Saudi Arabia’s state-backed initiatives driving growth in construction sector
Saudi Arabia’s state-backed initiatives, including NEOM and Vision 2030, are driving growth in the construction sector, attracting substantial domestic and international investments, an analysis showed.
Major projects and events fueling construction activities in the Kingdom
In its latest report, global consultancy firm Turner & Townsend highlighted that the construction activities in Saudi Arabia are also driven by the Kingdom’s preparations for EXPO 2030 and the 2034 FIFA World Cup.
Saudi Arabia leading global construction activity
Saudi Arabia emerged as the leader in global construction activity for the first quarter, with the Kingdom having $1.5 trillion of projects in the pipeline, according to a report released by real estate services firm JLL.
Accelerated development of Saudi Arabia through ambitious projects
“The stand-out story is the accelerated development of Saudi Arabia, where vast ambitions are being realized via projects like The Line, King Salman Park, and Diriyah Gate,” said Mark Hamill, director and head of Middle East real estate and major programs at Turner & Townsend.
Challenges and opportunities in the construction sector
The report highlighted that despite political uncertainties, substantial investments are driving growth in the Gulf region as countries seek to diversify beyond traditional energy sources.
Skilled labor shortages impacting construction activities in Saudi Arabia
The UK-based company pointed out that Saudi Arabia is facing a shortage of skilled labor crucial for materializing and fulfilling construction activities as planned.
Construction cost trends in the Middle East
According to the report, Qatar’s capital city Doha is the second most expensive market in the region, while Dubai has an average cost to build supported by high tourism activity and residential sector development.
Global outlook on construction industry
The report revealed that construction pipelines globally are set to grow this year, but skill shortage could remain a major concern.
US dominates rankings of most expensive places to build
The US dominated the rankings of the most expensive places to build, with six cities from the country grabbing their spots in the top 10 list.
Implementing technology to overcome challenges in construction sector
The report also highlighted that implementing technology in the construction sector could help overcome various challenges faced by the industry.