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The construction industry of Saudi Arabia displayed solid growth in the third quarter, with contract awards during Q3 2019 growing 164% versus the same quarter a year ago, according to a report by the US-Saudi Arabian Business Council (USSABC).
The value of contracts awarded in the third quarter of 2019 increased to SAR 47.8 billion, bringing the total awards for the January-September period to SAR 87.2 billion, up 117% year-on-year, the report showed.
The contracts awarded during the latest quarter continued the trend seen thus far in 2019 as the oil and gas sector led, followed by the real estate sector. This period witnessed the industrial sector amass the third-highest value of awarded contracts after a relatively slow pace during the previous two quarters. The three sectors together accounted for 80% of all contract awards during the quarter, the report explained.
The oil and gas industry generated SAR 16.4 billion or 34% of the total value of awarded contracts. The real estate sector garnered SAR 12.1 billion or 25% of the total value of awarded contracts. Finally, the industrial sector recorded SAR 9.6 billion or 20% worth of awarded contracts. Other notable contributing sectors included urban development, water, and transportation.
The biggest contracts awarded during the period include the SAR 6.2 billion award by Shomoul Holding to Nesma & Partners for a new mall to be built as part of The Avenues Riyadh development, a SAR 5.6 billion contract by Saudi Aramco for package nine of a new gas plant at Tanajib to Tecnicas Reunidas, and a SAR 4.8 billion deal to Samsung Engineering to build a new tyre plant in Jubail from the kingdom’s National Tire Corporation.
With construction activities continuing at an accelerated pace thus far in 2019, USSABC said the value of awarded contracts is on track to cross the SAR 200 billion mark for the first time since 2015.
Cavendish Maxwell is the MENA region’s leading firm of property consultants and chartered surveyors. If you are looking for professional real estate consultation or advice on property related matters, please view our services.
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BA (Hons) DipM
Head of Marketing
Sarah-Jane joined Cavendish Maxwell in January 2020 as Head of Marketing and is responsible for the development of the marketing strategy and execution across the Middle East region. An energetic and results driven marketer, Sarah-Jane possesses a wealth of multi-channel marketing experience, within both B2B and B2C environments which she has gained over a 25 year career. Prior to joining Cavendish Maxwell, Sarah-Jane held senior marketing positions for major developers in Dubai including Emaar, Dubai Properties and Dubai Sports City. She also worked for IWG as the Regional Marketing Director responsible for the MEA and APAC regions. Before relocating to the UAE in 2005, Sarah-Jane held various management roles in public and private sector companies in the UK including ten years at Royal Mail and seven years at the Bank of America.
Sarah-Jane is a member of the Chartered Institute of Marketing and has a BA(Hons) Degree in Business and Marketing