“Construction is the Kingdom’s second largest economic sector after oil,” said Fahd bin Mohammed Al-Hammadi. In 2012, the sector contributed 16.5% of the gross domestic product compared to the private sector growth of 11.5% and GDP growth of 8.6% in current prices, he said.
The construction sector’s total assets are valued at SR200bn (£31bn) while the value of government contracts awarded in 2013 amounted to nearly SR157bn (£25bn). From the start of 2013 to its third quarter, the Finance Ministry sanctioned 1,855 contracts worth SR120.24bn. Al-Hammadi said that government contracts account for 65% of the sector’s activities.
The number of registered contractors in the Kingdom reached about 115,000 by the end of 2013, which is 415 less than the figure of 2010 when it was 280,000.
Fawaz Al-Khodary, deputy chairman of the committee, said that the construction sector was facing problems and emphasised the need for an authority to strengthen the sector. “We also need specialised centres to train workers required for the sector and a research centre to conduct studies on better implementation of projects,” he said.
Saleh Al-Habdan, chairman of the contractors committee at the Riyadh Chamber of Commerce and Industry, said that proposals to resolve the problems facing the sector include setting up a fund to finance contracting companies and sanctioning of more visas to recruit skilled foreign workers.
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