Linesight predicts GCC recovery in 2020 as Saudi projects total $1.6tn
Regional MD says GCC to recover from subdued performance as population growth, social reforms boost Saudi Arabia
Saudi Arabia’s construction industry — which currently has more than 5,000 projects valued at $1.6tn (SAR6tn) — is set to grow on the back of population growth, economic diversification, and social reforms, with cost and project management consultancy Linesight's Middle East director, Damien Gallogly, stating that construction activity across the GCC would start to 'recover' from early-2020.
Gallogly said the kingdom was focused on improving its transport-related infrastructure, including rail, port, and airport projects, in addition to increasing residential, healthcare, and tourism real estate units.
He added: “Without doubt, the kingdom remains the most active construction market in the region, signalling exciting times ahead.”
Saudi Arabia’s trillion-dollar project pipeline includes more than 150 schemes worth $3.3bn (SAR12.4bn) in the Tabuk region – located in the northwest of the kingdom – which were announced by Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud in November 2018.
According to Linesight, more than 600 projects are under way in the kingdom’s Qassim region and around 200 developments, valued at $1.1bn (SAR4.3bn), are active in Hail.
Linesight's portfolio includes the $4bn (SAR15bn) Thakher City in Makkah, and the Al Faisaliah District redevelopment project in Riyadh, which is aimed at upgrading the Al Khozama retail, hospitality and commercial complex.