A RISING population, plans to overcome the housing shortage, and efforts to develop the transport network and renewable energy infrastructure will set the Saudi Arabian construction industry on track to record a growth of 10.98 per cent CAGR (compound annual growth rate) until 2018, a report said.
The market recorded a CAGR of 10.06 per cent during the review period (2009-2013), noted Construction in Saudi Arabia – Key Trends and Opportunities to 2018 industry research released by RnRMarketResearch.com, a US-based market research firm.
During the review period, growth in the construction industry was supported by the Ninth Five-Year Development Plan implemented for the period 2010-2014. Growth in the tourism sector and investments in the infrastructure and residential markets will support the industry’s expansion over the forecast period (2014-2018).
Investments in the travel and tourism sector are expected to reach SR33.5 billion ($8.9 billion) by 2020. In 2014, the Saudi Commission for Tourism and Antiquities (SCTA) announced plans to develop the hospitality and aviation markets, to increase the tourism sector’s contribution to the economy.
Industrial construction will be supported by the government’s focus on diversifying the country’s economy. According to the Central Department of Statistics and Information, the Saudi construction industry’s contribution to GDP (gross domestic product) increased from 4.3 per cent in 2011 to 4.8 per cent in 2013.