Saudi Arabia Construction Market Data & Forecast to 2013
- 923 views
DescriptionWMI's Saudi Arabian Construction Market Data & Forecast to 2013 report is the essential source for Construction industry data and analysis covering Saudi Arabia, both at the top level and ...
DescriptionWMI's Saudi Arabian Construction Market Data & Forecast to 2013 report is the essential source for Construction industry data and analysis covering Saudi Arabia, both at the top level and providing in-depth category and channel insight. The report provides historical data and forecasts for the Saudi Arabian Construction industry in the period 2004-2013, detailed profiles and financial metrics covering the major market players, a breakdown of key recent M&A and partnership activity, and comprehensive analysis of the key factors driving the industry at consumer, market and company level.Executive SummaryThe Saudi Arabia construction industry grew at a CAGR of 9.93% for the period 2003-2008. Non-residential construction accounts for 67.2% of the Saudi Arabia construction industry's value, while residential construction accounts for the balance 32.8%. The construction market has contributed to more than 12.0% of the real GDP of Saudi Arabia (Saudi) over the last decade. Booming economy and increased income levels resulted in demand for residential units leading to demand exceeding supply due to the rapid growth in population. The non-residential (commercial and industrial building) segment also benefited from demand for corporate offices and industrial units because of increase in corporate activity. The construction sector is the third largest sector of the Saudi economy after oil, and Information and Communication Technology (ICT) and has experienced rapid growth in recent years. Saudi Arabia currently accounts for more than 50.0% of the total construction market in the Gulf Cooperation Council (GCC). The real estate sector in Saudi Arabia emerged only since 2006, when the stock market collapse led to the funds being channeled into the real estate sector. The entry of large real estate developers from the UAE like Emaar and Deyaar into Saudi Arabia also contributed to the growth of Saudi real estate and construction sector. One of the crucial factors driving the real estate market as well as economy is the absolute population and growth registered in it. Saudi Arabia has a very young demographic profile with people aged below 20 years constituting 45.0% of the total population. Along with this, rapid rate of urbanization (growth of the major cities) is also an important factor driving the real estate market. The creation of new airports, highways and even new cities has attracted construction professionals from all over the world. Saudi Arabian General Investment Authority is carrying out development strategy involving billions of dollars expenditure to build Greenfield economic cities around the country. The three main areas for construction in Saudi Arabia are Jeddah, Riyadh, Al-Khobar, Yanbu and Hail. Some of the major growth drivers for the construction industry are: Scale of development The real estate sector has been predicted to be one of the major factors driving the regional economic growth within Saudi Arabia. The real estate projects announced in Saudi Arabia like the six economic cities are mammoth and unprecedented in terms of size and cost involved. Four among these six economic cities will require an area of around 500 sq. km to be developed. According to the activities scheduled in 8th development plan, real-estate activity is expected to register CAGR growth of 5.80% during the period 2004-2009, increasing the share of real estate in real GDP of Saudi Arabia from 6.8% in 2004 to 7.2% in 2009.KeywordsSaudi Arabia Construction MarketCompanies MentionedSavola GroupDar Al Arkan Real Estate Development CompanySaudi Arabian Amiantit Co.Red Sea Housing Services Company LimitedSaudi Real Estate Co.
- Total Views
- Views on SlideShare
- Embed Views