Infrastructure Sector In Saudi Arabia – Market Size, Share & Trends Analysis 2021

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Market Overview

The forecast period sees Infrastructure Sector In Saudi Arabia growing at an estimated CAGR of approximately 6.6%.

Saudi Arabia announced a trillion-dollar pipeline for infrastructure projects that will diversify the economy from oil. It also intends to position the kingdom as a global center for logistics and investment. There are many new opportunities, such as smart cities and tourism, created by the development plan.

Qiddiya, 45km west of Riyadh, is being developed to be a city for entertainment and sports. The first phase of the project will be completed in 2022. The project has initial infrastructure costs of US$ 8 billion and will require additional investments to reach its 17 million visitors annually by 2035. Amala, a luxury wellness tourism project worth USD 3bn, was built near NEOM in the northwest. It will open its first phase in 2020.

To rekindle investor interest in older economic cities projects such as King Abdullah Economic City, the Economic Cities Authority was established. Others are designed to address specific social challenges. The Sakai program is a housing program that provides housing options to thousands of Saudis to address affordable housing. The High Commission for the Development of Arriyadh has signed the largest civil-engineering contract in the world for a six-line metro worth USD 22.5bn. Meanwhile, the Ministry of Energy, Industry, Mineral Resources (MEIM) plans to develop 9.5 GW of renewable electricity by 2023.

Scope of this report

Infrastructure Sector In Saudi Arabia covers the expanding construction projects in various sectors such as Social Infrastructure, Transportation Infrastructure, and Extraction Infrastructure. The report analyzes the competitive landscape and key players in Saudi Arabia’s infrastructure sector. The report also examines the market impact of COVID-19.

  • By Infrastructure segment
    • Social Infrastructure
      • Schools
      • Hospitals
      • Defense
      • Other
    • Transport Infrastructure
      • Railways
      • Roadways
      • Airports
      • Waterways
    • Extract Infrastructure
      • Power Generation
      • Transmission & Distribution of Electricity
      • Water
      • Gas
      • Telecoms
    • Manufacturing Infrastructure
      • Metal and Ore Production
      • Petroleum Refining
      • Chemical Manufacturing
      • Clusters and industrial parks
      • Other

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Key Market Trends

Growth in Energy & Power Sector:

The Infrastructure Sector In Saudi Arabia will be affected by the pace of change, as it will have to adapt to meet changing customer needs and technological innovations.

Saudi Arabia’s digital transformation will be rapid as an investment of USD90 billion accelerates Vision 2030 sustainability, R&D, and manufacturing goals.

SEPCOIII Electric Power Construction Co is a subsidiary of POWERCHINA and signed an engineering procurement contract with Saudi Electricity Company in 2019 for the PP13 power station project in Saudi Arabia.

Increase in GDP

As part of the OPEC+ agreement, the Kingdom of Saudi Arabia made significant reductions in its oil production in 2019. These actions have helped reduce GDP growth to 1.7% (y/y), in Q1 2019, from 2.4% in 2018. Saudi Arabia’s oil production cut was more profound than promised, as it produced 9.65mbd in July, compared to the 10.3mbd voluntary limit under the OPEC+ agreement; This is despite US shale production increasing in the first half of 2019.

Saudi Arabia seeks to attract nearly USD 429 billion in private sector investments for its landmark infrastructure and industrial program over the next ten years. The acquisition is part of its economic diversification campaign.

The Fiscal Balance Program’s balanced budget target for 2023 is dependent on fiscal consolidation and higher oil prices. With a shrinking trade surplus due to lower oil export receipts, higher private demand, and Vision 2030-related imports; the current account surplus will increase.

Competitive Landscape

This Infrastructure Sector In Saudi Arabia report focuses on the leading players in Saudi Arabia’s infrastructure sector. Market fragmentation is a significant factor driving market growth. Future projects, as well as other factors, are also expected to drive the market.

Major Players

  1. EL SEIF GROUP COMPANY LTD
  2. Bechtel
  3. CB&I LLC
  4. China Energy Engineering Corp. Ltd.
  5. China Railway Construction Corp. Ltd

 

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