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3.9% Real Growth Achieved by Saudi Construction
Mar 19, 2010

Real estate grew by 1.8% in 2009, helping Saudi construction industry to attain 3.9% real growth.

According to a report from the Ministry of Finance, with real estate sector increasing by 1.8%, real growth in Saudi Arabia’s construction sector touched 3.9% in 2009, as per the news published by Al bawaba.

New construction and real estate projects throughout the country are driven by the continued investments from private sector and sustained government spending. The positive growth exhibited by the sector has led to an array of business opportunities of diverse nature, while propelling the demand for building material, innovative construction technologies and equipment in Saudi Arabia.

In addition, besides a broad spectrum of residential and commercial developments, the kingdom has also ventured into various agriculture, education, transportation and other development projects pertaining to infrastructure. This has further inflated the demand for expertise and specialized technology in the field of construction.

In addition to a wide range of commercial and residential developments, Saudi Arabia has also embarked on a diverse range of education, transportation, agriculture and other infrastructure development projects, which has further boosted the demand for specialized construction technology and expertise.

Furthermore, bolstered by the demand for reasonable housing, the building and construction sector in Saudi Arabia is boasting to register outstanding growth in the near future. The major driving force responsible for such a progressive growth is the rising population along with an increase in per capita income and the undeveloped urban land’s availability in vast amount.

According to a market research report titled “Saudi Arabia Housing Sector Outlook” from RNCOS, from only 0.2 Million in the year 2009, housing units demand is likely to reach 0.6 Million by 2015. This will, in turn, assist the country’s construction sector to follow the positive growth track.

Moreover, according to the industry experts, though the Saudi Arabia’s construction market commits to exhibit considerable growth in medium to long run, the market still faces some bottlenecks in the form of conservative banking policies, delay in implementation of laws, lack of transparency and delay in projects.

According to a Research Analyst at RNCOS, “As the global economy is demonstrating gradual signs of revival from the turmoil along with all the segments of construction industry, kingdom’s real estate market is geared up to come forth as a leading, robust and a bright industry in the medium and long run by overcoming all the challenges in its way.”

Related Market Research Reports:
UAE Construction Industry Outlook to 2012
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