Arab Today, arab today saudi building sector rises 156
Last Updated : GMT 08:01:15
Arab Today, arab today
Arab Today, arab today

Saudi building sector rises 156%

Arab Today, arab today

Arab Today, arab today Saudi building sector rises 156%

Dubai - Arabstoday

Construction contracts awarded in Saudi Arabia during the first half of 2011 jumped 156 per cent to 84.2 billion riyals (Dh82.43 billion), up from 33 billion riyals in the corresponding period last year, according to a report. Saudi Arabia\'s Construction Contracts Index (CCI) jumped to 205.3 points at the end of the first half of 2011, which is in stark contrast to the 80.36 points recorded in the corresponding period of 2010. \"This reflects the robustness of the construction industry over the past six months in particular as the initiatives from the annual budget and King Abdullah\'s royal decrees are currently being implemented,\" Saeed A. Al Shaikh, group chief economist of National Commercial Bank, said. The 34.5 billion riyals in awarded contracts in the second quarter of 2011 represents a 43 per cent increase over the second quarter of 2010 when the value of awarded deals was 24.2 billion riyals, the report shows. Article continues below Recent reports indicate that the Middle East\'s largest economy is set to spend close to $100 billion (Dh367.19 billion) in boosting energy production over the next decade. This includes the construction of new power plants, expansion of existing ones and improving distribution systems across the country. Affordability factor King Abdullah Bin Abdul Aziz\'s recent pledge to spend 30 per cent of the kingdom\'s annual economic output (approximately $130 billion) on mass housing, job creation and training, unemployment benefits and a raft of other social and economic measures has been welcomed with great enthusiasm. \"However, as the supply and demand gap continues to widen in the housing sector, affordability remains the key deterrent for home ownership among Saudi nationals. Saudi Arabia has the largest real estate market in the GCC, but the least developed mortgage market and this has resulted in a shortage of owner-occupied residential housing, particularly at the lower end of the income scale,\" Mike Williams, senior director, Middle East research and consultancy manager at CB Richard Ellis, said. With a rapidly growing population and an unemployment rate estimated at over 10 per cent among nationals, job creation, particularly in the private sector, is becoming an increasingly pressing issue for the government, he says. At present only one in ten private sector jobs is held by a Saudi national. \"The government\'s focus to fulfil its citizens\' demands for improved infrastructure capabilities played a significant role as more than 31 per cent of the value of awarded contracts during the second quarter was directed towards infrastructure related sectors. However, the residential real estate and power sectors garnered the highest percentage of the value of awarded contracts, accounting for 26 per cent and 23 per cent, respectively,\" Albara\'a Al Wazir, senior economist at the National Commercial Bank, said. Growth areas In terms of geographical break-down, Riyadh accounted for the highest portion of awarded contracts by value, with a 26 per cent share. The Eastern Province accounted for 25 per cent of the value of awarded contracts with a big chunk of industrial, water and urban development contracts awarded. The Makkah and Madinah regions accounted for 16 per cent and 15 per cent, respectively. The main contract awards in those regions were residential real estate projects in Jeddah and a power contract in Yanbu. It is estimated that Saudi Arabia\'s vast appetite for energy will grow at 8 per cent annually from the current peak levels of 44,000 MW to triple the current offtake by 2032 at 121,000 MW. The plans include a thermal plant at the port of Yanbu on the Red Sea, with a capacity of 850 MW and a cost of $1.5 billion, and the Ras Al Zor point in the eastern region which will be the site of the world\'s largest power and desalination project with an estimated cost of about $2.4 billion. Completion of the project is expected by the end of 2013 when the plant will have a production capacity of 2,800 MW. \"This frenzied pace is expected to continue through sescond-half 2011 as there are numerous high-value projects that are in the bidding phases and are expected to be awarded in thir-quarter 2011. One such bid that is expected to be awarded is Phase 2 of the Haramain high-speed railway project at an estimated value of 30 billion riyals,\" said Al Shaikh.  

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today saudi building sector rises 156 Arab Today, arab today saudi building sector rises 156

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Kalam Nawaem made a difference in social issues

GMT 06:43 2017 Tuesday ,28 February

Kalam Nawaem made a difference in social issues

GMT 05:34 2017 Monday ,27 February

Brexit sows seeds of doubt for British farmers

GMT 06:38 2017 Sunday ,26 February

US rig count increases

GMT 06:01 2017 Sunday ,26 February

BRIC funds see inflows amid emerging equity boom

GMT 05:43 2017 Sunday ,26 February

Al-Gergawi quits Dubai Holding to focus on govt role

GMT 05:14 2017 Sunday ,26 February

Oil prices to average $50-$70 through 2022

GMT 14:44 2017 Saturday ,25 February

China overtakes US as Germany’s top trade partner

GMT 05:53 2017 Saturday ,25 February

Global sovereign debt to hit new all-time high
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Aspires present the story of Egypt’s first president

GMT 06:18 2017 Sunday ,26 February

Aspires present the story of Egypt’s first president
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 06:28 2017 Tuesday ,28 February

Dumbphones survive rise of the smartphone

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday