Saudi construction sector set for 5.1pc annual growth by 2028
RIYADH, 4 hours, 27 minutes ago
Saudi Arabia's construction output is likely to grow at an annual average growth rate of 5.1% between 2025 to 2028 supported by public and private investments in oil and gas projects, according to Research and Markets, a key data company.
In May 2024, the state-owned petroleum and natural gas company Saudi Aramco announced its plan to launch 99 projects between 2024 and 2026, aimed at boosting oil and gas output, enhancing treatment capacity, and modernizing facilities, said the company in its Q2 2024 report.
These projects include 58 oil, gas, and petrochemicals projects, 22 pipeline and distribution projects, and 19 civil and marine infrastructure projects.
Some of the specific projects under this initiative include the Marjan field gas lift program, Shaybah dry gas handling, and upgrades to the sulphur recovery units and the Ras Tanura refinery, said Research and Markets in the report.
Some of the largest investments will be made in development of three liquids-to-chemicals (LTC) complexes at Yasref, Samref, and Sasref refineries.
The Saudi construction industry is expected to grow by 4.6% in real terms in 2024, supported by investments in energy, tourism and industrial projects, it added.
According to official estimates, as of June 2024, the country has 255 tourism infrastructure projects worth SAR6.4 trillion ($1.7 trillion). The government aims to attract 150 million tourists annually, as part of its Vision 2030 plan.
Saudi Central Bank (SAMA) revealed that the total credit facilities provided to micro, small and medium enterprises (MSMEs) grew by 18.6% year-on-year in 2023, preceded by an annual growth of 13.6% in 2022.
As part of the National Investment Strategy (NIS), the government aims to improve the investment climate and increase net foreign direct investment (FDI) flows in line with its aim to increase the number of industrial establishments in the Kingdom from 8,800 in 2019 to 36,000 in 2035, it added.-TradeArabia News Service
