Business Monitor International


Saudi Arabia Infrastructure Report

Published 01 May 2014

  • 112 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 : The second half of 2014 is set to see the lessening of the effects of new labour laws and the instigation of some of the glut of projects which were awarded in 2013, making for solid market conditions. We are maintaining our construction industry growth forecasts, which see growth at 7.2% in 2014 . W ith project awards reaching record levels in 2013 , adding to an already sizable backlog awarded since 2011, we believe the sheer size of the project pipeline in Saudi Arabia will ensure high growth rates over the medium term.

Labour shortages, as a result of the government's crackdown on visas and drive for Saudisation, and a cement shortage have been the overriding issues within the construction market so far over 2014. Projects have been delayed and many of Saudi Arabia's smaller contractors have gone out of business due to the increased cost of labour. We believe these issues will begin to dissipate over H214 and once resolved, the clearing of the construction backlog, combined with more recently awarded contracts, such as the USD22.5bn Riyadh Metro project, should see real growth return strongly from 2015, with 10.5% forecasted.

Recent developments:

  • The year 2013 was a bumper year for contract awards in Saudi Arabia. According to the NCB Construction Contracts Index, the value of awarded contracts during 2013 climbed to an all-time high of SAR293.4bn, growing 25% compared with 2012. This was after we anticipated that the value of contract awarded would accelerate in H2 2013. Heavy investments were made in transportation, power and the petrochemicals sectors.

  • Metro Projects Galore: In August 2013, the contracts for construction of Lines 1-6 of the Riyadh Metro project were awarded to three consortia formed of international and local companies. In total, project is expected to cost USD22.5bn and be fully complete in 2019. Construction is hoped to start in 2014, although we anticipate some delays. In July, it was announced that the first...

Table of Contents

BMI Industry View
7
SWOT
9
Industry Forecast
11
Construction And Infrastructure Forecast Scenario
11
Table: Construction And Infrastructure Industry Data (Saudi Arabia 2018-2023)
11
Table: Construction And Infrastructure Industry Data (Saudi Arabia 2018-2023)
12
Project Awards Boost Medium-Term Expectations
16
Transport Infrastructure - Outlook And Overview
17
Table: Riyadh Metro Winning Consortiums
24
Major Projects Table - Transport
27
Table: Major Projects - Transport
27
Energy And Utilities Infrastructure - Outlook And Overview
35
Major Projects Table - Energy And Utilities
42
Table: Major Projects Table - Energy And Utilities
42
Residential/Non-Residential Building - Outlook And Overview
50
Major Projects Table - Residential/Non-Residential Building And Social Infrastructure
57
Table: Major Projects - Construction & Social Infrastructure
57
Industry Risk Reward Ratings
63
Saudi Arabia - Infrastructure Risk/Reward Ratings
63
Rewards
63
Risks
64
Middle East And North Africa - Infrastructure Risk/Reward Ratings
64
Table: MENA Infrastructure Risk / Reward Ratings
69
Market Overview
71
Competitive Landscape
71
Table: Company Financials Table
72
Company Profile
74
Al Rajhi Construction Group
74
Saudi Binladin Group
76
Global Industry Overview
79
Middle East/North Africa Presents Strongest Investment Profile
79
Methodology
85
Industry Forecast Methodology
85
Sector-Specific Methodology
86
Risk/Reward Rating Methodology
90
Sector-Specific Methodology
91
Table: Infrastructure Risk/Reward Rating Indicators
91
Table: Weighting Of Indicators
92

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 multinational and national company developments.

These are broken down into Construction (social, commercial and residential), Transport (roads, railways, ports, airports etc), and Energy & Utilities (powerplants, renewable projects, pipelines and so on).

Industry Trends

Analysis of latest projects across the infrastructure sector (covering the transport, utilities and commercial construction sub-sectors) - including:

Market Overview:Analysis of the key elements driving developments, including evaluations of current capacity and future requirements.

Building Materials Overview

The building materials overview provides industry trend analysis on the global and regional demands for building materials and the impact of this on the emerging and developed markets.

Business Environment Rankings

BMI's Infrastructure Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (construction companies, suppliers and partners) in the regional infrastructure market.

The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data point.

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 & Economic Forecasts

Historic data series (2008-2012) and forecasts to end-2018 for all key industry and economic indicators, supported by explicit assumptions, plus analysis of key risks to the main forecast. Indicators include:

Construction: Industry value (US$bn); contribution to GDP (%); employment (`000); real growth (%).

Infrastructure: Value (US$bn); contribution to construction industry (%); real growth (%) of transport infrastructure (broken down by railways, airports, roads and bridges, ports and harbours) and energy and utilities (broken down by power plants and transmission grids, oil and gas pipelines, and water infrastructure).

Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$).

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 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.

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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