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Report by Tazeen Azeem 
Saudi Arabia’s construction Industry 
Saudi Arabia’s construction industry has been forecast to be one of the Kingdom’s best performing sectors in upcoming years, with an increasing flow of state contracts coming its way. However, bottlenecks in the materials supply chain and high demand for labor and resources could push up prices. 
The construction sector in the Middle East and North Africa (MENA) region would be underpinned by massive investments from Riyadh. While many other countries in the region are scaling back their construction spending, Saudi Arabia – along with Qatar – are in the process of stepping up outlays for building work. 
The construction industry is already one of the Saudi Arabia’s high-performance sectors, having expanded by 11.6% in 2011 – second only to manufacturing and well up on the overall 6.8% increase in GDP – according to a report issued by Riyadh-based Jadwa Investment at the end of December. 
Scope of construction in KSA 
Saudi Arabia has in the last thirty years experienced a huge volume of work in the field of construction. This is because the wealth created by the oil industry and the economic impetus it has given the country. This has resulted in very rapid growth and transformations during that period. The high living standards of the people of Saudi Arabia have generated many manufacturing and building employment opportunities. The growth of towns has accelerated as a result of high population growth. Large and complex projects have been built, attracting contractors and construction companies from all over the world.

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Saudi Arabia's construction Industry

  • 1. Report by Tazeen Azeem Saudi Arabia’s construction Industry Saudi Arabia’s construction industry has been forecast to be one of the Kingdom’s best performing sectors in upcoming years, with an increasing flow of state contracts coming its way. However, bottlenecks in the materials supply chain and high demand for labor and resources could push up prices. The construction sector in the Middle East and North Africa (MENA) region would be underpinned by massive investments from Riyadh. While many other countries in the region are scaling back their construction spending, Saudi Arabia – along with Qatar – are in the process of stepping up outlays for building work. The construction industry is already one of the Saudi Arabia’s high-performance sectors, having expanded by 11.6% in 2011 – second only to manufacturing and well up on the overall 6.8% increase in GDP – according to a report issued by Riyadh-based Jadwa Investment at the end of December. Scope of construction in KSA Saudi Arabia has in the last thirty years experienced a huge volume of work in the field of construction. This is because the wealth created by the oil industry and the economic impetus it has given the country. This has resulted in very rapid growth and transformations during that period. The high living standards of the people of Saudi Arabia have generated many manufacturing and building employment opportunities. The growth of towns has accelerated as a result of high population growth. Large and complex projects have been built, attracting contractors and construction companies from all over the world.