$1 trillion of projects planned or underway in the region’s biggest construction projects market – report
Saudi Arabia has a pipeline of over $250 billion worth of projects under development that have not yet seen their main construction contracts awarded, according to a new report.
The value of unawarded projects in the kingdom accounts for about 39% of the GCC total, according to the “Saudi Arabia 2017: Delivering Vision 2030,” report by MEED.
That makes Saudi Arabia the region’s biggest projects market, the report said.
The kingdom’s energy sector has the biggest pipeline of unawarded project contracts, with $82bn worth of projects accounting for about 33% of the national total. The construction sector is the second biggest segment at 29% with the transport sector third at 27%.
Together, power, construction and transport account for about $225bn of unplaced contracts, almost 89% of the total value of contracts in the kingdom that are at the pre-execution stage.
“This report confirms that, despite the challenges we have seen over the past two years as a result of the fall in oil prices, Saudi Arabia continues to be the biggest and most important market in the region,” said MEED Editorial Director Richard Thompson.
“And anybody serious about growing their business in the region needs to understand the fundamental changes taking place in the kingdom,” Thompson added. “In particular, it is vital to understand how Riyadh will implement its plans to increase private sector participation in the implementation of its strategic plans.”