Saudi's new construction contracts to rise 15.4% to $60bn in 2010

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SAUDI CONSTRUCTION: Contracts awarded to main contractors expected to hit $60bn by 2010. (Getty Images)

As the largest construction market in the Gulf, the value of new construction contracts awarded to main contractors in Saudi Arabia is expected to increase by 15.4%, reaching $60bn in 2010 compared to $52bn in 2008, according to Naseba, an events management firm.

The firm will host an executive congress titled 'Kingdom Expansion Congress 2009' from 11th-13th May 2009 in Riyadh.
 
The three-day congress aims to bring together key government bodies, ministries, urban planning and development authorities, leading infrastructure developers, construction companies, architectural firms, building material manufacturers and suppliers and technology providers from all over the world.

The conference is considered of high importance to the development and investment in Saudi Arabia's real estate sector which is expected to remain strong despite project delays and cancellation, according to recent reports from Ventures Middle East.

During the congress, industry-renowned experts will discuss the latest trends and issues in the industry, mainly focusing on sustainable cities, public-private partnerships discussions, smart cities and city development strategies, green buildings and innovative build IT solutions, the importance of maintenance and operations and the need for facilities management in the region.

The real estate and construction development is mainly driven by the strong local population growth which is expected to double in the next 20 years, the demographic and structural shifts in the economy, the increasing transparency of laws and regulations attracting foreign investment and the new mortgage law as well as the affluent commercial sector, the media release notes. As a result, six mega economic cities are currently being developed and are expected to be home to 4 to 5 million residents by 2020, it adds.

Prachi Dawar, Event Project Director, Naseba said, "'Kingdom Expansion Congress 2009' is an opportunity for all industry players to enter the new booming Saudi market, understand its needs, requirements and establish themselves in the country."

Speakers at the conference include: Abdullah Al Mogabel, Deputy Minister for Roads, Ministry of Transport, Saudi Arabia; Dr Mustafa Madbouli, Chairman - General Organisation of physical planning, Ministry of Housing, Utilities and Urban Development, Egypt; Abdul Aziz Al Duailej, CEO, Al Oula Development; Essam Al Kalthoum, CEO, Al Shamiyah Urban Development Co. and Mohammed S. Al Khalil, CEO, Akwaan Properties, to name a few.

With the Saudi market currently valued at over $1 trillion worth of underway and planned projects, the real estate activity is estimated to increase at an average annual rate of 5.8%, with its contribution to GDP increasing from 6.8% in 2004 to 7.2% in 2009.

The contribution of the building and construction sector to the GDP is estimated to increase at an average annual rate of 6.7%, reaching 7.3% by the end of 2009, as compared to 6.6% in 2004, concluded the Saudi Ministry of Economy in the Eighth National Development Plan (2005-2009), Naseba said.

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