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Saudi Arabia’s construction sector will gain momentum in 2023 as a result of ‘Giga projects’ launched within the Gulf Kingdom’s ‘Vision 2030’ economic diversification scheme, according to a local report.
The construction sector in the world’s largest oil exporter swelled by around 4.6 percent in 2022 and is projected to grow by nearly 4.7 percent in 2023, a report by the Saudi financial research firm Jadwa Investment said.
The rebound from around 1.3 percent in 2021 came as a result of a sizeable 78 billion Saudi riyals ($20.8 billion) worth of construction projects being executed in Saudi Arabia during 2022, with various sites around giga-projects also going forward, Jadwa said in its report sent to Zawya Projects.
“For 2023 and beyond, growth in the construction sector will be mainly supported by the progress in giga-projects spearheaded by the Public Investment Fund….all those projects saw varying rates of progress during 2022,” it said.
The report noted key projects include Neom City, Red Sea Development, ROSHN initiative to build houses for citizens, Qidiya and Diriya entertainment and cultural projects in the capital Riyadh.
It said the sector would also benefit from the rise in government capital expenditure to SAR 157 billion ($41.8 billion) in 2023 from SAR 150 billion ($40 billion) in 2022.
“The annual rise in capital expenditure stems from the government’s plan to move forward with spending on mega-projects, growing sectors such as tourism, manufacturing and mining, and other infrastructure projects around the Kingdom.”
(Writing by Nadim Kawach; Editing by Anoop Menon)
