19/09/2023
🔝 Construction in Saudi Arabia: Promising Opportunities for Local & Foreign Companies**
💡 Introduction:
The sector in stands as the second-largest non-oil sector in the , with an annual investment exceeding 260 billion riyals ($69.33 billion), offering employment for around 3 million individuals.
🔸️ Content:
This sector plays a pivotal role in achieving Vision 2030, leading numerous major projects in fields such as transportation, energy, real estate, and tourism. With its burgeoning growth, it presents vast opportunities for both local and international companies.
🔹️ Project Volume & Forecasts:
According to a report by Colliers International, the project volumes were $140 billion in 2019, $93.6 billion in 2020, and 171 billion riyals ($45.6 billion) in 2021. Predictions for 2022 indicate a 3.2% growth, with an average annual growth rate of 4% from 2023-2026:
🔹️ 2022: 176.4 billion riyals ($47.04 billion)
🔹️ 2023: 183.5 billion riyals ($48.93 billion)
🔹️ 2024: 190.8 billion riyals ($50.88 billion)
🔹️ 2025: 198.4 billion riyals ($52.89 billion)
🔹️ 2026: 206.3 billion riyals ($54.94 billion)
✔️ Key Takeaways:
The Saudi construction sector offers:
🔸️ Diverse projects: Infrastructure, residential and commercial constructions, energy, tourism.
🔸️ Steady growth: Supported by government incentives.
🔸️ Attractive market: Strong economy, advanced infrastructure, strategic location.
🔸️ The construction sector is expected to contribute 6.1% to the Kingdom's GDP by 2030.
🔸️ The sector is also anticipated to create over 1 million new jobs by 2030.
🔸️ The Saudi government has pledged to invest over 1 trillion riyals ($266.6 billion) in the construction sector over the next decade.
🔸️ Some of the key projects bolstering the growth of the Saudi construction sector include the NEOM megacity, Diriyah Gate, the Red Sea Projects, Downtown projects,and the Qiddiya entertainment complex.
A͞͞rsha͞͞d R. Bhūttō
Everyone