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New Report Discusses Saudi Arabian Infrastructure Market

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Dec 21 2010

Research and Markets has announced the addition of the "Saudi Arabia Infrastructure Report Q1 2011" report to their offering.

Saudi Arabia Infrastructure Report provides industry professionals and strategists, corporate analysts, infrastructure associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Saudi Arabia's infrastructure industry.

Saudi Arabia has consistently been one of BMI's top picks in the region for construction potential, specifically social and economic infrastructure, over the past 12 months. In 2010 the authors are forecasting the construction industry to post 6.1% real growth to reach a value of SAR79bn (US$21bn). Between 2011 and 2015 annual average growth of 4% is anticipated.

In BMI's Q111 Saudi Arabia Infrastructure Report BMI have extended forecasts to 2020 and have expanded coverage to include the residential and non-residential building sector. Their outlook for robust growth in one of the largest construction sectors in the region is predicated on:

Strong and sustainable demand for infrastructure: a growing Saudi national population with strong demographics, 66% of the population is under 25, will ensure continued demand for both social and economic infrastructure. In addition, an expanding economy will drive demand for better transport links and reliable electricity supply.
The government's commitment to infrastructure: the need to expand and upgrade infrastructure combined with high levels of unemployment amongst Saudi nationals is prompting the government to invest heavily in public works as a form of job creation. In the first half of 2010 the government handed out US$16bn in construction contracts.
US$2.8bn was invested in roads and telecommunications, with another US$2.8bn on education facilities as well as US$1.6bn on water projects and US$1.5bn invested in rural and urban development projects.
The Ninth Development Plan for the Kingdom of Saudi Arabia: announced in August 2010, the plan sets out to invest SAR1,444bn (US$385bn) between 2010 and 2014. The government is planning to devote 7% of investment to housing projects, with the public and private sector partnering to build a planned 1mn housing units. Around 19% of the funds will be devoted to healthcare, with plans to open 117 hospitals and 750 primary care units. Education will also form a substantial part of the plan, with construction of vocational school and colleges on the agenda.
Energy sector investments: US$80bn 10-year investment plan for electricity infrastructure (2008-2018) has seen significant activity in the energy sector. In August 2010 alone, almost US$4bn worth of contracts were awarded.
BMI's Key Projects Database has recorded over US$100bn 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.

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