São Paulo – The building industry in Saudi Arabia should grow 0.05% in real terms, to reach a nominal value of 87.23 billion rail (US$ 23.3 billion), according to the most recent Saudi Arabia Infrastructure Report. According to Saudi Gazette, in Jeddah, one of the factors for the constant development of infrastructure works is the growing population.
The transportation sector is among the main focuses for works and there are plans for development of a regional railway network. The main contract in the area was signed in February 2009 for the construction of a high-speed railway connecting Mecca to Medina, crossing Jeddah, the main economic hub in the country. The tender was won by the Saudi Al-Rajhi Construction Group (RGC), the French Alstom and the Chinese Railway Engineering (RE).
Another project, scheduled for inauguration in 2010, is the North-South railway, to connect the northern mineral belt with Riyadh and the industrial and port city of Jubail.
In the area of energy, there is good and bad news, according to Saudi Gazette. In April it was announced that the Ras Al Zour IWWP (independent water and power provider) project, whose tender had been won by Sumitomo Corporation, from Japan, was taken back by the government of the Arab country and should be tendered again.
The measure was taken because Malakoff International, from Malaysia, the Sumitomo partner, decided to abandon the project in February this year. The Japanese company did not manage to find another partner, causing cancellation of the tender.
However, in March it was announced that the ACWA Power International, a company established to manage desalination and energy production projects worldwide, secured US$ 2 billion in financing for Rabigh Power Plant. The EPC contract, evaluated at US$ 1.65 billion, was won by the Chinese Dongfang Electric and Sepco-III.
It is not just in the area of infrastructure that the country is advancing. In the real estate area, the construction of houses is also expanding. According to the organisation, Saudi Build, a fair in the building sector to take place in Riyadh, in October, around US$ 6 billion is being invested in housing projects, plus another US$ 2 billion in schools and universities.
The project for six new economic cities, the theme of several articles by ANBA this year, has an initial cost estimated at US$ 87.8 billion, and the value should grow until they are completely ready, in 2020.
According to the Saudi Arabian General Investment Authority (Sagia), when these enterprises are fully operational, they should contribute with US$ 150 billion for the country’s Gross Domestic Product (GDP), creating 1.5 million jobs and housing 2.5 million people.
Opportunities
To take Brazilian companies to this market, not only in Saudi Arabia, but also the Gulf and other Arab countries, the Arab Brazilian Chamber of Commerce should participate in two fairs in the sector, up to the end of the year.
The first is Saudi Build, to take place from October 4th to 7th, in Riad, also to include a Brazilian pavilion organized by Conceito Brazil, a company from São Paulo that represents the event organizers, Riyadh Exhibitions Company. Participation has already been confirmed by WK Comercial Exportadora, in the wood sector, and Sudati, in the plywood sector, Cejatel, of ceramics, the Non-Ferrous Metal Artefact Union of the State of São Paulo (Siamfesp), Cláudio Vogel, in the tile sector, the embassy of Brazil and the Arab Brazilian Chamber.
The second is the Big 5 Show, the largest fair in the building sector in the Middle East, to take place from 23rd to the 26th of November in Dubai, in United Arab Emirates. In this case, the organizers of the Brazilian pavilion, as has been the case for several years, is by the Arab Brazilian Chamber. Participation has already been confirmed by Hidroservice, in water treatment, Itagres, of ceramics, and Platform, in the wood sector.
Further information about fairs
Saudi Build
Conceito Brazil
Tel.: (+55 11) 3527-5000
E-mail: pportugal@conceitobrazil.com.br
Site: www.conceitobrazil.com.br
Big 5 Show
Marketing Department at the Arab Brazilian Chamber
Tel.: (+55 11) 3147-4071 / 72 / 73 / 92
E-mail: marketing@ccab.org.br
Site: www.ccab.org.br
*Translated by Mark Ament
