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

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.