More than 5,200 construction projects are currently ongoing in Saudi Arabia at a value of US$819 billion, according to a report from BNC Network.
These projects account for approximately 35% of the total value of active projects across the Gulf Cooperation Council (GCC).
Despite recent challenges faced by the sector attributed to low oil prices and a reported shortage of qualified workers, construction is recording a 4.1% increase this year in Saudi Arabia. Recent data from BMI research forecasts the sector’s annualised average growth at 6.1% from 2018 to 2022.
Roni El Haddad, event director of the Big 5 Saudi, said, “The construction sector’s immediate outlook is extremely promising.
“Saudi Arabia’s Vision 2030, along with significant investment in housing and infrastructure development promoted across the country by local authorities, are revitalising the construction industry and generating interest in a growing number of international players.”
The urban construction sector is the largest contributor to the construction sector’s expansion with 3,727 active projects valued US$386.4 billion, BNC Network’s report indicates. The utilities sector is the second largest with 733 projects worth US$95.6 billion, followed by transportation, with 500 projects valued at US$156.2 billion.
Some of the major urban construction projects in Saudi Arabia include the King Abdullah Security Compounds (Phase 5), and the Grand Mosque (Holy Haram Mosque expansion), each valued US$21.3 billion and developed by the Ministry of Municipalities and Rural Affairs in Makkah.