(MENAFNEditorial)
Our view for the Saudi Arabian construction industry to post weaker growth H1 14 due to constraints in the labour sector has played out. We are maintaining our full year 2014 forecasts at 7.3% and see 2015 being a bumper year at 10.5% year-on-year. Although Q114 data was weak we expect activity will pick up during H214 . In line with our view Saudi Arabia plans to adopt measures which are aimed at relieving the financial burden of taking on foreign workers - a key drag on our buoyant outlook for Saudi Arabia's construction industry growth over 2014.
BMI's new Saudi Arabia infrastructure and residential/non-residential building forecasts:
Full Report Details at
- http://www.fastmr.com/prod/872685_saudi_arabia_infrastructure_report_q4_2014.aspx?afid=101
* We forecast that the transport sector will grow in real terms by 7% and 7.7% in 2014 and 2015 respectively. With many of the major projects under development being awarded over the past four years the majority of them will reach completion by 2018. As such we are forecasting a slowdown in the sector - although the rail sector will continue to keep growth elevated with projects such as the Saudi Landbridge and the second and third phases of the Mecca Metro expected to still be under construction post-2020. After averaging 8.8% real growth between 2014 and 2018 from 2019 to 2023 the sector will post slower growth averaging 5.8%.
* Despite high levels of investment we are forecasting that the residential and non-residential sector will struggle over 2014. This is in line with our view that during H114 smaller local players which are undertaking much of the work in the residential and non-residential building sector would be adversely affected by the new Saudi labour laws as opposed to the major players who are building infrastructure projects. However we expect a bounce back in 2015 with 9.9% real growth and then for the sector to average 7.6% up to 2021. Importantly from 2022 onwards we expect the sector to outperform in terms of growth the infrastructure sector. As government investment in...
The Saudi Arabia Infrastructure Report features Business Monitor International (BMI)'s market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects including transportation and logistics by land sea and air; power plants and utilities and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.
BMI's Saudi Arabia Infrastructure Report provides industry professionals and strategists sector analysts investors trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Saudi infrastructure and construction industry.
Key Benefits
* Benchmark BMI's independent infrastructure industry forecasts for Saudi Arabia to test other views - a key input for successful budgetary and planning in the Saudi infrastructure market.
* Target business opportunities and risks in the Saudi infrastructure sector through our reviews of latest industry trends regulatory changes and major deals projects and investments in Saudi Arabia.
* Assess the activities strategy and market position of your competitors partners and clients via our Company Profiles (inc. SWOTs KPIs and latest activity).
Coverage
BMI Industry View
Summary of BMI's key industry forecasts views and trend analysis covering infrastructure and construction regulatory changes major investments and projects and significant multinational and national company developments.
These are broken down into Construction (social commercial and residential) Transport (roads railways ports airports etc) and Energy & Utilities (powerplants renewable projects pipelines and so on).
Industry Trends
Analysis of latest projects across the infrastructure sector (covering the transport utilities and commercial construction sub-sectors) - including:
Market Overview:Analysis of the key elements driving developments including evaluations of current capacity and future requirements.
Building Materials Overview
The building materials overview provides industry trend analysis on the global and regional demands for building materials and the impact of this on the emerging and developed markets.
Business Environment Rankings
BMI's Infrastructure Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (construction companies suppliers and partners) in the regional infrastructure market.
The rankings methodology makes sophisticated use of over 40 industry economic and demographic data point.
Industry SWOT Analysis
Analysis of the major Strengths Weaknesses Opportunities and Threats within the infrastructure and construction sectors and within the broader political economic and business environment.
BMI Industry & Economic Forecasts
Historic data series (2008-2012) and forecasts to end-2018 for all key industry and economic indicators supported by explicit assumptions plus analysis of key risks to the main forecast. Indicators include:
Construction: Industry value (US$bn); contribution to GDP (%); employment (`000); real growth (%).
Infrastructure: Value (US$bn); contribution to construction industry (%); real growth (%) of transport infrastructure (broken down by railways airports roads and bridges ports and harbours) and energy and utilities (broken down by power plants and transmission grids oil and gas pipelines and water infrastructure).
Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$).
Company Profiles
About Fast Market Research
Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts we provide quick and easy access to the best competitive intelligence available. Our unbiased expert staff is always available to help you find the right research to fit your requirements and your budget.
For more information about these or related research reports please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.