Saudi Arabia currently holds the greatest potential for the construction sector within the GCC, with more than 5,000 capital projects worth well over $1.6 trillion in the pre-execution stage.
According to leading cost and project management consultancy, Linesight, which has a GCC pipeline worth over $10 billion, activity in the construction sector throughout the GCC countries will begin to recover steadily from the beginning of 2020, after a challenging period of subdued performance.
Long-term positive factors such as economic diversification, social reform, especially in Saudi Arabia, and general demographic demand, combined with renewed government ambition, will be the key drivers.
That includes over 150 development projects worth $3.27 billion, for Tabuk region that were announced by Custodian of the Two Holy Mosques King Salman Bin Abdulaziz in November last year. The King also launched more than 600 projects in Qassim, 400km northwest of Riyadh, worth $4.36 billion and around another 200 new projects in Hail, also in the northwest of the Kingdom, valued at $1.14 billion.
However, the centrepiece of its ambitious Vision 2030 initiative is the $500 billion, 26,500 square km, Neom project, situated along 468 km of Red Sea coast close to Egypt and Jordan. The first phase of Neom is due for completion in 2025.
Linesight’s portfolio includes the $4bn (SAR15bn) Thakher City in Makkah, and the Al Faisaliah District redevelopment project in Riyadh, which is aimed at upgrading the Al Khozama retail, hospitality and commercial complex.