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Industry News
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| Saudi Arabia’s construction sector leading and promising in the medium and long term |
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Buoyed by the steady growth in population thus driving the demand for affordable housing, the building and construction sector in Saudi Arabia is touting to record unprecedented growth in the coming years.
The total value of construction contracts awarded to contractors is set to witness an impressive US$ 63,383 million in 2012 registering a double-digit compound annual growth rate of 23.4 percent from its moderate US$ 22,152 million in 2008. The availability of vast amount of undeveloped urban land in addition growing population with increased per capita income are the primary driving force contributing to this progressive growth. Other factors that drives the market includes the steady growth in religious tourism, the impending implementation of the new mortgage laws in addition to the upcoming Economic city developments in the country.
Despite its promises to pose significant growth in the medium to long term, the Saudi construction market still suffers a few pangs in the form of project delays, conservative banking policies, delays in execution of laws and lack of transparency besides bearing the brunt of global economic slowdown.
However with the global economy showing gradual signs of recovery in addition to all the segments of construction sector such as the residential, rental, retail, infrastructure and commercial segments posing a strong growth the Saudi real estate market is all set to overcome the challenges to emerge a strong, leading and promising Industry in the medium and long term.
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| 04 Mar 2010 - Back |
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