Source: Arab News
The total value of ongoing projects in the GCC region currently stands at $2.62 trillion, with the Kingdom accounting for $875 billion.
The Kingdom’s strong construction market is being driven by government spending and high oil prices, according to a recent Global Investment House report.
For 2013, the Kingdom budgeted $219 billion for spending, up by 18.8 percent, year-on-year, from 2012. Out of this, almost $76 billion has been set aside for capital expenditure on investment projects, the report added.
“The Kingdom remains focused on investing in road, railway, power and housing projects. Moreover, the introduction of a new mortgage law is expected to contribute to the growth of the residential sector in the coming quarters,” said Faisal Hasan, CFA and researcher for the report.
These promising industrial data gain significance as Dammam, the Kingdom’s industrial hub, is hosting the 2014 edition of the largest heavy equipment exhibition across the GCC region when the Construction Machinery Show opens its doors to traders and the public, from Feb. 16 to 20, 2014.
Raz Islam, publishing director at CPI Media Group that organizes the event, said: “In 2014, the Construction Machinery Show is teaming up with leading Saudi exhibition organizer, Dhahran International Exhibitions Center (DIEC)”.
The show will run in conjunction with BUILDEX, the 16th Saudi International Building & Construction Exhibition. Both events will attract worldwide industry experts, investors and buyers to the largest trade show in the Eastern Province.
The 2014 event will host over 10,000 sqm of live demonstrations of the various construction and heavy equipment on display, Raz said, adding that Dammam is considered the industrial hub of the Kingdom and a major entry point into the booming market.
It is also the center of the oil and gas industry with nearby Al-Ghawar, which is home to the world’s largest conventional oil field. Much of this wealth is being reinvested into infrastructure and construction, Raz added.