The construction sector in Saudi Arabia is poised for solid growth, with over 4,700 active construction projects worth $852.3 billion and more than 700 projects set to begin work in the next few months, said a report released ahead of a major industry event to be held next year in Jeddah.  

The eighth edition of The Big 5 Saudi, a premier construction event in the region, will run from March 5 to 8 at the Jeddah Center for Forums & Events.

Of these active projects, around 170 of them are worth $1 billion or more, stated the report prepared by BNC Network for Big 5 Saudi, indicating the tremendous growth potential of the kingdom's construction market.

Nineteen months after its announcement, Saudi Vision 2030 is proving effective, with the kingdom’s construction sector showing increased growth potential, said the report titled “Saudi Arabia’s Construction Market Overview 2018 and Beyond.”

Currently, there are $284.3 billion worth of projects in the early stages of development in Saudi Arabia, it stated.

Thanks to recent reforms and renewed spending, construction activities are picking up after the slowdown that affected the industry over the past two years, the report added.

According to the BNC report, the ambitious Saudi Vision 2030 plan to move the economy away from oil profits is driving construction activities in both residential and non-residential segments.

Reforms aimed at increasing the private sector’s contribution in growth industries such as mining, manufacturing, and health care, are offering new investment opportunities in the form of joint ventures or public-sector partnerships, it added.

"Today, there are over 3,300 projects in the urban construction sector, which represent approximately 70 per cent of all construction activities in Saudi Arabia," revealed Nathan Waugh, portfolio event director of The Big 5 Saudi.

"Housing is indeed the most significant area of expenditure under the Saudi plan, aiming to grow the real estate sector contribution to GDP from 5 per cent to 10 per cent by 2030," he noted.

Moreover, the rapid growth of the Saudi population and strong urbanization trends are fueling the urban construction sector, he added.

According to Waugh, Saudi Vision 2030 is driving demand for construction products in the country.

"We see a rejuvenated interest in the Saudi construction market by international players this year,” said Waugh ahead of the eighth edition of The Big 5 Saudi.

"The exhibition will bring under one roof over 500 manufacturers of construction products from around the world. The three-day event is expected to attract 15,000 visitors," he added.-TradeArabia News Service