PUBLISHER: GlobalData | PRODUCT CODE: 1086916
PUBLISHER: GlobalData | PRODUCT CODE: 1086916
The construction industry in Saudi Arabia is expected to expand by 4.9% in real terms in 2022, supported by a rise in oil prices and production levels, coupled with continued progress in the country's diversification plans. The country's oil revenue in the first half of the year grew by 75% year on year (YoY), increasing from SAR248.7 billion ($66.3 billion) in H1 2021 to SAR434 billion ($115.8 billion) in H1 2022, boosted by the surge in prices. The rise in oil prices has bolstered the government's funds; in August 2022, the Finance Ministry said that the budget surplus reached SAR78 billion ($20.8 billion) in Q2 2022. This could free up funding for the country's ambitious diversification plans. According to the General Authority of Statistics (GaStat), the construction industry's value add grew by 4.4% YoY in the first half of this year. Although the industry is expected to remain stable in the second half of this year, downside risks in the short term could arise due to supply chain disruptions, rising wage costs, and the tightening of monetary policy.
GlobalData expects the Saudi Arabian construction industry to register an average annual growth of 4.4% from 2023 to 2026, supported by investments in the transport, research, renewable energy, housing, and tourism sectors. The government aims to produce 27.3GW of renewable energy by 2024 and 58.7GW by 2030. To support this target, the Saudi Power Procurement Company (SPPC) has launched five renewable energy projects including three wind projects and two solar projects as part of the Ministry of Energy's National Renewable Energy Program. In September 2022, the Ministry of Municipal and Rural Affairs and Housing signed an agreement with the National Housing Company to invest SAR40 billion ($10.7 billion) to construct 150,000 housing units in 11 cities by the end of 2030.
The report provides detailed market analysis, information and insights into the Saudi Arabia's construction industry, including -
This report provides a comprehensive analysis of the construction industry in Saudi Arabia. It provides -