Construction boom boosts business opportunities in KSA
Saudi Arabian construction industry is poised to achieve a 4% growth to reach a value of SAR 87 billion this year, where the sector’s annual growth is expected to be maintained between 2011 and 2015 with the same rate, according to the Saudi Arabia Infrastructure Report for the second quarter of 2011.
Recent reports recorded over SAR 375 billion of social and economic infrastructure projects under way and in the pipeline in Saudi Arabia, which illustrates high levels of current activity and future growth potential for this sector.
Commenting on his company’s participation in The Euromoney Conference in Riyadh, Khaldoun Tabari, CEO, Drake & Scull International PJSC (DSI), said, “Saudi Arabia has maintained a strong and sustainable demand for infrastructure projects, which is due to the growing Saudi national population with strong demographics, as 66% of the population is under 25, in addition to the expanding economy”.
“The significant number of contracts in the tendering phase has also peaked investor interest in Saudi Arabia, with many regional construction companies focusing on the country for opportunities. Additionally, the SAR 580 billion national budget, which is the largest state expenditure to date, the SR 290 billion homebuilding fund and the latest mortgage law represent a strategic incentive for our company to further expand and seek growth in the kingdom’s attractive market”.
Drake & Scull International (DSI) has completed several major projects since the early 1970’s, including the Intercontinental Hotel and Conference Centre in Riyadh, Tabarjal Hospital, Mina Hospital and Health College, and King Abdulla University of Science and Technology (KAUST).
In 2010, DSI managed to secure a series of consecutive project wins in Saudi for a total value of AED 1.2 billion in the mechanical, electrical and plumbing sector, civil and water and power sector among which Al Jawharah Tower in Jeddah and the iconic Information Technology and Communications Centre (ITCC) in Riyadh stand prominent . The company inaugurated 2011 in the kingdom by recently securing the iconic King Abdullah Petroleum Studies and Research Centre (KAPSARC) project in Riyadh for a total value of SR 2 billion.
Earlier this month, the company reported revenues of AED 645 million in Q1 a 67% percent year-over-year revenue growth. Saudi Arabia remains the biggest market for DSI and constitutes 50 % percent of its AED 7.5 billion backlog as of March 31st 2011.
