Posted on: Sunday 29 July, 2012 5:37
|Saudi Arabia eying boom in construction valued at $629 billion
Saudi Arabia’s construction sector is expected to go through a period of accelerated growth during the next few years, with a value of projects estimated at $629 billion.
More than $500 billion of investment opportunities in energy, transportation, education, healthcare and other vital economic sectors are among established projects, making the Kingdom a leading investment hub for construction work.
The kingdom is considered to be the region’s top economy, with a growing large young population and highly competitive business environment and national initiatives in infrastructure development.
About $2 billion worth of road projects are under development, alongside with pipeline projects expected to increase by an average of 4 percent over the next four years.
Drake & Scull International PJSC (DSI), a regional specialist in integrated design, engineering and construction, told Saudi Gazette on Saturday that major projects vary between government and education to healthcare and hospitality sectors. Other available opportunities are in mechanical, electrical and plumbing (MEP), civil contracting, water, power and railroads, opening up within the Saudi market, DSI reported.
“While some construction markets in the region have stalled to an extent, the Saudi construction sector is poised to achieve over 5 percent growth in 2012,” said Saleh Muradweij, Managing Director of Drake & Scull Construction to Saudi Gazette.
“There has been a huge influx of multinational firms eager to take advantage of the positive market conditions. For DSI, Saudi Arabia represents a vital channel for growth and a major beneficiary of our proven and unique technologies. We have a very healthy local pipeline which we expect to further expand within the next few years,” Muradweij said.
However, DSI- had participated in projects, such as the King Abdulla University of Science and Technology, the Intercontinental Hotel and Conference Center, and the King Abdullah Petroleum Studies and Research Center which was DSI KSA’s biggest contract for 2011.