The Growth of the Construction Industry

Saudi Arabia is a country full of ambitions and goals, and it is one of the most rapidly growing economies in the Middle East and North Africa. Its goals were set back in 2016, when the Crown Prince Mohammed bin Salman Al Saud unveiled Vision 2030, a groundbreaking strategy designed to transform the nation's economy and reduce its oil dependence. As part of the Kingdom's vision, there are numerous plans that Saudi Arabia aims to achieve. Although these projects are different from one another, they all have one thing in common, and that is they require construction to be completed.

How Vision 2030 is advantageous to the construction industry

Vision 2030 is a long-term plan that was created to make the nation more diverse in sources. Thus the Kingdom will be able to have a sustainable economy, especially in the construction sector, which has seen huge growth due to the expansion of development projects. Hence, Saudi Arabia has been flourishing in construction and infrastructure recently, which has contributed to the nation's overall growth.

Industry growth

According to GlobalData, Saudi Arabia's construction industry will grow by 4.2% between 2022 and 2025. Further, the government has been supporting the sector and developing transportation and energy infrastructure in the last few years to become a global hub for renewable energy and technology within the next decade.

The Kingdom's efforts to boost the construction sector

Additionally, the Kingdom has established a few things that support the construction industry, including:

• Starting construction on the Sakaka Photovoltaic Project
• Securing power purchase agreements for seven new solar projects around the Kingdom
• Allocating funding for transportation infrastructure
• Announcing the launch of the National Infrastructure Fund worth SAR 200 billion

In order to meet its Vision 2030, the Kingdom aims to boost the construction industry. Consequently, the Vision will give the sector a huge boost and will enable it to thrive.

Sources:

Market Research. “Construction in Saudi Arabia - Key Trends and Opportunities to 2025 (Q4 2021)”. MarketResearch.com, (2021). https://bit.ly/3sGn1fW

إندبندنت عربية ووكالات. "السعودية تؤسس صندوقا للبنية التحتية بـ53.3 مليار دولار". إندبندنت عربية ووكالات، (٢٠٢١). https://bit.ly/3hCcNqv

العربية.نت. "٣٠٠ مليار دولار لإنشاء البنية التحتية الجديدة بمشاريع رؤية ٢٠٣٠". العربية.نت، (٢٠٢١). https://bit.ly/3hKJEcJ

حسن الجابر. ""رؤية ٢٠٣٠" تعيد صياغة قطاع البناء والتشييد بالسعودية". العربية.نت، (٢٠١٦). https://bit.ly/3vFFew7