Saudi Arabia’s construction industry value is forecast to contract by 0.7%, reaching SAR 72.57 billion in 2009.
Based on the data set from 2009 to 2013, BMI’s Q2 of 2009 report on Saudi Arabia Infrastructure issued on Friday, estimated that in 2008 the real industry value contracted by 0.2% YoY, putting an end to years of positive growth in the industry.
The report said that “In fact, we do not see positive growth returning until 2013, when it will expand at a rate of 3.7% YoY. The global slowdown has impacted the construction sector in all the Gulf Cooperation Council states and Saudi Arabia will not be immune. Moreover, the impact on Saudi Arabia is exacerbated by high levels of inflation. As such, although there will continue to be activity in the industry, and the nominal value will increase YoY, this will be negated by inflation, pushing growth rates negative.”
The key project in the transport sector so far in 2009 has been the awarding of the first contract for the 444 kilometers Makkah Madina railway.
The civil works contract, worth an estimated SAR 6.8 billion was awarded to a consortium formed of Al-Rajhi Construction Group, France’s Alstom and Chinas Railway Engineering.