Skills investment key to Saudi success

Last month, the Saudi government announced a 16% increase in total project spending, laying out a plan to plough US $70bn into construction projects during 2010 in an effort to attain a 4.5% economic growth rate within the year.

And one project management expert has claimed that contractors must look to invest in project management skills in order to deliver on that order.

“Projects being planned throughout KSA in 2010 will require systematic management and a Saudi workforce capable of dealing with any possible operational problems. Our challenge is to develop and build the know-how needed by the burgeoning local projects sector to fulfil its role in sustained economic recovery,” said Bassam Samman, founder and CEO of CMCS, a regional project portfolio management (PPM) provider.

Companies such as Aramco, SABIC, Ministry of Interior, Royal Commission and other big players in Saudi are actively encouraging staff to take up professional training and certification courses, while CMCS has introduced a new certified training program – the first to be recognised by Oracle University in the KSA to develop project management talent.

“Through our partnership with Oracle Primavera we will empower project-driven organisations to create a PPM-supported environment that promotes the selection of the right projects that best fit their strategic goals and their efficient execution,” continued Samman.

“CMCS strongly believes that this environment can only be created by giving organisations access to the latest PPM processes, tools and best practices. We promote an empowerment model that focuses on transferring knowledge to our clients rather than making them dependent on others to run their projects.”

The KSA’s public expenditure could reach 35% of GDP in 2010, with King Abdullah Bin Abdul Aziz Al Saud recently announcing a national budget that has increased 14% on 2009 – the largest in its history.

The government has allocated $70bn for new investment projects and $37bn for education. The municipal sector has been granted $6bn, the transport and telecommunications sector $6.5bn, and the water, industrial and agricultural sector $12bn.

The Saudi real estate sector is expected to post a growth rate of between five and seven per cent year-on-year until 2012, backed by strong domestic housing demand, expanding business development projects and a rapidly growing hospitality sector.