Saudi Arabia to lead MENA construction boom

Saudi Arabia is set to drive growth in regional infrastructure and construction spending over the next 15 years, according to a new report by BofA Merrill Lynch.

Its study published on Tuesday said that the construction sector in the Middle East and North Africa will be a key beneficiary of “reforms to raise productivity of the non-oil sector”.

The MENA infrastructure and construction market is among the world’s most attractive given its sheer size, according to the report.

Forecasting figures predict a total of $4.3trn will be invested in construction projects across the MENA region by 2020, representing an increase of almost 80% from today’s spend.

Philip Southwell, Bank of America Merrill Lynch president and country executive, Middle East and North Africa, said: “Due to many years of underinvestment, we expect Saudi Arabia to take the lead in terms of construction spending in the MENA region as the kingdom responds positively to pressing social needs such as labour, housing and education.”

by CW Staff, Jul 25, 2012