Organizers of The Big 5 Saudi say more than 5,200 construction projects are currently rolling out in the GCC’s largest country, the Kingdom of Saudi Arabia, a BNC Network report shows.
Valued at $819 billion, these account for 35% of the total value of active projects across the 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 KSA. A recent BMI research forecasts the sector’s annualized average growth at 6.13% from 2018 to 2022.
According to Roni El Haddad, Event Director of the Kingdom’s premier construction event, The Big 5 Saudi,
“The construction sector’s immediate outlook is extremely promising. The recent launch of the Public Investment Fund backed multi-billion dollar Amaala resort in September, along with the already announced NEOM and Red Sea Project, in what is already being dubbed the “Riviera of the Middle East”, is a proof of that.
“Saudi Arabia’s Vision 2030, along with significant investment in housing and infrastructure development promoted across the country by local authorities, are revitalizing the construction industry and generating interest in a growing number of international players,” El Haddad adds.
The urban construction sector is the largest contributor to the construction sector’s expansion with 3,727 active projects valued $386.4 billion, BNC Network’s report indicates.
The utility sector is the second largest with 733 projects worth $95.6 billion, followed by transportation, with 500 projects valued $156.2 billion.
Top Urban Construction Projects
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 $21.3 billion and developed by the Ministry of Municipalities and Rural Affairs in Makkah.
Also in Makkah, a $1.7 billion hotel, the Makkah Residence Development (Phase 2) is expected to open its doors by the end of 2019 offering 3,000 five-star rooms, as Vision 2030 plans to attract 36 million pilgrims a year to the country’s holy places.
In the capital city, Riyadh, a $3.5 billion mixed-use development project called “The Avenues – Al Malqa” is due for completion by 2020 over an area of 1.7 million square meters. Set to open in 2022, the Mall of Saudi – An Narjis, developed by Majid Al Futtaim Group, is valued at $3.2 billion. In Riyadh, the Saudi Arabia National Guard is also building 6,000 villas over 7 million square meters with a $1.3 billion investment.
Jeddah’s skyline is expected to be enriched by the $1.1 billion Darb Al Harmain Complex at the end of 2018. Also, the new Jeddah Downtown (Phase 1), a mega urban development project worth $2 billion, will revamp the Corniche area with 12,000 new housing units by the end of 2022.
Business opportunities on the rise
Megaprojects like NEOM, the city planned over 26,500 square kilometers in Tabuk, along with the thousands already under construction across the country, are pushing the demand for innovative building solutions in Saudi Arabia.
dmg events, the organizers of The Big 5 Saudi, announce to expect 15,000 visitors, looking to source thousands of products for their projects, at the next edition of the event. The Big 5 Saudi, which will run from 10 to 13 March 2019 at the Jeddah Centre for Forums and Events, will host more than 400 local and international exhibitors across dedicated product zones.
Beyond the traditional MEP Services, Building Interiors & Finishes, Construction Tools & Building Services, Building Envelope & Special Construction, in 2019 The Big 5 Saudi will introduce the all-new Heavy Equipment, HVACR Equipment, Smart City Technology, Solar Equipment, and Urban Design & Landscaping Equipment zones.
El Haddad comments:
“The diversification of Saudi Arabia’s construction portfolio, which now spans from smart cities to hospitality infrastructure, from housing to entertainment facilities and parks, calls for a wide range of new building solutions and equipment. The Big 5 Saudi’s expanded product sectors reflect this growing need and offer an ideal platform for buyers and sellers to network and find new products and solutions in a highly professional environment.”