Council on Tall Buildings and Urban Habitat or CTBUH recently predicted that the number of 600 meter plus buildings across the world is about to rise in 2016 and Saudi Arabia will lead the pack.
The 1 kilometre tall Jeddah Tower is on its way to completion and when completed, it will edge past Burj Khalifa, the current tallest skyscraper in the world which is right in the heart of Dubai. Surely, Saudi Arabia is going to change perceptions in the foreseeable future and we, as an architectural rendering service provider, are excited like anything about this growth.
Why we are so worked up?
As you might know, we are a 3D architectural rendering company based out of Doha, Qatar, and there’s every reason for us to believe that vertical growth stories of modern cities around the world would definitely translate into collaboration opportunities for us. We are now aggressively seeking collaboration opportunities, meeting construction industry leaders and contractors and planning to contribute to the fairytale growth of the Saudi Arabia construction industry.
How big is construction sector in Saudi?
The construction sector happens to be the third biggest sector of the Saudi Arabia economy and the sector has experienced meteoric growth over the past few years. We found from a Building (dot) co (dot) UK report that the non-residential construction holds about 67% value of the industry’s total value. The construction industry’s Compound Annual Growth Rate between 2003 and 2008 was 10%, though the growth rate has slowed down during more recent years.
We expect the housing sector to grow rapidly in 2016. The Saudi government has planned to increase investments in residential construction sector. At present, 60% of the population is aged below 40 years, which creates immense growth potentials for the residential and non-residential construction sectors, respectively. Saudi Arabia, as the market analysis reports reveal, is quickly becoming the largest infrastructure market in the Middle East. Since we are nestled in Qatar, a neighbouring country sharing excellent bilateral relationship with KSA, we look forward to bagging some really big projects in Saudi Arabia in the latter half of this financial year.
A closed door or a sea of opportunities?
Engineering News Record suggests that no any of the big ten contractors operating in the Gulf region are based out of KSA and international contractors have also been historically outnumbered by home-grown contractors in Saudi Arabia. However, since local contractors in Saudi mainly handle programme delivery and large-scale projects, we look forward to entering symbiotic joint-ventures with those locally based contractors who have a really strong foothold in the Saudi soil.
Saudi to drive growth of the non-oil sector in MENA?
A BofA Merrill Lynch report shows that Saudi Arabia is going to reform the non-oil sector of the entire Middle East and North Africa or MENA region over the next fifteen years and if that happens, this is going to be one big opportunity for us to grab. According to the report, the construction and infrastructure sector has grown at a rate of 177% during 2011-2012 and the market has started to open up for foreign contractors. Also, the recent approval of the mortgage law is bound to supercharge the housing market this 2016.
How can we become instrumental?
It’s quite obvious that projected 200,000 new residential units across the country and especially in big cities like Riyadh and Jeddah cannot be handled by the Saudi based contractors alone. Since we have our forte in 3D architectural rendering and have great deal of collaborating experience, we look to add wings to constriction projects in Saudi that experience huge downtime, errors in planning and execution and loss of important resources. We are here to tell Saudi construction contractors that 3D architectural rendering can literally ‘reshape’ their projects, and the construction industry growth curve as a whole.
Here we come, Saudi Arabia!
To know more, do not hesitate to get in touch with us!