Bill Thompson

New Opportunities Arising in Manufacturing and Services as Saudi Arabia Changes Focus from Oil

Expansion in the Saudi Arabian industry was supported by the government’s initiatives to transform the country from an oil-based economy to one more reliant on manufacturing and services.

 

Boston, MA -- (ReleaseWire) -- 03/03/2014 --The government of Saudi Arabia has a vision for its nation, in that it is attempting to diversify away from oil-based economy and create opportunities elsewhere, such as the construction industry. Among other ideas, it has developed the Saudi Railway Master Plan, projected to cost SAR 63.0 billion (US $17 billion) and to be completed by 2025. The forecast-period outlook for construction in Saudi Arabia remains positive due to population growth, increasing levels of disposable income and urbanization, improving consumer and investor confidence, and enhancements in regional and global economic conditions.

With the rising population, Saudi Arabia is facing a housing shortage, and currently demand is outstripping supply with a current deficit of 730,000, which is expected to grow. The government is promoting various housing projects throughout the country, but Saudi Arabia’s huge housing deficit and growing population will provide lucrative opportunities for residential housing developers over the forecast period (2013-17). Construction in Saudi Arabia, therefore, is bound to increase.

Furthermore, the government passed a mortgage law in July 2012 in order to create better cooperation between banks and borrowers and offer more mortgage loans to citizens. It is hoped that banks will offer loans to a wider variety of the population and thus encourage more potential buyers to purchase new houses.

With the holy cities of Mecca and Medina attracting increasing numbers of religious tourists, large international hotel chains are seizing upon the opportunity to build here. For example, Hilton plans to open 14 new hotels in Saudi Arabia, six of which are to be developed in Mecca, all of which are providing much stimulus for the construction industry in Saudi Arabia.

Construction companies and their suppliers, contractor research organizations, and other companies involved at any stage in the manufacturing, procurement and marketing process can all benefit from the this new report about Saudi Arabia’s construction initiative. It can also provide valuable information to trade body, academia or other industry observers, as well as marketing and advertising agencies.

The information contained in the report includes the following:

- In-depth analysis and market overview of the construction market in Saudi Arabia, including market dynamics and industry analysis for commercial, industrial, institutional and residential construction.
- Market attractiveness and future prospects of the construction market.
- A segmented breakdown of the competitive landscape and industry dynamics within the construction market and the sectors within it.
- An insight into the industry size and growth potential, including company profiles, services and competitors.

You can find more information about this report, including key insights, market drivers, a full abstract, companies included, and a detailed table of contents at www.FastMR.com.

About Fast Market Research
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