Construction Sector in Saudi Arabia Drives Economic Growth
Date
5/31/2023 3:32:46 AM
(MENAFN) The construction sector in Saudi Arabia holds significant economic importance, contributing over SR255 billion (USD68 billion) and accounting for 6 percent of the Kingdom's gross domestic product (GDP), as stated by Zakria Al-Abdulqadir, the chairman of the Saudi Contractors Authority. Speaking at the Builders of Egypt Forum in Cairo, Al-Abdulqadir highlighted that the construction sector is the second-largest non-oil sector in Saudi Arabia, underscoring its crucial role in the country's economic landscape.
To showcase the vast potential of the construction sector, the Saudi Contractors Authority recently organized the sixth edition of the Future Projects Forum, where approximately 3,000 projects with a total worth of around USD270 billion were showcased. This event served as a platform for connecting industry stakeholders, fostering collaborations, and promoting investment opportunities in Saudi Arabia's construction industry.
Furthermore, Al-Abdulqadir mentioned that the Saudi Contractors Authority currently chairs the Federation of Contractors from Islamic Countries, representing the construction sector of 26 Islamic nations. This position strengthens Saudi Arabia's position as a leader in the construction industry within the Islamic world, enabling knowledge sharing and collaboration among member countries.
The Builders of Egypt Forum in Cairo, hosted by the Egyptian Federation for Construction and Building Contractors in collaboration with the African Federation for Construction Contractors' Association, provided an ideal platform for industry leaders to exchange insights, discuss emerging trends, and explore potential collaborations between Saudi Arabia and Egypt, two major players in the region's construction sector.
A recent report issued by the US-Saudi Business Council shed light on the robust growth of the Saudi Arabian construction sector. The report revealed that contract values in the sector reached SR71.5 million during the fourth quarter of 2022, accounting for 37 percent of the total contracts awarded throughout the year. The deals struck between October and December of that year marked the highest value since the first quarter of 2015 when contract values reached SR88.1 billion.
The construction sector's impressive performance and its consistent contribution to the Kingdom's GDP underscore its crucial role in driving economic growth and development in Saudi Arabia. As the country continues to prioritize infrastructure projects, invest in mega-projects, and promote construction activities, the sector is poised to maintain its position as a key driver of economic prosperity and job creation in the Kingdom.
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