The construction sector in Saudi Arabia is set to grow by 4 percent and hit a total value of SR 87 billion (or $23.19 billion) in 2011, based on data in a report.
An official of Drake and Scull International PJSC (or DSI) quoted the Saudi Arabia Infrastructure Report covering Q2, stating that the industry’s growth rate will be remain steady until 2015.
Recent data has stated that more than SR 375 billion in economic and social infrastructure developments and projects within the Kingdom are either in the process or in the pipeline.
CEO for DSI, Khaldoun Tabari said that there is a sustainable and healthy demand for infrastructure work in Saudi Arabia. He added that the swelling population in the Kingdom, along with the demographics and economic expansions, is resulting in this demand. Around 66 percent of the Saudi population is under 25 years of age. Tabari was asked about his firm’s participation in Riyadh conference.
He stated that Saudi investors are interested in numerous contracts currently out for tender. Many construction firms in the region are also looking within the Kingdom for opportunities. Tabari also noted that the national budget of SR 580 billion, which records the largest amount of expenditures to date, as well as the homebuilding fund worth SR 290 billion and the most recent mortgage law mark a strategic opportunity for Tabari’s company to search for growth and expansion in the attractive Saudi market.
DSI is a leading firm in the regional market for integrated design, construction and engineering, including the MEP disciplines (mechanical, electrical and plumbing), as well as civil, power and water. The firm is well known for having a concentration of technical expertise and has held a leading position since 1966 in many industries including aviation, commercial, education, healthcare, residential and transportation. DSI has been allied with local development firms like Rayadah (the Public Pension Agency’s investment division) and Aramco.
Tabari’s firm has brought numerous large scale projects to completion within Saudi Arabia since the early 70’s. Riyadh’s iconic KAPSARC (known as the King Abdullah Petroleum Studies & Research Centre) has been awarded to DSI.
Executive director Saleh Muradwejj stated that DSI has put about 1,200 workers on the KAPSARC jobsite, with that total forecasted to swell to about 3,500 within a few months.
The process of design coordination is nearly complete, according to Muradwejj. He noted that work on the basement and foundations has also finished. The initial steel erection is currently underway on the Conference and IT Centers, as is the work on the concrete superstructure at the Research Centre.Paul Holdsworth, Staff Writer, Gulf Jobs Market News