البناء و الأشغال العامة

   Saudi Arabia is enjoying strong growth driven by rising oil revenues.

These revenues have stimulated massive government related project spending. In addition, the Government has taken important steps to improve the business environment. With further reform anticipated and oil prices expected to remain high, it is believed that the Saudi Arabia is set for a continued strong period of growth, especially in the construction and infrastructure sectors.

Saudi Arabia comprises one of the largest construction markets in the entire Middle East, with multibillion dollar projects currently under way and many more in the planning stage by both public and private sectors entities .

The public sector mainly focuses on developing the infrastructure of the country in forms of building and/or renovating transportation facilities, educational facilities, healthcare facilities, pipelines, refineries, petrochemical complexes, power plants, etc.

On the other hand, the private sector has been playing a more active role in the growth of construction sector. Privately held firms and individuals have been investing in the development of the country in the form of residential and commercial estates, hospitals, educational institutes, tourism and retail outlets.

The contracting and construction sector in Saudi Arabia is hyping to record unprecedented growth in the coming years. The total value of construction contracts awarded to contractors is set to witness an impressive USD 63,383 million in 2012 with an annual growth rate of 23.4 %.

The need to cater for a growing population with increased per capita income combined with the availability of vast areas of undeveloped urban land are the primary driving force contributing to this progressive growth. Other factors that drive the market include the steady growth in religious tourism and the impending economic / industrial city developments in the country.

Demographic, economic and social elements are the most important determinants of demand for housing. Based on the preliminary results of the General Census of Population and Housing in 2004, the total demand for housing during the Eighth Development Plan is estimated to be one million units, up to 200 thousand units per annum, which will be a growth driver to the construction sector in addition to the Mortgage law approval.

The combined effect of a growing population, a new array of economic policies designed to attract foreign investors will insure that in the coming decade, the demand for real estate, both residential and commercial, will grow almost exponentially. Additionally, Saudi Arabia's transport infrastructure must cater to the needs of an expanding population.

However, it not only serves the Saudi population but also the tourist industry. The country's tourist industry is based around religious pilgrimage. The annual Hajj places intense pressure on the Saudi infrastructure framework as an estimated 1.9 million oversees visitors and over 500,000 domestic pilgrims make the trip every year. The transport network has also grown around the needs of trade.

However, it is important to note that the prime factors resulting in the growth in prices included an increase in demand for various real estate sectors, and consequently an increase in prices of both construction materials and land.

There have been announcements about several key projects from various industries in Saudi Arabia, of which some have been already awarded to contractors and the rest are still in the planning phase or the bidding phase. These key projects will be a key driver for the construction sector growth over the coming few years.

According to a recent study published by Global Investment House, the total value of investments are expected to reach SAR 1.3 trillion by the end of 2012.