Saudi’s contracting sector’s annual growth stays at 3%
-
Roshan Amiri
- . October 11, 2022
- . Update: October 11, 2022 10:38 pm
According to a senior official, Saudi Arabia’s contracting industry has expanded at around 3 per cent annually and contributes 5.5 per cent to the country’s gross domestic product.
The president of the committee at the Federation of Saudi Chambers, Hamad Al-Hammad, stated that the contracting sector in the Kingdom contains more than 176,000 enterprises and contributes 10.7 per cent to the non-oil GDP during a special meeting of the National Committee of Contractors.
Al-Hammad pointed out that Saudi Arabia proposed more than 540 contracting projects worth more than SR450 billion ($119.70 billion) in 2021, the Saudi Press Agency stated. These projects covered industries like construction, energy, and transportation.
Al-Hammad claimed that domestic and foreign contracting firms now see Saudi Arabia’s project sector as appealing. According to the official, the Kingdom’s contracting industry is among the top five sectors that have a substantial economic impact.
Read | The Saudi film industry is about to take off
995 international contracting companies are now active in the Kingdom, Al-Hammad noted. He asserted that the National Committee for Contractors is making a concerted effort to carry out various activities in order to realise the objectives set forth in Vision 2030.
Al-Hammad stated that the value of development projects in various Kingdom regions over the previous five years exceeded $5 trillion in March at the Future Projects Forum.
“Due to its role in creating cities and infrastructure, the contracting sector is one of the most significant pillars of economic development worldwide. Asharq Al-Awsat was informed by Al-Hammad that this sector had a significant impact on the expansion of the Kingdom’s construction (sector).
Data published earlier in July by asset management company Kamco showed that Saudi Arabia dominated the Gulf Cooperation Council region in terms of projects granted during the second quarter of 2022, totalling $16.5 billion.
The Kamco data also indicated that in the second quarter, the Kingdom was responsible for 77.2% of all contracts awarded in the Gulf region. Additionally, according to MEED, the NEOM project received awards for three of the ten largest projects in the Kingdom.
