Saudi Arabia has 5,000 construction projects worth $820bn
This pipeline includes the Grand Mosque's expansion (Makkah) and Mall of Saudi – An Narjis (Riyadh)
More than 5,000 construction projects worth $819bn (SAR3tn) are under way in Saudi Arabia, the Gulf’s largest and most populous country, according to the organisers of The Big 5 Saudi. Citing market research, the show’s organisers said that these 5,200 developments account for 35% of the value of the Gulf’s active projects, with Saudi’s pipeline including gigaprojects such as Neom, and other schemes focused on the long-term goals of Vision 2030.
Saudi Arabia’s major urban construction schemes include Phase 5 of King Abdullah Security Compounds, and the expansion of the Grand Mosque. Both projects are said to have a development value of $21.3bn (SAR80bn) and are being developed by the country’s Ministry of Municipalities and Rural Affairs in Makkah.
The holy city is also witnessing the development of the $1.7bn (SAR6.4bn) Phase 2 of Makkah Residence hotel, which is due to open by the end of 2019 with 3,000 five-star rooms. The hotel is expect to support Saudi Vision 2030’s ambition to welcome 36 million annual pilgrims to the country.
Riyadh, meanwhile, is home of the $3.5bn (SAR13bn) mixed-use The Avenues – Al Malqa project that is due to complete in 2020. Mall of Saudi – An Narjis, the $3.2bn (SAR12bn) mall being developed by the UAE’s Majid Al Futtaim Group, is due to open by 2022 in the Saudi capital. Saudi Arabia National Guard is also building 6,000 villas worth $1.3bn (SAR4.9bn) across 700ha of land in Riyadh.
Jeddah is not far behind in terms of a busy development pipeline, which includes the $1.1bn (SAR4.1bn) Darb Al Harmain complex that will likely complete by the end of 2018. Phase 1 of Jeddah Downtown, the $2bn (SAR7.5bn) megaproject, is expected to revamp the city’s Corniche area with 12,000 new homes by the end of 2022.
“Despite recent challenges faced by the sector, attributed to low oil prices and a reported shortage of qualified workers, construction is recording a 4.1% increase this year in [Saudi Arabia],” the statement by DMG, citing BNC Network’s report, added. A separate note by BMI Research forecasts the kingdom’s construction sector will grow by 6.13% each year between 2018 and 2022.
Commenting on the prospects for construction firms wishing to enter Saudi Arabia, Roni El Haddad, event director of The Big 5 Saudi, said: “The construction sector’s immediate outlook is extremely promising. The recent launch of the Public Investment Fund backed multi-billion dollar Amaala resort in September, along with the already announced Neom and Red Sea Project […] is a proof of that.
“The diversification of Saudi Arabia’s construction portfolio, which now spans from smart cities to hospitality infrastructure, from housing to entertainment facilities and parks, calls for a wide range of new building solutions and equipment. The Big 5 Saudi’s expanded product sectors reflect this growing need.”
The Big 5 Saudi show will be held on 10-13 March 2019 at Jeddah Centre for Forum and Events.