(MENAFN - Arab News) Dealers of heavy machinery reported an increase of 20 percent in demand on heavy machinery and equipment in Makkah, either by buying or leasing, as a result of the growing number of building projects, reported Al-Eqtisadiah newspaper.
The value of these transactions reaches more than SR 3 million.
"Small contractors buy heavy equipment, either to execute projects for large companies, or to lease them at SR 1500 per day," explained Said Al-Saedi, a heavy equipment dealer.
He said that some sell the equipment they buy at a good profit margin, as they acquire them through government and corporate auctions. "After some maintenance and repair, they sell them in a yard sale. Some equipment changes hands for up to SR 1.5 million," he added.
Salman Al-Harbi, vice president of the National Committee for Transportation at the Makkah Chamber of Commerce said, "Increasing prices are a matter of supply and demand, and the role of the committee is to help merchants with ideas and opinions."
He pointed out that yard sales are witnessing a big demand from businesses to buy heavy equipment and machinery for
the completion of projects and infrastructure.