Saudi Arabia construction projects hit $1tn despite $163bn on hold
ProTenders' 2019 data shows Saudi Binladin Group remains top contractor in Saudi Arabia, followed by India's Larsen & Toubro
Construction projects worth $1.1tn (SAR4.2tn) are at various stages of development in Saudi Arabia as developers such as state-owned Saudi Aramco and contractors like Saudi Binladin Group and India's Larsen & Toubro work on major schemes under the kingdom's Vision 2030 push.
Among Saudi Arabia's largest developers are Aramco, King Abdullah City of Atomic and Renewable Energy, the country's Ministry of Housing, Ministry of Transport, and Saudi Electricity Company.
Under-construction projects make up 41% of the total figure, accounting for $460.8bn (SAR1.7tn), whilst 24% – or $269.5bn (SAR1tn) – is taken up by developments at the planning stage, according to construction listings website ProTenders.
Developments in the design and tender phase respectively account for $111.8bn (SAR419.4bn) and $115.6bn (SAR433.6bn) of the total $1.1tn figure.
Projects worth $162.7bn (SAR610.3bn) – or 15% of the total figure – are currently on hold in Saudi Arabia, as of ProTenders' March 2019 data.
Of the total $470bn-odd worth of ongoing projects in Saudi Arabia according to ProTenders, 45% of the figure – or $208bn (SAR780.2bn) – are infrastructure schemes, with urban buildings (34%) following closely at $161.2bn (SAR604.6bn).
Saudi Arabia's ongoing oil and gas projects, according to ProTenders data as of March 2019, amount to $101bn (SAR378.8bn) – roughly 21% of the $470bn figure.
Projections for Saudi Arabia's upcoming oil and gas developments show a 2% reduction in the number – of the $511bn (SAR1.9tn) upcoming schemes in the kingdom, only 19%, or $95.7bn (SAR359bn) will be oil and gas schemes. The share of infrastructure projects will see a major spike, with their share growing to 53%, or $270.8bn (SAR1tn).
SAUDI ARABIA'S TOP FIVE CONTRACTORS
Despite facing challenges over the last few years, Bakr Bin Laden-led contracting giant Saudi Binladin Group, which is currently involved with Makkah Grand Mosque – Third Expansion, is Saudi Arabia's top contractor.
The firm is followed by Indian construction giant Larsen & Toubro, on the list. Hanwha Engineering and Construction, Daewoo Engineering and Construction, and Saudi Pan Kingdom (Sapac) make up the list of Saudi Arabia's top five construction contractors, as of March 2019 data by ProTenders.
SAUDI ARABIA'S TOP FIVE CONSULTANTS
Saudi Consolidated Engineering Company (Khatib & Alami) is Saudi Arabia's top construction consultant according to the data website, followed by Egis Rail and Dar Al Handasah (Shair and Partners).
Also among Saudi Arabia's top five consultants are Omrania & Associates and Zuhair Fayez Partnership Consultants.
Q2 2019 OUTLOOK
According to ProTenders' forecasts, oil and gas projects will account for contracts worth $3.6bn (SAR13.5bn) of the total $8.9bn (SAR33.4bn) contracts likely to be awarded in Q2 2019.
Infrastructure developments will take up $3.2bn (SAR12bn) of contracts, ProTenders added.