Market Trends of Jeddah Construction Industry
Increase in Commercial Construction is dominating the Market
Saudi Arabia’s second city is undergoing a significant transformation as Vision 2030 giga-projects change the face of many districts, including Marafy and Alarous by Roshn, Sadayem by the National Housing Project, and – controversially – Jeddah Central.
The Jeddah Central, a company owned by the Public Investment Fund, wants to make south Jeddah look entirely different. Six districts are envisaged, including the sports stadium, a man-built canal, an oceanarium and coral farm, a marina, a museum, or an opera house, to be filled with luxury tourism and accommodation.
Two museums are planned – a renovation of the old Bab Al-Bunt Museum by Jeddah port, to be known as the Red Sea Museum and housing works of art, and Jeddah Central Museum, inside an old desalination plant, intended as an industrial heritage site.
Jawharat Jeddah Mall will be one of the modern centers in the city of Jeddah, which aims to establish a diversified center as a new and integrated destination for entertainment and shopping with the latest international brands. Its strategic location, its proximity to the main areas of the city and the proposed land area of 170,746 square meters, a GLA of 87,145 square meters, an entertainment area of 17,475 square meters, and more than 200 stores by Cenomi Centres are distinguished.
Increase of New Port Development Leading the Market
Jeddah Islamic Port handled 465,348 TEU in April 2023, compared to 372,064 TEU in April 2022, according to the data from the Saudi Ports Authority (Mawani). From 214,686 TEU in April last year to 261,543 TEU in 2023, transhipments and restores increased by 21.83%.
In April 2023, total cargo volumes increased by 19.33% to 5,261,883 tonnes, including 128,714 tonnes of general freight, 305,038 tonnes of dry bulk, and 34,109 tonnes of liquid consignments. In April, JIP recorded 324 calls for service, an increase of 13.29% compared to 286 calls for service in the same month last year. Over the same period, passenger traffic increased by 334.77% to 40,947. Automotive throughput rose 72.08% to 54,511 units.
A new shipping service has been launched at the Jeddah Islamic Port in Saudi Arabia, allowing it to reach eight other countries. In partnership with the Red Sea Gateway Terminal Company and France's CMA CGM, the Saudi Ports Authority, known as Mawani, has launched the Turkey Libya Express service. The new Jeddah to Shanghai, Ningbo, and Nansha routes in China also connect with Singapore. The new service, with a capacity of more than 30,000 containers, will employ nine ships, increasing the position of Jeddah Islamic Port as the first reshipment hub in the Red Sea.
In December 2023, In Saudi Arabia, EDECS announced that it had been awarded significant infrastructure and road works for the Jeddah South Container Terminal with DP World Jeddah. In support of the Kingdom's maritime logistics and transport strategy, this project will increase the capacity of the port to handle containers.
The scope of the work undertaken by EdECS is to carry out infrastructure works covering a total area of 100,000 m2, which include earthworks, pavement surfaces, road markings, electrical grids, sewage networks, fire protection networks, and reefer grants.
