Industry Reports Snapshot

SAUDI PRIVATISATION AND VISION 2030 (Produced in association with Jadwa Investment in July 2018)

  • In 2018, the Council of Economic and Development Affairs (CEDA) in the Kingdom of Saudi Arabia approved the Privatisation Program Delivery Plan with the aim of privatising five government assets by 2020:
    • The Saline Water Conversion Corporation (SWCC) at Ras Al-Khair station;
    • Four flour mills;
    • Saudi sports clubs;
    • Saudi Post services;
    • and a number of transport projects.
  • The move is expected to generate SR35-40 billion (USD9.3–10.7 billion) for the government in non-oil revenues and create up to 12,000 jobs.
  • Some initiatives will not be fully privatised, but will be corporatised instead. Assets including the ports, King Faisal Hospital & Research Center, and some transport projects will be transformed into government or non-profit corporates.
  • One of the key outcomes is to improve and ease access to health services, increasing the private sector’s role in total healthcare spend from 25 to 35% by 2020.
  • The transfer of ownership will be done in several forms, including full or partial assets sale, initial public offering (IPO), management buy-outs, public-private ownerships (PPP) and concessions/outsourcing.
  • By maximising investment capabilities, the Saudi economy could be the main beneficiary with accumulated government proceeds from asset sales set to reach SR450 billion (USD120 billion) by 2026.

SAUDI ARABIA CONSTRUCTION OVERVIEW (Produced by BNC Construction Intelligence in June 2018)

  • In 2018, there were 5,296 active projects in Saudi Arabia and the total estimated value of these projects was USD 819 billion.
  • Saudi Arabia hosts 23% of all active construction projects in the GCC, and in dollar terms, these projects account for 34% of the total estimated value.
  • The largest sector in both number of projects and value is the urban construction sector, with more than 3,700 projects, worth USD386.4 billion.
  • The second largest sector in terms of value is the transport sector, with 500 projects worth USD 156.2 billion.

GCC URBAN CONSTRUCTION 2019 AND BEYOND (Produced by BNC Construction Intelligence in November 2018)

Country Analysis – Saudi Arabia:

  • In Saudi Arabia, the launch of the mega city – Neom – reflects the country’s plans to create new economic opportunities. Another project in Saudi Arabia which merits special mention is ‘Amaala’ – a luxury tourism destination spanning across 3,800 kilometers of an untouched nature reserve in Saudi Arabia's northwestern coast.
  • Saudi Arabia also lifted a 35-year ban on cinemas in 2018. The Kingdom is therefore expected to host 2,600 cinema screens by 2030, providing massive opportunity to all industry stakeholders.
  • The mega-urban development projects like Neom and Amaala tie in with Saudi Vision 2030, which focuses on increasing the role of private sector while diversifying the Kingdom’s economy by developing other sectors such as tourism, healthcare, infrastructure and education.
  • In line with the realisation of the vision, Saudi Arabia presented a USD 295 billion budget for the year 2019 - the largest in Kingdom's history.
  • As per BNC Intelligence, there are over 700 projects worth over USD 24 billion in design and tender stages that will pave the way for growth in Saudi Arabia’s urban construction sector in the coming years.

MAJOR URBAN CONSTRUCTION PROJECTS IN SAUDI ARABIA (Produced by BNC Construction Intelligence in June 2018)

  1. Grand Mosque - Holy Haram Mosque Expansion (estimated project value: USD 21.3 billion; estimated completion: Q1 2019)
  2. King Abdullah Security Compounds - Phase 5 (estimated project value: USD 8 billion; estimated completion: Q4 2018)
  3. The Avenues - Al Malqa Shopping Mall (estimated project value: USD 3.5 billion; estimated completion: Q3 2020)
  4. Mall of Saudi - An Narjis (estimated project value: USD 3.2 billion; estimated completion: Q4 2022)
  5. Expansion of Prophet's Mosque - Phase 1 (estimated project value: USD 2.2 billion; estimated completion: Q3 2020)
  6. New Jeddah Downtown - Phase 1 (estimated project value: USD 2 billion; estimated completion: Q2 2022)
  7. Makkah Residence Development - Phase 2 (estimated project value: USD 1.7 billion; estimated completion: Q4 2019)
  8. 337 Apartment Buildings - Najran Residential Compound (estimated project value: USD 1.4 billion; estimated completion: Q3 2018)
  9. 6,000 Villa Complex - East of Riyadh (estimated project value: USD 1.3 billion; estimated completion: Q4 2020)
  10. Darb Al Haramain Complex (estimated project value: USD 1.1 billion; estimated completion: Q3 2018)