The past five years saw the Saudi Arabian construction market increase at a compound annual growth rate (CAGR) of 5.7%, showing that the industry was relatively unaffected by the global economic slowdown.
This increase was partially attributed to the country's oil based economy which represents 80% of the country's revenue and is relatively unaffected by changes in the global economic market. Similarly, 45% of GDP and 90% of export earnings are contributed by the petroleum sector.
Furthermore, the Saudi Arabian construction market is in the process of setting up large projects to expand its infrastructure in order to further develop as a trade and economic power in the future.
The Saudi Government is intent on fuelling the construction sector's growth. According to Saudi Government officials, the Kingdom will spend an estimated $400 billion (SR1.5 trillion) on large infrastructure projects over the next five years.
This rapid ongoing expansion has fuelled great interest in the Saudi Arabian market from manufacturers and suppliers of construction material and machinery from across the world.
The infrastructure construction sector was the largest market in the construction industry during 2006-2010, and represented a 40.6% share of the industry in 2010. While, industrial construction represented the smallest market and accounted for 7.6% of the Saudi Arabian construction industry.
The Saudi Arabian construction sector has great potential for growth, as demand rises for residential and commercial housing and institutional construction. The housing sector, in particular, is likely to grow, as the Saudi population is rising at a rate of 2.5% a year.
For more information on the Saudi Arabian construction market, see the latest research: Saudi Arabian Construction Market Report
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