Construction in Saudi Arabia - Key Trends and Opportunities to 2022

  • ID: 4539715
  • Report
  • Region: Saudi Arabia
  • 42 pages
  • Timetric
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Construction activity in Saudi Arabia was weak during 2016-2017, due to the impact of low oil prices, which led to the implementation of various austerity measures by the government. Reduced public expenditure coupled with weak investor confidence led to a decline in construction activity.

The industry is expected to experience slow growth during 2018, as the economy begins recovering from the collapse in oil prices. The industry is expected to gain momentum from 2019, however, supported by a probable rise in oil prices and a gradual improvement in economic conditions.

The government’s effort to diversify the economy in order to reduce its dependence on the oil sector is also expected to bode well for the industry over the forecast period (2018-2022). In April 2016, the government launched the Vision 2030 program, under which it aims to increase the share of non-oil sector revenues from SAR163.0 billion (US$43.5 billion) in 2016 to SAR1.0 trillion (US$266.7 billion) in 2030.

In real terms, the industry’s output value increased at a review-period (2013-2017) compound annual growth rate (CAGR) of 0.97%, and is expected to post a forecast-period CAGR of 2.52%.

Summary:
Construction in Saudi Arabia - Key Trends and Opportunities to 2022 report provides detailed market analysis, information and insights into the Saudi Arabian construction industry, including:
  • The industry's growth prospects by market, project type and construction activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope:
This report provides a comprehensive analysis of the construction industry in Saudi Arabia. It provides:
  • Historical (2013-2017) and forecast (2018-2022) valuations of the construction industry in Saudi Arabia, featuring details of key growth drivers.
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants
Reasons for Purchase:
  • Identify and evaluate market opportunities using the researcher's standardized valuation and forecasting methodologies.
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts.
  • Understand the latest industry and market trends.
  • Formulate and validate strategies using the researcher's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.
Key Highlights:
  • The research expects the residential construction market to retain its leading position over the forecast period, with a share of 29.7% of the industry’s total value in 2022. The government aims to increase the rate of home ownership in the country from 47% in 2016 to 52% and 70% by 2020 and 2030 respectively. Accordingly, in February 2018, the government launched a new housing program worth SAR120.0 billion (US$32.0 billion) in order to provide home loans and support home down payments until 2030.
  • As part of its diversification efforts in order to reduce the reliance on the oil sector, in October 2017 the government announced plans to develop a 26,500km2 industrial zone called Neom in Tabuk. The project will focus on key sectors including biotechnology, food, advanced manufacturing, water and energy, mobility, media and entertainment, and technological and digital sciences.
  • The research expects the infrastructure construction market output to record a forecast-period CAGR of 5.20% in nominal terms, supported by the government’s effort to develop the country’s transport infrastructure. In April 2017, the General Authority of Civil Aviation announced plans to construct an international airport in Taif, Makkah. With a total investment of SAR3.8 billion (US$1.0 billion), this project includes the construction of terminals, runways, aircraft stands, taxiways, retail facilities, a passenger hall, pilgrim hall and an air traffic control tower across the 5,700ha site.
  • The tourism sector is considered a vital means of diversification efforts by the government; it aims to attract over 30 million tourists by 2030. In April 2017, the government announced plans to develop the country’s largest entertainment, cultural and sports city on a 334km2 area in Al Qidiya. Additionally, in August 2017, the government announced plans to transform 34,000km2 and 50 islands situated along the Red Sea coastline into a global tourism hub. These projects are expected to commence in 2019 and be completed in 2022.
  • The total construction project pipeline in Saudi Arabia, as tracked by the Construction Intelligence Center (CIC) and including all mega projects with a value above US$25 million, stands at SAR3.1 trillion (US$825.1 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards late-stage projects, with 56.1% of the total value in pre-execution and execution as of May 2018.
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1 Executive Summary

2 Construction Outlook: At-a-glance

3 Latest News and Indicators

4 Key Drivers and Risks
4.1 Economic Performance
4.2 Political Environment
4.3 Demographics
4.4 Risk Profile

5 Construction Outlook
5.1 All Construction
5.1.1 Outlook
5.1.2 Project analytics
5.2 Commercial Construction
5.2.1 Outlook
5.2.2 Project analytics
5.3 Industrial Construction
5.3.1 Outlook
5.3.2 Project analytics
5.4 Infrastructure Construction
5.4.1 Outlook
5.4.2 Project analytics
5.5 Energy and Utilities Construction
5.5.1 Outlook
5.5.2 Project analytics
5.6 Institutional Construction
5.6.1 Outlook
5.6.2 Project analytics
5.7 Residential Construction
5.7.1 Outlook
5.7.2 Project analytics

6 Key Industry Participants
6.1 Contractors
6.2 Consultants

7 Appendix
7.1 What is this Report About?
7.2 Definitions
7.3 About the publisher
7.4 About CIC
7.5 Disclaimer

List of Tables
Table 1: Saudi Arabia, Key Economic Indicators
Table 2: Saudi Arabia, Construction Output Value (nominal, SAR Billion)
Table 3: Saudi Arabia, Construction Output Value (nominal, US$ Million)
Table 4: Saudi Arabia, Top Commercial Construction Projects by Value
Table 5: Saudi Arabia, Top Industrial Construction Projects by Value
Table 6: Saudi Arabia, Top Infrastructure Construction Projects by Value
Table 7: Saudi Arabia, Top Energy and Utilities Construction Projects by Value
Table 8: Saudi Arabia, Top Institutional Construction Projects by Value
Table 9: Saudi Arabia, Top Residential and Mixed-Use Construction Projects by Value
Table 10: Saudi Arabia, Key Contractors
Table 11: Saudi Arabia, Key Consultants
Table 12: Construction Market Definitions
Table 13: Construction Risk Index Ratings and Scores

List of Figures
Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix
Figure 2: Saudi Arabia, Construction Projects Pipeline by Sector (SAR Billion)
Figure 3: Saudi Arabia, Real Estate Property Price Index
Figure 4: Saudi Arabia, Risk Comparison, Q2 2018
Figure 5: Saudi Arabia, Risk Comparison Review
Figure 6: Saudi Arabia, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate)
Figure 7: Saudi Arabia, Construction Output Value, Growth Matrix
Figure 8: Saudi Arabia, Construction Output Value, by Sector (SAR Million), 2013-2022
Figure 9: Saudi Arabia, Construction Projects Pipeline, Projected Annual Spending by Stage (SAR Billion), 2017-2022
Figure 10: Saudi Arabia, Construction Projects Pipeline, Value by Stage (SAR Billion)
Figure 11: Saudi Arabia, Commercial Construction Output by Project Type (SAR Million), 2013-2022
Figure 12: Saudi Arabia, Commercial Construction Projects Pipeline, Value by Stage (SAR Billion)
Figure 13: Saudi Arabia, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (SAR Billion)
Figure 14: Saudi Arabia, Industrial Construction Output by Project Type (SAR Million), 2013-2022
Figure 15: Saudi Arabia, Industrial Construction Projects Pipeline, Value by Stage (SAR Billion)
Figure 16: Saudi Arabia, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (SAR Billion)
Figure 17: Saudi Arabia, Infrastructure Construction Output by Project Type (SAR Million), 2013-2022
Figure 18: Saudi Arabia, Infrastructure Construction Projects Pipeline, Value by Stage (SAR Billion)
Figure 19: Saudi Arabia, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (SAR Billion)
Figure 20: Saudi Arabia, Energy and Utilities Construction Output by Project Type (SAR Million), 2013-2022
Figure 21: Saudi Arabia, Energy and Utilities Construction Projects Pipeline, Value by Stage (SAR Billion)
Figure 22: Saudi Arabia, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (SAR Billion)
Figure 23: Saudi Arabia, Institutional Construction Output by Project Type (SAR Million), 2013-2022
Figure 24: Saudi Arabia, Institutional Construction Projects Pipeline, Value by Stage (SAR Billion)
Figure 25: Saudi Arabia, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (SAR Billion)
Figure 26: Saudi Arabia, Residential Construction Output by Project Type (SAR Million), 2013-2022
Figure 27: Saudi Arabia, Residential Construction Projects Pipeline, Value by Stage (SAR Billion)
Figure 28: Saudi Arabia, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (SAR Billion)
Figure 29: Saudi Arabia, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 30: Saudi Arabia, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor)
Figure 31: Saudi Arabia, Headquarters of Key Consultants (% of Total Project Pipeline)
Figure 32: Saudi Arabia, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants)
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