Construction boom on Saudi horizon

Riyadh allocates more than $695b to be spent on 687 projects before the end of 2015

Riyadh, Feb 4,2011 (Gulf News): A Saudi construction products company has called for efforts to boost the construction sector in the kingdom.

The call was made at a time when reports are saying that building and construction loans in the kingdom will grow at a compound annual growth rate (CAGR) of around 17.6 per cent during 2010-2013.

The call was made by the Construction Products and Holding Company during its participation in the recently concluded Construction and Projects Forum. The event was held on January 18 and 19 at the Riyadh International Convention and Exhibition Centre.

Saudi Arabia has allocated over $695 billion (Dh2.55 trillion) to be spent on 687 projects before the end of 2015, 22 per cent of which are in the execution phase.

These projects are distributed among diversified sectors, such as infrastructure projects, power, railways, highways, airports, ports, oil and gas production, petrochemicals, refining, water and waste water, in addition to basic industries and social services sectors such as education, health care, training and many others.

Some reports say the Saudi building construction industry has witnessed unprecedented growth in recent years with the construction contract awards likely to grow to $39,138 million in 2012, in spite of the global financial crisis.

The Ministry of Finance said in October 2010 that real growth in the kingdom's construction sector reached 3.9 per cent in 2009 with real estate growing by 1.8 per cent.

The construction sector in Saudi Arabia is the largest and fastest growing market in the Gulf region. Ongoing construction projects in the Gulf are valued at $1.9 trillion.

Photo : New apartments under construction at the Al Qasr project in Riyadh. Builders in the region are eager to expand in Saudi Arabia.
Image Credit: Bloomberg