DUBLIN--(BUSINESS WIRE)--Research and Markets has announced the addition of the "Construction in Saudi Arabia - Key Trends and Opportunities to 2020" report to their offering.
The industry's output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 7.05% over the forecast period, up from 6.35% during the review period (2011-2015).
The Saudi Arabian construction industry will continue to expand over the forecast period (2016-2020), following investments in transport infrastructure, healthcare, manufacturing plants, education facilities, energy and housing projects. However, low oil prices present significant negative risks to the forecast.
The government will continue to invest in healthcare, education and infrastructure construction to diversify the country's economy away from oil and to support economic growth. The government's White Land Tax initiative to address the country's housing shortage will also support industry growth.
There are, however, risks associated with the Saudi Arabian construction industry outlook, most notably low oil prices, a slowdown in economic growth, a large budget deficit and military intervention in Yemen.
Falling oil prices are expected to affect the growth prospects of the Saudi Arabian construction industry, as the country generates 73% of its total revenue from the oil sector.
Key Highlights:
- The government will cut subsidies and public spending, and increase domestic fuel prices and taxes to offset falling oil prices. A decrease in oil prices forced the government to reduce budget spending in 2016. However, the government has stated that key economic development projects will not be affected. It declared the total spending of SAR840.0 billion (US$224.0 billion) in the 2016 budget.
- The Arriyadh Development Authority (ADA) is working to improve transport infrastructure in Riyadh, the country's capital, in a bid to reduce traffic congestion, fulfil the demands of the growing population and support economic growth. Riyadh's population in is expected to increase from 5.7 million in 2012 to 8.2 million in 2030. Accordingly, the government is constructing the Riyadh metro project, a rapid transit system, for an investment of SAR85.0 billion (US$22.5 billion). The project includes the construction of 178km of six lines and 85 stations, and is expected to be complete by 2018.
Key Topics Covered:
1 Executive Summary
2 Industry Outlook
3 Key Issues and Developments
4 Market Data Analysis
5 Company Profile: Dar Al Arkan Real Estate Development Company
6 Company Profile: Abdullah AM Al Khodari Sons Company
7 Company Profile: Red Sea Housing Services Company, Ltd.
8 Company Profile: Mohammad Al-Mojil Group
9 Company Profile: The Al-Rushaid Group of Companies
10 Appendix
For more information visit http://www.researchandmarkets.com/research/4ndrh9/construction_in
