Saudi Arabia is making significant strides toward realizing its Vision 2030 goals with the introduction of a new contractor rating database in the construction industry. This initiative, spearheaded by the Saudi Contractors Authority (SCA), is a crucial part of a comprehensive national strategy aimed at improving the quality and efficiency of the Kingdom’s construction sector. This sector plays a pivotal role in the successful delivery of Vision 2030 projects, which are valued at an estimated SR1.2 trillion ($319 billion).
The contractor rating database is specifically designed to enhance opportunities for contractors by enabling them to focus on projects that align with their areas of expertise. By promoting specialization, this approach is expected to elevate the quality of work across the entire sector. The SCA’s broader mission includes organizing and standardizing the industry by implementing high-quality benchmarks, fostering innovation, developing skills, improving communication, and ensuring the long-term economic sustainability of the construction industry.
During a recent ceremony highlighting the SCA’s achievements over the past three years, the authority’s chairman emphasized the critical importance of developing a robust contracting sector. This sector is envisioned as the Kingdom’s “executive arm” for executing the ambitious plans under Vision 2030, which are set to transform Saudi Arabia’s infrastructure and overall economy.
18,000+ contractors registered by SCA
The SCA’s efforts have already yielded substantial results. Over the past three years, the authority has increased the number of registered contractors by an impressive 400%, bringing the total to over 18,000, including 1,200 international firms. This growth underscores Saudi Arabia’s commitment to fostering a strong and competitive construction industry.
$91.36 billion projected construction market by 2029
In addition to expanding its contractor base, the SCA has been proactive in establishing international partnerships. The authority has signed more than 10 agreements and memorandums of understanding with major global contracting entities and has actively participated in over 50 government committees. These efforts are aimed at fostering global cooperation and integrating best practices into the Saudi construction sector.
In a significant move in 2023, the National Housing Co. and the SCA signed a memorandum of understanding (MoU) during the Future Projects Forum in Riyadh. This MoU is focused on developing a platform to enhance cooperation, drive sector development, and improve operational efficiency. This collaboration is expected to be instrumental in advancing the goals of Vision 2030.
The SCA, as a semi-governmental organization, plays a vital role in addressing the challenges facing the contracting sector. Its efforts are geared toward creating a more attractive and efficient environment for both local and international contractors. The SCA’s influence extends beyond Saudi Arabia, as it now leads the contracting sector in 57 countries after securing the presidency of the Islamic Contractors Union. The Kingdom has also become the headquarters for this union, further cementing Saudi Arabia’s leadership in the global construction industry.
The Saudi contractor industry is experiencing unprecedented growth, driven by substantial investments across diverse sectors and ambitious projects under Vision 2030. The Kingdom’s construction market has become one of the largest in the Middle East and North Africa, with an estimated value of $70.33 billion in 2024, projected to reach $91.36 billion by 2029, according to the US International Trade Administration. This rapidly expanding market presents significant opportunities for both local and international contractors across residential, commercial, industrial, infrastructure, transportation, and energy sectors.
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