Business Monitor International


Saudi Arabia Infrastructure Report

Published 27 January 2015

  • 85 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
Saudi Arabia Infrastructure Report

BMI View : Saudi Arabia 's infrastructure and construction sectors offer both scale and growth opportunities over our 10 year forecast period to 202 4 . We see 2015 being a bumper year of real growth at 10.5% year-on-yea r , with average growth over the forecast period at 8. 8 %. We forecast strong growth across all sectors over the medium term; the residential and non-residential sectors especially will drive growth over the long-term - specifically the industrial construction sector.

Key Trends informing BMI's View:

  • The continued dramatic fall in oil prices is not an immediate threat to infrastructure financing in Saudi Arabia, given the country's significant foreign reserves and centrality of infrastructure development to economic diversification plans.

  • Some industrial construction projects may be cancelled or postponed, specifically in the petrochemicals sectors. That said, manufacturing, metals and chemical projects should remain on track.

  • The security situations in both Iraq and Yemen have deteriorated heavily in recent months and have now spilt over into violent attacks in Saudi Arabia. Not only does this raise the chance that a Saudi military intervention in either state will occur - raising regional tension and making an attack within Saudi Arabia by AQAP or IS even more likely - but may also drain attention and funding away from major infrastructure projects.

  • We forecast that the transport sector will grow in real terms by 7.8% in 2015. With many of the major projects under development being awarded over the past four years - the majority of which will reach completion by 2018.

  • We are forecasting a bounce back in 2015 in the residential and non-residential sector, with 9.9% real growth and then for the sector to average 7.6% up to 2021.

  • Owing to heavy capital investment into the energy and utilities sector, it will be the outperforming infrastructure segment over our forecast period in terms of growth. We forecast that following...

Table of Contents

BMI Industry View
7
SWOT
8
Industry Forecast
10
Construction And Infrastructure Forecast Scenario
10
Table: Construction & Infrastructure Industry Data (Saudi Arabia 2012-2017)
10
Table: Construction & Infrastructure Industry Data (Saudi Arabia 2018-2023)
11
Project Awards Boost Long-Term Expectations
18
Transport Infrastructure - Outlook And Overview
19
Table: Transport Infrastructure Industry Data (Saudi Arabia 2012-2017)
19
Table: Transport Infrastructure Industry Data (Saudi Arabia 2018-2023)
19
Table: Transport - Major Projects Table
23
Energy And Utilities Infrastructure - Outlook And Overview
30
Table: Energy & Utilities Infrastructure Data (Saudi Arabia 2012-2017)
30
Table: Energy & Utilities Infrastructure Data (Saudi Arabia 2018-2023)
30
Table: Top Saudi Arabia Power Generation Projects
31
Table: Energy & Utilities - Major Projects Table
35
Residential/Non-Residential Building - Outlook And Overview
41
Table: Residential & Non-Residential Building Industry Data (Saudi Arabia 2012-2017)
41
Table: Residential & Non-Residential Building Industry Data (Saudi Arabia 2018-2023)
41
Table: Residential & Non-Residential Building - Major Projects Table
47
Industry Risk Reward Ratings
54
Saudi Arabia - Infrastructure Risk/Reward Index
54
Rewards
54
Risks
55
Middle East And North Africa - Infrastructure Risk/Reward Ratings
56
Table: MENA Infrastructure Risk / Reward Index
61
Market Overview
62
Competitive Landscape
62
Table: Company Financials Table
66
Company Profile
67
Al Rajhi Construction Group
67
Saudi Binladin Group
69
Global Industry Overview
72
Table: Construction Industry Value, Real Terms, % Change
73
Table: BMI's Top 5 Markets
77
Methodology
79
Industry Forecast Methodology
79
Sector-Specific Methodology
80
Risk/Reward Index Methodology
84
Sector-Specific Methodology
85
Table: Infrastructure Risk/Reward Index Indicators
85
Table: Weighting Of Indicators
86

The Saudi Arabia Infrastructure Report features Business Monitor International (BMI)'s market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.

BMI's Saudi Arabia Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Saudi infrastructure and construction industry.

Key Benefits

  • Benchmark BMI's independent infrastructure industry forecasts for Saudi Arabia to test other views - a key input for successful budgetary and planning in the Saudi infrastructure market.
  • Target business opportunities and risks in the Saudi infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Saudi Arabia.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant national and multinational company developments. These are broken down into Construction (social, commercial and residential), Transport (roads, railways, ports, airports etc), and Energy & Utilities (powerplants, pipelines and so on).

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the infrastructure and construction sectors and within the broader political, economic and business environment.

BMI Industry Forecasts

Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators, supported by explicit assumptions, plus analysis of key developments in the market and risks to the main forecasts. Indicators include:

Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).

Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads, railways, airports and ports and the energy and utilities sub-sectors of power plants and transmission grids, oil & gas pipelines and water infrastructure. This dataset is unique to the market.

The Reports also include analysis of latest projects across the infrastructure sectors (transport, utilities, commercial construction).

BMI’s Infrastructure Risk Reward Index

BMI’s Risk Reward Indices provide investors (construction companies, suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and  demographic data points to provides indices of highest to lowest appeal to investors, with each position explained.

Market Overview

An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry, including the key financial figures from some of the largest players in the sector.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Sources

The infrastructure Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

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Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc