Construction contracts in Saudi's real estate market expected to top $60bn in 2010 despite global crisis

The three- day congress will bring together key government bodies, ministries, urban planning and development authorities, leading infrastructure developers, construction companies, architectural firms, building material manufacturers and suppliers and technology providers from all over the world.

The conference is considered of high importance to the development and investment in Saudi Arabia's real estate sector which is expected to remain strong despite project delays and cancellation, according to recent reports from Ventures Middle East.

As the largest construction market in the Gulf, the value of new construction contracts awarded to main contractors in Saudi is expected to increase by 15.4%, reaching $60bn in 2010 compared to $52bn in 2008.

During the congress, industry-renowned experts will discuss the latest trends and issues in the industry, mainly focusing on sustainable cities, public-private partnerships discussions, smart cities and city development strategies, green buildings and innovative build IT solutions, the importance of maintenance and operations and the need for facilities management in the region.

The real estate and construction development is mainly driven by the strong local population growth which is expected to double in the next 20 years, the demographic and structural shifts in the economy, the increasing transparency of laws and regulations attracting foreign investment and the new mortgage law as well as the affluent commercial sector. As a result, six mega economic cities are currently being developed and are expected to be home to 4 to 5 million residents by 2020.

Prachi Dawar, Event Project Director, naseba said, "We are pleased to introduce the first event, gathering all leaders from the building, city and facilities management industries under one roof in the Kingdom of Saudi Arabia. 'Kingdom Expansion Congress 2009' is an opportunity for all industry players to enter the new booming Saudi market, understand its needs, requirements and establish themselves in the country."

Speakers at the conference include: His Excellency Abdullah Al Mogabel, Deputy Minister for Roads, Ministry of Transport, Saudi Arabia; Dr Mustafa Madbouli, Chairman - General Organisation of physical planning, Ministry of Housing, Utilities and Urban Development, Egypt; Abdul Aziz Al Duailej, CEO, Al Oula Development; Essam Al Kalthoum, CEO, Al Shamiyah Urban Development Co.; Mohammed S. Al Khalil, CEO, Akwaan Properties.

And H.E. Abdullah Ali Al Nuaim, Former Mayor, City of Riyadh and President of Arab Urban Development Institute; Eng Mohammed Al Nagadi, President, Saudi Building Code National Implementation plan and Deputy Minister, Ministry of Municipality (MOMRA); Eng Waleed Al Eisa, Head of Project, King Abdullah Financial District; Dr. Adel Al Dosary, Chairman - City and Regional Planning, King Fahd University of Petroleum and Minerals; Mohammed Hammad, Head for central and eastern projects, Saudi Aramco and Vice President of Project Management Institute - Arabian Gulf Chapter.

With the Saudi market currently valued at over $1 trillion worth of underway and planned projects, the real estate activity is estimated to increase at an average annual rate of 5.8%, with its contribution to GDP increasing from 6.8% in 2004 to 7.2% in 2009.

The contribution of the building and construction sector to the GDP is estimated to increase at an average annual rate of 6.7%, reaching 7.3% by the end of 2009, as compared to 6.6% in 2004, concluded the Saudi Ministry of Economy in the Eighth National Development Plan (2005-2009).