised to become the fastest-growing in the Kingdom’s economy by 2015.
Construction projects worth a total of $42 billion were awarded in 2013 in the Kingdom, compared with $17 billion in 2012, making 2013 the strongest year for the country’s construction industry in recent times.
Saudi Arabia’s gross domestic product grew 3.19 percent in the third quarter of 2013 in current prices compared with a 2.7 percent rise in the previous three months, according to the Central Department of Statistics. The GDP value rose from SR675.19 billion in the third quarter of 2012 to SR696.7 billion.
During the same period the GDP rose by 3.05 percent in real prices, the department said.
In the public sector, the GDP fell by 18.52 percent to SR102.6 billion in current prices, compared to the same period in 2012. However, it showed a growth of 2.43 percent in real prices.
The private sector, on the other hand, achieved a growth of 6.53 percent in current prices in the third quarter of 2013 to reach SR244.08 billion compared to the figure of previous year, SR229.13 billion.
The construction and building sector and downstream industries showed big growth at the rate of 9.76 percent and 7.87 percent respectively. In stable prices, the sector’s growth rose by 3.31 percent.
In the Kingdom, the value of the estimated planned projects would be $ 732 million, according to an official from the Riyadh International Convention and Exhibition Center which has been organizing the the Saudibuild show annually for the past consecutive 25 years.
Saudi Arabia holds around 39 percent of the construction market in the GCC region. The major project allocations include, $ 116 for King Abdullah Economic City, $ 40 billion for Sudair Economic City, $ 66 billion for the proposed construction of 500,000 new housing units, $ 16.5 billion to revamp the transport system in the holy city of Makkah, construction of 53,000 rooms in hotels and the proposed $ 7.2 billion expansion for the King Abdulaziz International Airport .
“Driven by increasing private and public investments in 2013, we are witnessing a definitive surge in construction projects in Saudi Arabia — particularly in the fields of social and transport infrastructure,” Zeyad Al-Rukban, deputy general manager, Riyadh Exhibitions Company, said.
He said the huge participation at the last Saudibuild show held in November, demonstrated the vibrancy of the construction industry of the Kingdom.
The Kingdom hosted 850 companies from 35 countries at the Saudi Build 2013, held in Riyadh from Nov. 4 to 7.
“It attracted companies from across the globe, provided a meeting place for industry professionals, and offered a comprehensive set of solutions covering all aspects of the construction industry,” Al-Rukban said.