Construction & Engineering

Despite the recent fall in oil prices, Saudi Arabia’s government is pushing ahead with its ambitious development agenda. The outlook is thus bright for the Kingdom’s construction firms, with projects planned under government’s 10th Development Plan including investments worth $258.2bn in real estate; $151.5bn in petrochemicals; and $126.7bn in electricity, gas and water. Indeed, in the short term, costs for contractors and the wider construction industry are improving as a result of the fall in oil prices. Meanwhile, foreign firms are becoming increasingly active in the market thanks to recent measures to help smooth the process of market entry for foreign contractors, an illustration of the government’s commitment to engaging foreign firms in the construction industry.