Saudi construction sector to grow 5.4% in 2012

RIYADH – Saudi Arabia’s construction sector is expected to achieve 5.4 percent growth this year, buoyed by elevated government spending into social and economic infrastructure.

The development of six economic cities is already underway to advance the Kingdom’s diversification and investment plans and ensure a better quality of life for residents.

Business intelligence firm BMI identified power plants and transmission and distribution (T&D) as the Saudi construction industry’s most dynamic subsectors, noting that $80 billion has already been allocated for a 10-year electricity infrastructure plan that will extend to 2018.

Commenting on the prevailing market conditions, Drake & Scull International PJSC (DSI) – a regional market leader in integrated design, engineering and the construction disciplines of civil contracting ,mechanical, electrical and plumbing (MEP), water & power, rail and oil & gas – said the situation opens up numerous opportunities in MEP, civil contracting, and water and power projects.

DSI’s local arm, DSI KSA, has built an impressive engineering history and track record for over 30 years in the Kingdom. DSI KSA has been involved in various high-profile projects across the Kingdom since the 1970s, including the King Abdulla University of Science and Technology, the Intercontinental Hotel and Conference Center, and the King Abdullah Petroleum Studies and Research Center – its biggest contract for 2011. The company aims to achieve continuous growth across all sectors in the Kingdom through its integrated business streams.

“One of the most attractive characteristics of Saudi Arabia’s construction boom is its broad scope. Projects are emerging for all sectors, from government and healthcare to education and hospitality. Given the market dynamics we expect sustained demand for our MEP, civil contracting and water and power expertise. We currently have a backlog worth over SR3.2 billion in the Kingdom which is providing steady revenue streams for the company,” said Saleh Muradweij, Executive Director of Drake and Scull Construction.

DSI KSA is one of the Kingdom’s leading end-to-end integrated engineering solutions providers. It maintains close ties with governmental development entities and key property developers such as Saudi Aramco.

DSI plans to boost its presence in railway and oil and gas developments. Its parent company, UAE-based Drake & Scull International PJSC, offers scalable and comprehensive solutions to clients in the MENA region, Asia and Europe.

The Saudi Gazette, Jun 17 2012