Sector has bettered its performance of 4.9% in Q3 2012
Saudi Arabia’s construction sector grew by almost 5.7% year on year in the third quarter of 2013, making it the best-performing GDP component for the year.
Despite a market slowdown in the latter half of 2013, where it fell from 6.5% in Q2 2013 to its current value, Riyadh-based Jadwa Investment in a report said the sector had bettered its performance of 4.9% in Q3 2012, and recorded the highest growth among all GDP sectors.
One of the country’s largest contributors to non-hydrocarbon GDP, Saudi construction, of late, has suffered a decreased rate of construction, mostly owing to the Kingdom’s exodus of illegal expat workers.
“Slower growth in the construction sector compared with the previous quarter may reflect the combined effect of the recent changes and enforcement of labor market regulations, as well as slower construction activity during the summer months,” the Jadwa study said according to The Saudi Gazette.
“We, however, expect the impact of changes and enforcement of labor market regulations to be temporary, as the sector adjusts to this new norm. On the upside, the construction sector will continue to benefit from vast activity in building infrastructure, commercial and residential projects.”