DUBLIN, October 28, 2021--(BUSINESS WIRE)--The "Construction in Saudi Arabia - Key Trends and Opportunities to 2025 (Q3 2021)" report has been added to ResearchAndMarkets.com's offering.
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 on infrastructure and housing development projects.
With the collapse of oil prices and disruptions due to the Coronavirus (COVID-19) outbreak, in December 2020, the government announced a SAR990 billion (US$264 billion) budget for 2021, marking a 7% cut in government spending this year. In 2021, the government allocated SAR101 billion (US$26.9 billion) towards capital expenditure, which marks a 26% decline compared to the previous budget of SAR137 billion (US$36.5 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 such as Neom (a proposed gigacity on the Egyptian-Jordanian border), 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 SAR150 billion (US$40 billion) into the local economy each year through 2025, with the PIF aiming to increase its assets to SAR4 trillion (US$1.1 trillion) by that year.
The report provides detailed market analysis, information and insights into Saudi Arabia's construction industry, including:
Saudi Arabia's construction 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 Saudi Arabia's construction industry
Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
This report provides a comprehensive analysis of the construction industry in Saudi Arabia. It provides:
Historical (2016-2020) and forecast (2021-2025) 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
For more information about this report visit https://www.researchandmarkets.com/r/5crt75
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