Polywed Constructions and Vision 2030

In line with his Royal Highness the Crown Prince Mohammad Bin Salman Al Saud vision 2030, the Kingdom of Saudi Arabia has implemented a diversification strategy to decrease its dependence on oil, with the launch of various multi-billion-dollar construction projects and megacities all around the kingdom. We at Polywed are proud supporters of the Kingdoms vision 2030 and of the fast paced yet progressive changes that we see around us today in various regions of Saudi Arabia.

Saudi Arabia has more than 4,700 construction projects that are active today, with a combined estimated value of $852.3 billion; around 170 of these projects are worth $1 billion or more As cited by Venture Onsite Middle East (regional leader of knowledge management in construction projects across the Middle East and Africa).

The Kingdom of Saudi Arabia is recommitting to investments in the future with and the kingdom’s construction market is expected to show significant growth and offer lucrative potential due to its Vision 2030, NTP 2020, and ongoing reforms to diversify away from oil dependence. Saudi contracts within the construction sector, infrastructure, and energy sectors are forecasted to increase from US$ 34,151 Mn. In 2017 to US$ 40,068 Mn. in 2018. The building and construction sector is expected to register the highest contractor awards, followed by the energy and infrastructure sectors. An increase in population growth, urbanization, and tourism are expected to drive growth in the building sector, especially in the residential and leisure markets.

The massive budget put down by the government indicates that KSA is expecting significant revenue growth in the years to come. The Vision 2030, NTP 2020, and private sector investment boost, and ongoing reforms are likely to be the growth drivers for KSA’s construction market in 2018 and beyond. According to Riyadh officials, KSA’s economy is entering a post-oil era in which the kingdom’s megacities, which are under construction, will provide the country’s future growth.

According to Oxford Business Group, the government is stepping up investment in KSA’s transport infrastructure, fast-tracking vital projects, and creating new opportunities for service providers. Transport infrastructure gains prominence in the Vision 2030 and National Transformation Programme (NTP) as critical to economic growth. In 2018, the government allocated 6% of its budget towards transport and infrastructure. An example of these projects would be the infamous NEOM city, a 26,500 square kilometers (km) (10,230 square miles) zone that will focus on industries including sustainable construction, energy, water, biotechnology, food, advanced manufacturing, and entertainment. KSA government, the PIF, and local and international investors are expected to invest over half a trillion dollars into it in the coming years. Phase 1 of the project is expected to be completed by 2025.

“Saudi Vision 2030 is driving demand for construction products in the country. We see a rejuvenated interest in the Saudi construction market by local and international players this year,”

Mr. Waugh head of the eighth edition of The Big 5 construction exhibition Saudi Arabia