#Saudi Construction Boom Hands Firms Contracts Worth $250 Billion - Bloomberg

Saudi Construction Boom Hands Firms Contracts Worth $250 Billion - Bloomberg

Saudi Arabia has awarded construction contracts worth $250 billion since 2016, when the kingdom embarked on an ambitious plan to build mega projects and transform its economy.

Property and infrastructure projects valued at $1.25 trillion have been announced across the country including the high-tech new city of Neom, on the kingdom’s west coast, according to property consultant Knight Frank LLP. The government has also unveiled vast new tourism and entertainment projects that aim to attract visitors from around the world, while also encouraging Saudis to spend more domestically.

“Saudi Arabia will become the world’s largest construction site,” said Faisal Durrani, head of Middle East research at Knight Frank. “It is a mammoth task,” he said, and “modern methods of construction like 3D printing, modular construction and off-site manufacture must be embraced.”

The so-called giga projects are key to Saudi Arabia’s plans to transform itself into a top tourism destination and to move its economy away from its hydrocarbon dependency. To help achieve its ambitious targets, the kingdom has pledged to spend hundreds of billions of dollars. It’s also launching a new airline and a fresh airport as part of the 2030 plan led by the country’s de facto ruler Crown Prince Mohammed bin Salman.