Laura Morgan, Market Intelligence Lead, MEA, JLL joins The 966. Episode #134 to discuss Saudi Arabia’s Booming Construction Sector.
The 966 and host, Richard Wilson welcome to Episode #134 Laura Morgan, Market Intelligence Lead, MEA, JLL to discuss Saudi Arabia’s Booming Construction Sector. In this wide-ranging discussion, Ms. Morgan expands on leading global real estate and investment firm JLL’s Q1 2024 KSA Construction Market Intelligence Report which notes that with $1.5 trillion in the Saudi pipeline of unawarded construction projects, Saudi Arabia accounts for almost 40% of the total MENA pipeline value. Within that pipeline the construction sector represents $950 billion (62% of the total $1.5 trillion), while transportation, infrastructure, and other utilities account for $582 billion (38%).
According to MEED Projects, the thriving KSA construction sector reported the highest value of awarded projects in 2023, reaching USD97 billion compared to USD60 billion in 2022. Aligning with the Kingdom’s Vision 2030 economic diversification and investment goals, this value represents only 6% of the potential pipeline, highlighting substantial opportunities within the sector.
For many more insights, please tune in.
For the video version, please click here.
Sound Bites
- “Saudi Arabia’s progress on numerous Vision 2030 giga projects and infrastructure developments has cemented the kingdom’s position as a leader in construction activity regionally and globally.”
- “Around 5% of the pipeline projects in Saudi Arabia are under a main contract, while the remaining 94-95% are in the design and pre-qualification phases.”
- “Despite challenges such as inflation and geopolitical tensions, Saudi Arabia remains committed to what they’ve announced and what they’ve said they want to achieve by 2030.”
Chapters
00:00 Introduction and Overview of JLL and the Construction Market in Saudi Arabia
03:11 Vision 2030 and Infrastructure Developments Driving Growth
08:11 The Construction Pipeline: Overview and Status of Projects
13:12 Data and Transparency: Understanding Market Trends and Risks
15:57 Building Local Capability: Challenges and Progress in the Contracting Sector
23:14 Commitment to Vision 2030: Overcoming Challenges in Saudi Arabia’s Construction Market
