Saudi Arabia scales down construction spending

Faithful+Gould has announced that Saudi Arabia will spend around US$ 29.9 billion on construction projects in 2016, reflecting a 20% decrease on last year’s budget.

The integrated project and programme management consultancy company ran a seminar alongside Saudi Council of Engineers at the council’s offices in Jeddah, which was designed to educate project managers and industry professionals on the importance of early engagement of project and programme management.

The event was part of a series of seminars that have become increasingly important, following the falling oil prices and the effects this has had on the Kingdom’s expenditure. Following the Kingdom’s revised budget of US$ 229 billion for 2016, a number of construction projects have either been scaled down, or put on hold indefinitely.

It is expected that spending will be similar in 2017, while 2018 will see a return to growth.

David Clifton, regional business development director of Faithful+Gould, said, “Offering professional development seminars in this economic climate equips project managers with the tools necessary to deliver projects under budget.

“Over 30% of the workforce is employed in the infrastructure and construction sectors and installing efficient business processes and applying accurate technical knowledge are two of the most important tools we have at our disposal right now to continue propelling the development of the Kingdom further.”