Saudi Contracting

Executive Summary

The construction sector in the GCC countries is amongst the largest construction sectors in the world, and the Saudi Arabian construction sector is the largest amongst the GCC countries. The Saudi construction industry accounted for a 5% share of the Saudi Arabia GDP as of 2014 compared to 4.8% in 2013. The construction sector showed the highest non-oil GDP growth rate of 6.7% in 2014. In the ninth five year development plan (2010-2014), projects worth USD 385 billion were awarded across all sectors, which was 67% higher than the previous five year plan. Saudi Arabia’s construction sector grew by 8.5% in 2014 and is expected to clock double digit growth in 2015. KSA is expected to have development projects worth more than USD 300 billion by 2020. In addition to growing population, plans to reduce the housing shortage and government’s plan for building alternate energy infrastructure will boost the growth of the construction companies in Saudi Arabia.

This research provides in-depth look into the Saudi Arabian contracting industry. It elaborately discusses sector-wise ongoing projects, analysis of the contracting sector in a SWOT framework, key demand drivers and challenges faced by the industry. Also, included is the financial performance evaluation of some the key listed contracting companies – Abdullah A.M Al-Khodari Sons, Al Babtain Group, Mohammad Al Mojil Group (MMG), Arriyadh Development Co, Saudi Real Estate Company and Saudi Binladin Group.