Saudi Arabia leads GCC with 5,000 projects worth $1.6 $1.6 trillion
According to Linesight, currently Saudi Arabia holds the greatest potential for the construction sevtor within the GCC, with more than 5,000 capital projects worth well over $1.6 trillion in the pre execution stage. Long term positive factor such as economic diversification, social reform, esğecially in Saudi Arabia and general demographic demand, combined with renewed government ambition, will be the key drivers.
As per Linesight, that has a GCC pipeline worth over $10 billion, activity in the construction sector throughout the GCC countries, will begin to recover steadily from the beginning of 2020, after a challenging period of subdued performance. That invludes over 150 development project worth $3.27 billion, for the Tabuk region, in the northwest of Saudi. Besides, The King launched more than 600 projects in Qassim 400 km north west of Riyadh, worth $4.36 billion and around another 200 new projects in Hail, in the north west of the Kingdom, valued at $1.14 billion.
However, the centrepiece of its ambitious Vision 2030 initiative is the $500-billion, 26,500 square kilometre, Neom project, situated along 468 km of Saudi’s Red Sea coast close to Egypt and Jordan. The first phase of Neom is due for completion in 2025.
Damien Gallogly, regional director for the Middle East at Linesight, said: “Saudi Arabia is also actively seeking to improve its rail, airport, port and other transport-related infrastructure, as well as increase residential supply, healthcare, leisure and tourism facilities. Without doubt, the Kingdom remains the most active construction market in the region, signalling exciting times ahead.”
Gallogly added, “To underpin social demand, the Saudi government has overseen a major cultural and social transition since 2017, which has allowed mixed audiences at cinemas and concerts and brought an end to restrictions on women travelling alone.”
The project developments in Linesight’s own GCC pipeline are currently worth in excess of $10 billion, with average annual revenue growth of over 6 per cent. Some of the more prominent developments in Saudi Arabia include the $4 billion Thakher City mixed-use project in Makkah and the Al Faisaliah District redevelopment project in Riyadh, which involves upgrading the Al Khozama, retail, hospitality and commercial complex
Source: Trade Arabia
Fulya Altunyay/ [email protected]