The Saudi construction sector is booming with over 5,200 construction projects currently rolling out in the region's largest and most populous country, said a report released ahead of a major industry event in the kingdom.

The Big 5 Saudi, the kingdom's premier construction event, will run from March 10 to 13 at the Jeddah Centre for Forums and Events hosting more than 400 local and international exhibitors across dedicated product zones.

Valued at $819 billion, these account for 35 per cent of the total value of active projects across the GCC, stated the report by BNC Network.

Despite recent challenges faced by the sector attributed to low oil prices and a reported shortage of qualified workers, construction is recording a 4.1 per cent increase this year in Saudi Arabia, it stated.

A recent BMI research forecasts the sector's annualised average growth at 6.13 per cent from 2018 to 2022.

Roni El Haddad, the event director of The Big 5 Saudi, said: "The construction sector’s immediate outlook is extremely promising. The recent launch of the Public Investment Fund backed multi-billion-dollar Amaala resort in September, along with the already announced Neom and Red Sea Project, in what is already being dubbed the “Riviera of the Middle East”, is a proof of that.

“Saudi Arabia’s Vision 2030, along with significant investment in housing and infrastructure development promoted across the country by local authorities, are revitalising the construction industry and generating interest in a growing number of international players,” stated El Haddad.  

The urban construction sector is the largest contributor to the construction sector’s expansion with 3,727 active projects valued $386.4 billion, said BNC Network’s report.

The utilities sector is the second largest with 733 projects worth $95.6 billion, followed by transportation, with 500 projects valued $156.2 billion.

Some of the major urban construction projects in Saudi Arabia include the King Abdullah Security Compounds (Phase Five), and the Grand Mosque (Holy Haram Mosque expansion), each valued $21.3 billion and developed by the Ministry of Municipalities and Rural Affairs in Makkah.

Also in Makkah, a $1.7-billion hotel, the Makkah Residence Development (Phase Two) is expected to open its doors by the end of 2019 offering 3,000 five-star rooms, as Vision 2030 plans to attract 36 million pilgrims a year to the country’s holy places.

In the capital city, Riyadh, a $3.5-billion mixed-use development project called “The Avenues - Al Malqa” is due for completion by 2020 over an area of 1.7 million sq m. Set to open in 2022, the Mall of Saudi – An Narjis, developed by Majid Al Futtaim Group, is valued at $3.2 billion.

"In Riyadh, the Saudi Arabia National Guard is also building 6,000 villas over 7 million sq m with a $1.3 billion investment,"" explained El Haddad.

Jeddah’s skyline is expected to be enriched by the $1.1-billion Darb Al Harmain Complex at the end of 2018.  Also, the new Jeddah Downtown (Phase One), a mega urban development project worth $2 billion, will revamp the Corniche area with 12,000 new housing units by the end of 2022.

Mega projects like Neom, the city planned over 26,500 sq km in northwestern Saudi Arabia, along with the thousands already under construction across the country, are pushing the demand for innovative building solutions in the kingdom.

The organisers of The Big 5 Saudi, dmg events, said they expect 15,000 visitors, looking to source thousands of products for their projects, at the next edition of the event.

Beyond the traditional MEP Services, Building Interiors & Finishes, Construction Tools & Building Services, Building Envelope & Special Construction, in 2019 The Big 5 Saudi will introduce the all new Heavy Equipment, HVACR Equipment, Smart City Technology, Solar Equipment, and Urban Design & Landscaping Equipment zones.

El Haddad said the diversification of Saudi Arabia’s construction portfolio, which now spans from smart cities to hospitality infrastructure, from housing to entertainment facilities and parks, calls for a wide range of new building solutions and equipment.

"The Big 5 Saudi’s expanded product sectors reflect this growing need and offer an ideal platform for buyers and sellers to network and find new products and solutions in a highly professional environment," he noted.

A unique platform for construction industry professionals to network, secure qualified leads and close business deals, The Big 5 Saudi will also offer more than fifty complimentary CPD (Continuing Professional Development) certified workshops, he added.-TradeArabia News Service