The latest study on the Industrial Growth of Construction in Saudi Arabia – Key Trends and Opportunities to 2025 (Q3 2021) – has been published and offers detailed insights into the market.
The report contains different market predictions related to revenue size, production, CAGR, consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary and SWOT analysis.
The construction industry in Saudi Arabia is expected to expand by 2.9% in real terms this year
The construction industry in Saudi Arabia is expected to expand by 2.9% in real terms this year, after contracting by 0.4% in 2020; the industry’s output this year will be supported by the easing of restrictions, gradual recovery in overall economic conditions and investments in the healthcare sector. The industry is projected to continue recovering over the remainder of the forecast period, registering an annual average growth of 4% between 2022-2025, supported by the government’s investment in infrastructure and housing development projects.
In 2021, the government allocated SAR 101 billion towards capital expenditure
With the collapse of oil prices and disruptions due to the Covid-19 outbreak, in December 2020 the government announced a SAR 990 billion budget for 2021, marking a 7% cut in government spending this year.
In 2021, the government allocated SAR 101 billion towards capital expenditure, which marks a 26% decline compared to the previous budget of SAR 137 billion. Of the total capital expenditure in 2021, 19% was allocated for education, 18% for health and social development and 5% for infrastructure and transportation. The government will maintain its commitment towards Vision 2030 goals, particularly in areas such as the housing program, quality of life program and mega projects, while allocating contingent funds towards addressing the risks related to the pandemic. Over the forecast period, the construction industry’s output will be supported by the huge pipeline of projects that includes Neom, the Red Sea Project, AMAALA and Qiddiya.
In March 2021, Crown Prince Mohammed bin Salman, architect of the Saudi Vision 2030 programme, stated that the state-backed Public Investment Fund (PIF) will pump at least SAR 150 billion into the local economy each year through 2025, with the PIF aiming to increase its assets to SAR 4 trillion by that year.