Saudi construction investment to jump to $300 billion by 2016

saudi constructionThe volume of investment in the building and construction sector in Saudi Arabia is poised to jump to 1.12 trillion riyal ($300 billion) by 2016 from the current level of 750 billion riyal ($200 billion), local media quoting local investors said.

More than 60 per cent of basic building materials, including cement, rebar, water tanks, doors and windows, are easily accessible in the local markets. Only items like certain electrical and sanitary ware items are not easily available, Al-Eqtesadiah daily said.

The construction sector provides good job opportunities and is second in terms of contribution to GDP after the oil sector with its share at 16.5 per cent in 2012, the investors said, adding that the increase in number of projects being implemented would push up investment volumes in the sector.

The investors, however, voiced apprehensions that national companies (contractors) will not be in a position to implement such mega projects due to labour shortage and pile-up of stalled projects.

Ali Fahmi, regional manager of Zamil Industries Co. in the Eastern Region, said the Saudi market was characterised by the presence of national firms specialised in building and construction which have remarkably contributed to the implementation of many housing and commercial projects. Fahmi, one of the participants at the Build Expo in Dammam, expects many GCC and Arab firms to enter the Saudi market to implement mega projects earlier announced by the Ministry of Housing and other government projects.



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The volume of investment in the building and construction sector in Saudi Arabia is poised to jump to 1.12 trillion riyal ($300 billion) by 2016 from the current level of 750 billion riyal ($200 billion), local media quoting local investors said. More than 60 per cent of basic building materials, including cement, rebar, water tanks, doors and windows, are easily accessible in the local markets. Only items like certain electrical and sanitary ware items are not easily available, Al-Eqtesadiah daily said. The construction sector provides good job opportunities and is second in terms of contribution to GDP after the oil...

saudi constructionThe volume of investment in the building and construction sector in Saudi Arabia is poised to jump to 1.12 trillion riyal ($300 billion) by 2016 from the current level of 750 billion riyal ($200 billion), local media quoting local investors said.

More than 60 per cent of basic building materials, including cement, rebar, water tanks, doors and windows, are easily accessible in the local markets. Only items like certain electrical and sanitary ware items are not easily available, Al-Eqtesadiah daily said.

The construction sector provides good job opportunities and is second in terms of contribution to GDP after the oil sector with its share at 16.5 per cent in 2012, the investors said, adding that the increase in number of projects being implemented would push up investment volumes in the sector.

The investors, however, voiced apprehensions that national companies (contractors) will not be in a position to implement such mega projects due to labour shortage and pile-up of stalled projects.

Ali Fahmi, regional manager of Zamil Industries Co. in the Eastern Region, said the Saudi market was characterised by the presence of national firms specialised in building and construction which have remarkably contributed to the implementation of many housing and commercial projects. Fahmi, one of the participants at the Build Expo in Dammam, expects many GCC and Arab firms to enter the Saudi market to implement mega projects earlier announced by the Ministry of Housing and other government projects.



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Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

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Donation Total: $10.00

 

 

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