Saudi Arabia is developing $80bn (SAR 300bn) worth of projects, reinforcing its growth vision, while approximately $173bn (SAR 648bn) worth of projects are under tender in the GCC.
The Big 5 Saudi Construction Leadership Summit – a leading construction platform that highlights the latest technologies from world-leading brands – is returning to Riyadh for the second consecutive year.
In 2020, the GCC witnessed a drastic decline of 35% in total contract awards of construction projects; directly correlated with lower government spending, falling oil prices, and most notably the COVID-19 pandemic.
Despite these factors resulting in 2021 being the worst for the market in almost two decades, Saudi Arabia’s standing as the region’s largest economy should encourage optimism, according to a senior official from Sovereign Saudi Arabia.
Big 5 to reinforce Saudi Arabia’s growth
Elaborating the multiple reasons why the GCC is well-positioned for a strong resurgence, Paul Arnold, managing director of Sovereign Saudi Arabia, said: “As Saudi Arabia strives to reduce its dependence on oil and simultaneously diversify the economy, efforts to ramp up PIF (Public Investment Fund) tendering in recent months have and will continue to help achieve the advancement of Vision 2030.
“Since the summer of 2021, NEOM alone has entered into full-scale construction with development worth an approximate $500bn (SAR 1.8tn). In addition, there are still $720bn (SAR 2.7tn) worth of projects under the PIF program, where only 1% have so far been awarded.”
Currently, there is over $2.3tn (SAR 8.6tn) of known planned and un-awarded projects in the GCC pipeline, and the KSA has the largest share of this at $1.18tn (SAR 4.43tn).
The UAE has about half of Saudi Arabia’s total at just under $65bn (SAR 243bn), followed by Kuwait, Oman, and Qatar which each has between $125bn (SAR 468bn) and $170bn (SAR 637bn) in future projects.
Arnold added: “Even if only half of the scheduled projects are to go ahead, this would still compare favourably with the more than $1.2tn (SAR 4.5tn) worth of contracts that have been awarded in the region over the past decade.
“The Big 5 Saudi Construction Leadership Summit has been known to spur collective collaboration, and with projected figures indicating a very healthy short-term pipeline, the 11th annual edition couldn’t be happening at a better time.
“I strongly encourage those within the industry to attend, as the event is an international arena with 30 countries scheduled to exhibit the latest technologies which will assist in propelling the sector forward.”
The industrial revolution continues to accelerate innovation and progress across all sectors, and the construction market has been no exception. Emerging technologies such as 3D printing, and the internet of things are increasingly being employed on projects; and as digitalization gains momentum, clients are demanding greater efficiency and reduced costs.
The Big 5 Saudi Construction Leadership Summit will further introduce industry enhancing opportunities by serving as a catalyst to discussions centred around key themes such as economy, sustainable development, leadership, investment, technology, and people.
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