São Paulo – New contracts in the building sector, for the value of US$ 85 billion, were established in Saudi Arabia in 2010, according to studies made by consultancy company Ventures Middle East for organisation of the Big 5 Show, a fair in the sector that should have an edition in Jeddah this year.
Of this total, according to the report disclosed last weekend, US$ 33 billion are for contracts signed in the area of civil construction, i.e. buildings. The figures include the period from January to mid December.
This area was the one that had the greatest turnover in the building sector in 2010, followed by industrial enterprises, oil and gas, energy and water, infrastructure as a whole, piping and offshore works.
The study shows that the Saudi building sector is currently the centre of attention in the region. That is because the domestic market sustains the demand for works, be they infrastructure or housing. The local population is around 26 million people and grows fast.
Apart from that, great investment in public works is part of the government’s strategy to boost the economy and overcome the effects of the international financial crisis.
It is worth recalling that Saudi Arabia is the world’s main producer and exporter of oil and the only Arab nation included in the G-20, the group of 20 main economies in the world.
In the other countries of the Gulf Cooperation Council (GCC), according to the report, the demand for works is boosted mainly by tourism and expatriate workers. Apart from Saudi Arabia, the bloc also includes Bahrain, Qatar, the United Arab Emirates, Kuwait and Oman.
The Saudi building sector is the second in the region, losing only to that of the Emirates. The Big 5 show in Jeddah should take place from November 27th to March 2nd. The original edition of the fair, in Dubai, takes place at the end of the year.
*Translated by Mark Ament
