Being the largest exporter of oil in the world, the Saudi economy is constantly on the rise. It has the largest economy amongst all GCC countries and is leading investments in the construction sector. The total value of projects planned or underway is estimated to be around USD 700 billion and is projected to reach USD XX billion by 2021 at a CAGR of X%. Greater exposure to trade, attractive investment environment, competition, and diversification are factors affecting the growth of this market.
Huge government investments and an increase in demand for residential constructions are driving the sector. In order to boost the religious tourism in the country, the Saudi Arabia government increased their budget allocations towards transport, infrastructure, hospitality, and retail, resulting in an increase in construction activities in these sectors.
Restraints and Challenges
To gain a presence in the market a significant amount of money and time is needed, as setting up a project in Saudi Arabia is tougher for overseas firms. Investors fear the high-security risk and added cost of insurance. The labor in Saudi Arabia which works in the construction sector is generally from India, Bangladesh, Pakistan and other countries of the Indian subcontinent. They are generally unskilled and take a lot of time to adapt. To prevent slowing down of projects more workers are employed resulting in increased wage bills for companies.
The construction sector shows potential with an increase in private investments providing more opportunities for foreign companies to expand their involvement in the Kingdom. Other gulf countries have already reached stagnation in the construction sector, thereby improving Saudi Arabia’s prospects.
Key Deliverables in the Study
- PESTLE analysis (overview): Macro market factors pertinent to this region.
- Market definition: Main as well as associated/ancillary components constituting the market.
- Key findings of the study: Top headlines about market trends & numbers.
- Market dynamics:
- Drivers: Key factors driving growth in the market.
- Restraints: Most relevant threats and restraints hindering the growth of the market.
- Opportunities: Sectors of high return or quick turnaround on investment.
- Market concentration: Porter’s five forces analysis quantified by a comprehensive list of parameters.
- Chain analysis.
- Market share analysis: Top players in the market (by value and volume)
- Company profiles: Pertinent details about leading, high growth, and innovation-motivated stakeholders; with contact, operations, product/service offerings, financials, strategies, and insights.
1.1 Definition of the Market
1.2 Research Approach and Methodology
1.2.2 Research Design
1.2.3 Study Phases
1.3 Scope of the Report
1.4 Regional Analysis
1.4.1 PESTLE Analysis
1.4.2 Analysis of Ease of Doing Business
2. Market Dynamics
2.4 Market Demand Analysis
2.4.1 Available Products Types (Segmentation)
2.4.2 Identification of Target Sub-segments (Demand Estimation)
2.4.3 Spending Patterns
2.5 Porter's Five Forces Analysis
2.5.1 Bargaining Power of Suppliers
2.5.2 Bargaining Power of Buyers
2.5.3 Threat of New Entrants
2.5.4 Threat of Substitute Products
2.5.5 Degree of Competition
3. Market Segmentation
3.1 Commercial Construction
3.2 Industrial Construction
3.3 Infrastructure Construction
3.4 Institutional Construction
3.5 Residential Construction
4. Overview of Key Components
4.1 Concrete & Masonry Materials
4.1.1 Domestic Production
4.1.2 International Trade
4.2 Steel Frames
4.2.1 Domestic Production
4.2.2 International Trade
4.3 Vertical Transport Devices
4.3.1 Domestic Production
4.3.2 International Trade
4.4.1 Domestic Production
4.4.2 International Trade
5. Policies Related to Market Entry & Operation in Industry
5.1 How to Register a Company (Flowchart)
5.2 Registration Processes
5.2.1 Ministries Involved
5.2.2 Criteria and Conditions
5.2.3 Policies Related to the Industry
6. Competition Analysis
6.1 Local Supply Ecosystem
6.2 Market Share of Major Stakeholders
6.3 Strategies Adopted, Recent Events
7. Supply Chain Analysis