Saudi construction sector to grow 4pc
Riyadh, May 18, 2011
Saudi Arabian construction industry is poised to achieve a 4 per cent growth to reach a value of SR87 billion ($23.19 billion) this year, according to a report.
The sector’s annual growth is expected to be maintained at the same rate till 2015, a senior Drake & Scull International official said quoting the Saudi Arabia Infrastructure Report for the second quarter of 2011.
Recent reports said over SR375 billion worth of social and economic infrastructure projects are under way or in the pipeline in Saudi Arabia.
“Saudi Arabia has maintained a strong and sustainable demand for infrastructure projects, which is due to the growing Saudi national population with strong demographics, as 66 per cent of the population is under 25, in addition to the expanding economy,” said Khaldoun Tabari, CEO, Drake & Scull International PJSC (DSI), commenting on his company’s participation in The Euromoney Conference in Riyadh.
“The significant number of contracts in the tendering phase has also peaked investor interest in Saudi Arabia, with many regional construction companies focusing on the country for opportunities. Additionally, the SR580 billion national budget, which is the largest state expenditure to date, the SR290 billion homebuilding fund and the latest mortgage law represent a strategic incentive for our company to further expand and seek growth in the kingdom’s attractive market,” Tabari said.
DSI, a regional market leader in integrated design, engineering and construction disciplines of mechanical, electrical and plumbing (MEP), civil contracting, and water and power, is well-known for its accumulated technical expertise in the region since 1966 across the residential, commercial, aviation, healthcare, education and transport industries, in addition to its local alliances with major developers such as Aramco and Rayadah (the investment arm of the Saudi government’s Public Pensions Agency).
The company has completed several major projects in the kingdom since the early 1970’s. The company recently secured the iconic King Abdullah Petroleum Studies and Research Centre (KAPSARC) project in Riyadh.
DSI executive director Saleh Muradweij said the company has deployed around 1,200 people on the KAPSARC site and the number is expected to grow to around 3,500 in a few months time.
“The design coordination process is almost over. The substructure (foundations and basement) work has also been completed. Currently, primary steel erection is ongoing for the IT Center and the Conference Centers. The superstructure concrete works has also started at the Research Center,” he said. – TradeArabia News Service