Saudi Arabia gives more attention to upgrading airports in the Kingdom, with a number of airports set for expansion, including Madina, the latest “Saudi Arabia Infrastructure Report Q4 2009” said. “Saudi Arabia stands apart from many of its regional peers as demand for infrastructure and construction projects is fuelled by domestic demand, as opposed to tourism or international demand, and thus is still evident during the global downturn,” the report noted. Further, it said more comprehensive, driver of growth is the government's efforts to sustain much needed infrastructure projects. The report upwardly revised the forecast for 2009 “expecting real growth of 2.86 percent y-o-y in the construction industry, to reach a value of SR78.71 billion ($21.02 billion). Activity has been ongoing in the majority of the major infrastructure projects currently under way, with government support providing the lynchpin for much of this, it added. The transport sector work, the report noted, is continuing on the country's attempts to establish three new railway lines, the North-South, the Haramain high-speed project and the Saudi Landbridge. “Upgrading airports is also a major priority. A number of airports will be expanded, including the Madina (Prince Mohammed Bin Abdul Aziz Airport), for which a $2.4 billion expansion project is in the pipeline, and the King Abdul Aziz Airport, which is undergoing a $11.3 billion expansion,” the report said. Moreover, the utilities sector has seen perhaps the most new activity over the last quarter. The government approved the Madina power and water plant, and the tender for a 2,000MW independent power project (IPP) in Riyadh was launched. A contract was awarded to KEPCO for the Rabigh IWPP. Regionally, the first phase of the GCC power grid was completed, signifying the linking of the power grids of Saudi Arabia, Kuwait, Bahrain and Qatar. The industrial construction sector received a major boost from the awarding of engineering, procurement and construction (EPC) contracts for the Jubail Oil refinery. Aramco and Total awarded $9.6 billion worth of contracts to develop the refinery in 13 packages. The refinery is due to be completed in 2013. Demand for cement and steel has been rising, illustrating construction activity, which has been fuelled by private companies looking for growth markets in the region, where demand fundamentals are strong, the report added. Recent reports have noted that the increasing infrastructure requirements of the country's growing population and stability of the banking sector have helped stimulate the sustained growth of construction activities in Saudi Arabia. Local Saudi banks have disclosed that combined net profits, with the exclusion of one, have increased 2.91 percent to SR6.472 billion during the first half of 2009, highlighting the continued economic growth and providing the much needed liquidity to sustain various construction projects all over the country. The Saudi Arabia construction industry will continue to see positive growth during the second half of 2009, as the economy also continues to expand and provide liquidity. The Q309 Saudi Arabia Infrastructure Report has stated that construction will achieve a 0.05 percent growth, reaching a nominal value of $23.26 billion, while Saudi banks have disclosed combined net profits of 2.91 percent, suggesting that such growth is supportable. “We are witnessing a growing demand for infrastructure development in Saudi Arabia and a strong desire by developers to create greater market value to ensure the long-term sustainability of their projects,” said Fadi Kaddoura, VP sales and marketing for Riyadh Exhibitions Centre, which is organizing the Saudi Build/Stone 2009 exhibitions. “This has, in turn, increased the demand for high-quality stone products and technology, as well as construction and real estate-related services, opening new and exciting opportunities for local and international investors and business organizations to sustain their growth initiatives,” Kaddoura said.“Saudi Arabia has certainly become one of the most attractive construction and real estate destinations in the world.” REC revealed that exhibition space for Saudi Build/Stone is now fully-booked, with more than 650 companies from 38 countries, while there will also be country [pavilions for Australia, Austria, Brazil, China, Finland, France, Germany, Greece, Indonesia, Iran, Italy, Portugal, Saudi Arabia, Turkey, UAE and UK. Saudi Build/Stone 2009 will be held on Oct. 4
