Cushioned and insulated by its strong oil reserves and ambitious government plans for economic development through diversification and investment programs, which include the development of the renowned six economic cities across the kingdom, towards achieving this goal, the Kingdom of Saudi Arabia, is one of the fastest growing emerging markets of the Middle East. Its rapidly growing and fast urbanizing young population constantly fuel demand across the commercial, residential and retail segments of the market while housing the world’s two popular religious shrines Mecca and Medina, the country also attracts large tourism revenues further fuelling demand in the tourism and leisure segments as well. Spurred by these factors, the building construction industry in Saudi Arabia has witnessed unprecedented growth in recent years with the construction contract awards likely to grow from US$ 22,210 million in 2008 by a Compound Annual Growth Rate of 12 percent to US$ 39,138 million in 2012, in spite of the adverse effects of the global economic slowdown that has hit growth across the industry in the Middle East.
While the Saudi market continues to face its share of project delays, conservative banking policies, delays in execution of laws, lack of transparency and the adverse effects of the global economic slowdown, it continues to be a comparatively rising star, which is likely to witness a steady and healthy growth in its construction industry in the medium and long term as compared to its counterparts due to the earnest efforts of the government through its planned diversification based investment schemes and its healthy demand growth across sectors.
The Soaring Saudi Building Construction Report - November 2010 is a study by Ventures Middle East based on its vast experience of the GCC construction market and its extensive projects database across the countries of the Middle East and North Africa (MENA) region. It provides a strategic insight into the various political, economic, social, technical, legislative and environmental factors impacting this promising market. Besides an analysis into the market drivers and restraints culminating in a probability impact matrix of the occurrence of these drivers and restraints on the building construction market, the study also provides key statistics of the construction contract awards and the actual construction spend across the various sectors of the building construction market namely, commercial, residential, mixed use, retail, tourism and leisure and Others (which includes airports, educational institutions, hospitals and health care facilities and other miscellaneous projects).
Key statistics also include Market size and forecasts of KSA Building construction contracts and a listing of the top consultants, contractors and clients in the building construction market of Saudi Arabia. The study also provides description of the ongoing construction projects in addition to the proposed new projects thereby serving as a wealth of information for all key stakeholders of real estate sector vying to enter this market.
