Saudi Arabia''s construction industry is predicted to show real growth of four percent this year on the back of demand for social and economic infrastructure.
Business Monitor International, in its report on the kingdom''s construction sector for Q2. It expected the sector to reach a value of SAR 87 billion. Between 2011 and 2015, annual average growth of four percent is anticipated.
BMI said that data from the National Commercial Bank shows that USD 80 billion worth of construction projects were awarded by the government in the first 10 months of last year. It said that this further supported its bullish outlook for the country''s construction sector.
The BMI study also saw the Saudi national population with 66% of the population under 25 ensuring there would be continued demand for infrastructure.
The Ninth Development Plan for Saudi Arabia announced in August 2010, sets out investment of SAR 1,444 billion between 2010 and 2014. The government is planning to devote seven percent of investment to housing projects with the public and private sector partnering to build a planned 1 million housing units.
There are also plans to open 117 hospitals and 750 primary care units while the construction of vocational schools and colleges are also on the agenda. BMI’s Key Projects database has recorded more than USD 100 billion of social and economic infrastructure projects under way and in the pipeline in Saudi Arabia.
This illustrates both current high levels of activity and future growth potential. The significant number of contracts in the tendering phase has peaked investor interest in Saudi Arabia with many regional construction companies focusing on the country for opportunities, especially those previously focused on the UAE.
( Source: www.steelguru.com )