JEDDAH — Under the patronage of Prince Mishaal bin Majed bin Abdul Aziz, Governor of Jeddah, the Silver Jubilee edition of Saudi Building & Interiors Exhibition (SBIE) organized by Al Harithy Company for Exhibitions, will be inaugurated Hani Abu Ras, the Mayor of Jeddah today (April 11) at Jeddah Center for Forums and Events.
The 2016 Saudi government’s budget has allocated around SR21 billion ($5.6 billion) for municipal services and SR24 billion ($6.4 billion) for infrastructure and logistics. In addition, healthcare and education also have received substantial allocations for construction of hospitals, schools and education facilities.
These factors are indicators of the strong potential of the construction and building sector which portends bright prospects for contractors, builders and suppliers of construction material.
The construction industry in Saudi Arabia will remain among the fastest growing in the world, supported by investment in buildings and infrastructure to diversify the economy. The drop in oil prices does not seem to have an impact on the viability of projects as the country’s fiscal position is robust and thus public investment plans are not expected to be greatly affected.
Saudi Arabia is the biggest building and construction market in the Middle East, valued at billions of dollars thanks to sustained and annually increasing government spending as well as huge private sector investments.
Saudi Arabia is the largest exporter of oil in the world. As a result, the Saudi economy is constantly on the rise and the construction sector specifically has seen significant increases in activity. The main trends within the construction sector are:
• The Saudi government has always been actively concerned with growing the infrastructure requirements. Indications show that this concern will remain at the forefront of Saudi decision-making.
• Huge demand for construction services is evidenced by a large demand for cement and other building materials, as well as the number of ongoing and new projects in Saudi Arabia.
• Government’s focus has increasingly turned to the housing shortage in Saudi Arabia, which is occurring as a result of the increasing growth in population.
• In keeping with demand, there has been a 50% increase in the construction of housing units in the Kingdom.
• Several agreements have been signed with qualified real estate developed companies inside the Kingdom and abroad to build 180,000 units across the country.
Saudi Arabia is in the midst of rapid economic expansion as it looks to develop its non-oil sector. Infrastructure projects include Riyadh Metro, Makkah Metro, Jeddah Airport, Riyadh Airport, apart from power and water and healthcare projects to the tune of $400 billion. More info