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In November 2021, the French construction company Saint-Gobain launched its green home solutions, My Home range, in India. The company opined investing approximately Rs 2,500 crore (~US$335 million) in India between FY2022 and FY2023 in the brownfield and greenfield expansions, mainly in green solutions and digital platforms.

The Indian subsidiary of Saint-Gobain has already opened MyHome stores in Kochi, Mumbai, and Chennai. The stores offer new-age home products such as windows, shower cubicles, mirrors, ceilings, shutters, kitchen furnishings, roofing products, etc. The company even targets to open over 50 MyHome stores by the end of the year in Tier I, Tier-II, and Tier-III cities. Moreover, the company has the target of earning Rs 1,000 crore (~US$130 million) revenue from the home solution business in India.

Eyeing the lucrative opportunity, in November 2021, Saint-Gobain acquired a minority stake in Livspace, one of the leading end-to-end home interior, design, and installation providers in India. Notably, this investment will add up to the company's full product portfolio in the Indian residential market, which accounts for around 80% of the Indian construction market.

Despite the pandemic-led slowdown, residential construction recorded steady growth in India. The pandemic has not largely impacted the house buying budget of the customers. Moreover, with the buyers' changing taste and preference patterns, customers are willing to invest a substantial amount in furnishing and designing interiors. Therefore, considering the vibrant market, Saint-Gobain expanded the business to increase its customer base and the home interiors acquisition to capture a significant market share.

In India, there has a rising demand for green buildings which are digitally-driven, energy-efficient, and aesthetically rich. Consequently, the rise in demand for green buildings propelled the demand for resource-efficient light construction materials such as special glasses that control the sunlight in the room. With the introduction of these products, the company will offer smart and green offices and homes, a minimalistic and aesthetic look coupled with deigned partitions and sleek furniture. The company, which was growing at a CAGR of 17% in the last two decades and grew by 30 times in India, expects the expansion plan to provide a further boost to the company's growth in the coming quarters.

According to ConsTrack360, India is moving towards urbanization, and the home segment market will witness significant growth in the next six to eight quarters. Moreover, strong growth of the home segment of the Indian construction industry is expected to attract global companies to invest in this market.

The rising awareness of environmental sustainability gave growth to the green construction market. Green building is nothing else but a technology to develop an eco-friendly infrastructure. The main purpose of the rising demand for green construction materials is that these materials have lesser negative effects on the environment and human health as opposed to commercial and residential constructions. Apart from this, these buildings use fewer natural resources, less energy, and less water.  

There are various other factors that are providing a boost to the market, such as government policies that help the construction of green buildings, the high resale value of such buildings, and high consumer awareness regarding the benefits of living in such buildings. Due to the high demand for such materials, the key players in the market are constantly innovating with their product line.

CertainTeed, a North American manufacturer and a subsidiary of Saint-Gobain is one of the major players in the green building materials market. The most important type of green building materials is structural, exterior, interior, etc. The company has introduced its felt ceilings offerings with the introduction of new product lines in 2020 with the increasing demand for felt in the interior designing space.  

The new Felt Baffles and Open Cell systems are ideal for lobbies, offices, classrooms, arenas, and commercial applications, which can turn any ceiling into a warm, and visually stunning architectural feature. The felt structures provide high acoustical performance up to NRC 1.10. Moreover, the new product is made from 60% recycled PET content that comes from plastic soft drink bottles, so the felt system is completely recyclable.  

Moreover, CertainTeed LLC, installed water recycling technology worth $4.3 million at its Kansas City insulation plant, which will help to reduce the plant’s usage of water by 227 million gallons per year. The technology will help the company to hold and reuse maximum water that is used on its different product lines. The water that used to travel into the sewer drains, the company reused that water with the help of a technology.

Another innovation in the green materials market is made by the Netherlands-based company Leadex, which uses recycled polyvinyl butyral for waterproofing and sealing products. Every year in Europe, 1.5 billion kilos of PVB waste are generated. The company has set a target of putting waste to better use on all the world’s roofs. With this innovation the company is also partnering with various other construction companies to bring environment friendly products to the market.

Since October 2021, a number of infrastructure projects have been initiated in China. The announcement of major infrastructure projects comes from quickened fiscal stimulus and accelerated issuance of special bonds in the country. The construction boom in China is expected to offer support for fixed asset investment, which has been flat over the last few quarters. This growth in fixed-asset investment will offer a buffer against the rising economic challenges in Q4, resulting in stable GDP growth for the year.  

Major infrastructure projects likely to support the market growth  

In November 2021, Guangxi Zhuang Autonomous Region in South China launched a batch of construction projects, which involves a total investment of US$29.15 billion. These major infrastructure projects cover a wide range of sectors, such as new energy, transportation, basic infrastructure, and logistics. Moreover, Xi'an, capital of Shaanxi Province in Northwest China, inaugurated 100 power grid projects in November 2021. Notably, the power grid projects involve a total investment of around US$10 billion.  

On November 5, 2021, Hubei Province in Central China initiated 805 projects involving a total investment of US$70.8 billion. Moreover, investment in Q4 is also expected to grow as the country has been ramping up fiscal policy by issuing more special bonds to uplift the Chinese economy, facing increasing internal and external pressure over the last few quarters.  

Notably, the fixed-asset installment came to a halt during Q3 2021. During the first three quarters, the fixed-asset investment in the country increased 7.3%, which represents a slowdown of 1.6% compared to the first eight months, according to the data released by the National Bureau of Statistics (NBS).

With the economic growth in the country slowing down in the second half of 2021, investment and uptick in the construction activities during Q4 2021 will help to smooth the average economic growth rate in China for the full year. Notably, the projects that are expected to be finalized by December 2021 will allow construction firms to buy equipment and facilities at the start of 2022. This will be another strategic deployment that is expected to help China transit to 2022 in a better position compared to 2021.

In October 2021, the Ministry of Finance in China said that the issuance of local governments’ special-purpose bonds was ramped up since August 2021. It is projected that the issuance of these special-purpose bonds will be completed by November 2021. Notably, the net bond issuance reached 2.22 trillion yuan in the first three quarters of 2021. According to the Ministry of Finance, this accounts for 61% of the annual quota.  

While the slowdown in factory production has had a negative impact on the economy in October, an increase in consumption because of the recently concluded Double 11 shopping festival and the growing demand for upcoming New Year and Spring Festival holidays are expected to support the economic revival. Notably, China's annual economic growth rate is well ahead of when compared to the rest of the world. ConsTrack360 expects that the Chinese economy and trade will continue to boost the global recovery.

Australia is one of the very few countries which have done well in containing the spread of coronavirus outbreak. However, growth has been impacted due to extended lockdown, leading to weak economic activity in core construction sectors.

In comparison to the rest of the industry, residential construction has been more impacted due to coronavirus outbreak. According to ConsTrack360’s Global Construction Survey Q2 2021, housing sales declined by over 27% in 2020. Overall growth in residential construction is expected to remain subdued in 2021.

To boost the demand and growth of residential construction, the treasury announced the Homebuilder program on June 4, 2020. Under the program, the government will be providing eligible owner-occupiers a grant of AUD 25,000. Even first home buyers are eligible for the grant, which is provided to support the growth of residential construction in Australia.

Boosting the growth of residential construction will also positively impact workers and other related industries in Australia such as designers, architects, and furniture retailers. Moreover, with low-interest rates for loans, it is expected that many Australians will opt for renovations.

Commercial and retail construction sector is estimated to have declined by over 31% in 2020. The value of the commercial activity is expected to decline in 2021, before stabilizing in 2022-23. Increasing government spending will is required to lift the commercial construction activity, especially when private investment is extremely low in Australia.

Construction activity in office, hospitality, and education sectors are all expected to contract significantly. While health and retail have favorable projections, it will not be enough to overcome the slowdown in the commercial sector.

According to the budget, the government is investing heavily in the infrastructure construction sector in Australia. Overall, US$14 billion will be invested in hard infrastructure projects. This includes US$7.5 billion of spending on road and rail projects, US$2 billion for road safety upgrades, and US$1 billion for upgrading local roads and footpaths. Moreover, the government is also offering funding for accelerating the implementation of the 5G network in the country.

The coronavirus outbreak has had a significant impact on the Australian economy and the construction industry. The construction industry in Australia is expected to contract up to 12% in 2020. The outlook for the sector remains positive in 2021. The construction sector is expected to grow steadily in 2021.

According to ConsTrack360's Q2 2021 Global Construction Survey, construction industry in Australia is expected to grow by 6.4% to reach US$169.8 billion in 2021. Despite near-term challenges in certain construction sectors, medium to long term growth story in Australia remains intact. The construction industry in Australia is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 3.8% during 2021-2025. The construction output in the country is expected to reach US$196.9 billion by 2025.

 This report from ConsTrack360 provides data and trend analyses on construction industry in Australia, with over 100 KPIs. This is a data-centric report and it provides trend analyses with over 140+ charts and 110+ tables. It details market size & forecast, emerging trends, market opportunities, and investment risks in over 40 segments in residential, commercial, industrial, institutional, and infrastructure construction sectors.

It provides a comprehensive understanding of construction industry sectors in both value and volume (both by activity and units) terms. The report focuses on combining industry dynamics with macro-economic scenario and changing consumer behavior to offer a 360-degree view of the opportunities and risks.

Scope

• Market Data and Insights: This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2016-2025 in Australia. KPIs covered include the following:

• Market size by value

• Market size by volume of construction

• Number of units

Australia Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Housing type (multi family, single family)

• Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation)

• Price point / income level (luxury, mid-tier, affordable)

• Construction stage (new construction, re-development & maintenance)

 Australia Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Green building by Housing type (multi family, single family)

• Green building by Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation)

• Green building by Price point / income level (luxury, mid-tier, affordable)

Australia Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office (further broken down by Grade A, Grade B, and Grade C)

• Retail (further broken down by Grade A, Grade B, and Grade C)

• Hospitality (further broken down by Grade A, Grade B, and Grade C)

• Restaurant (further broken down by Grade A, Grade B, and Grade C)

• Entertainment

• Sports facility

• Construction stage (new construction, re-development & maintenance)

 Australia Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office green building construction

• Retail green building construction

• Hospitality green building construction

• Restaurant green building construction

• Entertainment green building construction

• Sports facility green building construction

• Other commercial green building construction

Australia Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)

Australia Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare construction

• Educational construction

• Public sector

• construction stage (new construction, re-development & maintenance)

Australia Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare green building construction

• Educational green building construction

 • Australia Infrastructure Construction Sectors: 10- year market size & forecast in value terms by

• Marine and inland water infrastructure

• Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)

• Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)

• Construction stage (new construction, re-development & maintenance)

• Australia Green Infrastructure Construction: 10- year market size & forecast in value terms

Get deep insights and FREE sample report @ https://www.constrack360.com/reportstore/view/Australia-Construction-Industry-Databook-Series-4015

Reasons to Purchase

• In-depth Understanding of Construction Market Dynamics: Understand market opportunity, industry dynamics, key trends and drivers across 40+ market segments and sub-segments of building and infrastructure construction industry in Australia.

• Volume and Value Data: Get detailed understanding of the market both from value and volume (both by activity and units) perspective for historical as well as forecast period

• Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate your strategy; assess market specific key trends, drivers and risks in construction industry.

The German economy declined by 5.3% in 2020. The decline was much lower as compared to other European countries, backed by strong fiscal response to recover from the impact of COVID-19 pandemic.  While operations of several sectors in Germany were impacted due to COVID imposed lockdown, the infrastructure, residential, and utility construction were exempted from lockdown measures. Despite this, the construction activities in Germany declined by over 9.5% in 2020.

In January 2020, the German government announced to spend US$125 billion (€ 86 billion) to improve its railway network in the next decade. Of these, around €62 billion will be spent by the government and the remaining EUR24 billion will be spent by Deutsche Bahn, a German rail company.

A part of the spending will be directed towards renewing 2,000Kms of tracks and 2,000 switching points every year, and renovation of 2,000 railways bridges by 2030. Also, around €7 billion will be used on signal-box technology with Deutsche Bahn planning to increase its fleet of rapid ICE 4 trains from 39 to 137. This could provide lucrative opportunities for foreign investors.

The 2030 Federal Transport Infrastructure Plan (FTIP) which was developed by Federal Ministry of Transport and Digital Infrastructure lays down the development plan of the Federal Government‘s transport infrastructure in Germany. As part of FTIP 2030, some of the key focus areas will include structural maintenance of the existing networks and elimination of bottlenecks on the major transport junctions as well as key transport hubs.

Of the €269.6 billion funding planned, around € 141.6 billion are earmarked for structural maintenance of the existing networks and € 98.3 billion will be spent on upgrading and new construction projects. Majority of the funding (49% or €132.8 billion) will be directed towards roadways, followed by railways (42% or €112.3 billion), and waterways (9% or €24.5 billion).

The execution of the FTIP 2030 will improve passenger rail services as well as rail freight capacity, and reduce congestion on federal trunk roads. It will also offer cost-effective transport opportunities relating to federal waterways.

Under FTIP 2030, around 2,000 project ideas were submitted by various stakeholders including members of parliament, federal states, the Federal Government, railway infrastructure companies, and other for appraisal. Of these, there were around 1,700 federal trunk roads projects, followed by federal railways (400) and federal waterways (50).

In a quest to make the entire network greener, efficient and reliable, the German government is doubling their annual investment in the rail infrastructure. This will support the growth of the infrastructure construction section in Germany.

Moreover, in September 2020, Fehmarnbelt link, the worlds' longest immersed rail and road tunnel between Germany and Denmark received approval. The construction of the Fehmarn belt is worth US$7.8 billion.

In Northern Germany, ten new construction projects for logistics and industrial space have been launched. These infrastructure construction projects are expected to support the construction industry going forward.

Large scale infrastructure development has been one of the topmost priorities of the current government in Indonesia. However, the wide-spread effect of the coronavirus outbreak has weighed heavily on President Joko Widodo's plans. Due to the pandemic, construction of several infrastructure projects were disrupted in the country as the government directed its budget to fund towards the unplanned COVID relief measures.

According to ConsTrack360's Q4 2020 Global Construction Survey, construction industry in Indonesia is expected to grow by 11.0% to reach US$ 67096.3 million in 2021. Despite near-term challenges in certain construction sectors, medium to long term growth story in Indonesia remains intact. The construction industry in Indonesia is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 9.0% during 2021-2025. The construction output in the country is expected to reach US$ 94795.1 million by 2025.

The government spent over 90% of Rp 23.29 trillion raised from sukuk (sharia-compliant bonds) to finance infrastructure projects in 2020. Around Rp 414 trillion of funding is allocated to construction and infrastructure projects as part of the 2021 budget announced by the government. According to National Development Planning Agency (Bappenas) estimates, Indonesia will need US$429.7 billion (or 6.1% of GDP) for infrastructure development during 2020-2024. Further in January 2021, the government announced to issue sukuk of around Rp27.58 trillion (US$1.96 billion) in 2021 to fund the country’s expensive infrastructure projects and accelerate economic growth.

With the renewed interest after the coronavirus induced slowdown and facing its first recession of the century, the Indonesian government is committed to build and develop the infrastructure of the country. Both the central and regional administrations are offering lucrative benefits for investors to invest in infrastructure development projects across Indonesia. Hence, the overall outlook for the infrastructure sector remains positive in 2021.

To prevent Jakarta from flooding, the government is committed to continuing the development of National Capital Integrated Coastal Development (NCICD) in the country. The project requires a total investment of Rp 600 trillion (US$40.22 billion). But the drop in FDI investment in the last few quarters remains a concern for the government. However, in November 2020, Indonesia signed a US$750 million infrastructure and trade deal with the United States. This is expected to provide additional support for the infrastructure sector in the country.

Additionally, the government is developing the coastal barrier in the northern part of West Java, East Java provinces, Central Java, and Jakarta. The coastal barrier development project stretches over 59.1 KM and involves an investment of approximately Rp 641.5 billion.

Funded by the Japanese government - under the official development assistance loan - construction activities are completed at the Patimban seaport, which was inaugurated in December 2020. For the construction of the first phase, Indonesia took a loan of Rp 14.2 trillion (US$ 1 billion) from the Japanese government..

Construction activity of Semarang - Demak toll road, which stretches over 27 KM in Central Java is also expected to support the infrastructure sector in Indonesia. The government is also speeding up the construction activities of Moto GP support facilities. A 17.4 KM long bypass has been constructed for connecting to the Lombok International Airport.

As many 26 local and foreign companies have shown interest in the infrastructure development and operations of the Lombok International Airport. With an estimated project value of Rp 10.3 trillion (US$700 million), the overhaul of the Lombok International Airport will support the growth of the infrastructure construction sector.

In addition to this, the regional administration in Semarang is offering investors a total of five infrastructure projects. These projects are expected to involve an investment of Rp 17.13 trillion (US$1.15 billion).

The administration also promoted other infrastructure projects in the region to investors who are willing to invest in Semarang. For example, the administration is offering a light rail transit project with estimated cost of Rp 14.76 trillion; an underpass construction in Semarang costing Rp 850 billion; and a waste-to-energy plant costing Rp 1.2 trillion.

In recent years, the Egyptian government has placed a strong emphasis on construction and infrastructure as a key driver of financial stability and urban growth. However, the coronavirus outbreak halted the progress of several projects in the country. While the private sector investment declined significantly, the government continued spending on construction activities of roads and bridges. As a result, the construction industry rebounded in the third and fourth quarter of 2020.

After a brief slowdown due to Covid-19, the industry is projected to grow steadily over the forecast period. In the short-term, investment in the construction industry will be largely driven by government spending in the infrastructure sector. Demand for housing construction is also expected to remain stable. Overall, despite the coronavirus pandemic, the medium to long term prospects for the Egyptian construction industry remain strong.

 The residential sector is witnessing significant growth in the country. Increasing urbanization and higher spending power of the consumer are boosting the demand for the residential sector in Egypt. Private companies as well as the government have been investing heavily in the residential market in Egypt.

The El Batal Group in Egypt is planning to launch two new residential projects in 2021. According to the El Batal Group, the Rock Yard residential project in Cairo will be developed with an overall investment of US$95 million. Whereas, the other residential project will be built in the new capital for an undisclosed amount.

 Another B2C Real Estate Company in Egypt is planning to undertake two residential projects in 2021. The Beit Al Watan project will consist of 72 housing units for an investment of US$7.6 million. Whereas, the Sheikh Zayed City residential project will consist of 50 villas for an investment of US$11 million.

The government is also pumping liquidity in the residential construction sector in Egypt. The Egyptian government is building affordable housing and reconstructing slums for the citizens. This is one of the priorities of the current government to re-build and provide affordable housing to the overpopulated neighborhoods in the country.

 While the commercial construction sector got affected due to the coronavirus outbreak, increased spending from both government and private companies has supported the industry. For instance, the El Batal Group’s Rock Vera Plaza commercial project includes the construction of 100 offices and retail units in New Cairo. Moreover, the group has a land bank of another 100 acres for developing future projects in the country.

 The New Urban Community Authority also intends to construct new cities comprising hospitals, shopping centers, schools, and entertainment facilities. Thus, providing support for the commercial construction industry in Egypt.

 The government has continuously funded the development of infrastructure projects in the country – including roads and bridges. Even during the lockdown, the infrastructure construction activities were halted for only two weeks. Several infrastructure-related megaprojects such as the New Administrative Capital, New Alamein, and New Galala - have helped the construction sector recover from the slowdown due to coronavirus outbreak.

In addition to this, the government is planning to upgrade ports, transportation networks, and airports in the courts. It is also planning to build 14 new smart cities nationwide in the coming years.

 According to ConsTrack360's Q4 2020 Global Construction Survey, construction industry in Egypt is expected to grow by 13.2% to reach US$ 34397.1 million in 2021. Despite near-term challenges in certain construction sectors, medium to long term growth story in Egypt remains intact. The construction industry in Egypt is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 6.6% during 2021-2025. The construction output in the country is expected to reach US$ 44341.2 million by 2025.

 This report from ConsTrack360 provides data and trend analyses on construction industry in Egypt, with over 100 KPIs. This is a data-centric report and it provides trend analyses with over 140+ charts and 110+ tables. It details market size & forecast, emerging trends, market opportunities, and investment risks in over 40 segments in residential, commercial, industrial, institutional, and infrastructure construction sectors.

 It provides a comprehensive understanding of construction industry sectors in both value and volume (both by activity and units) terms. The report focuses on combining industry dynamics with macro-economic scenario and changing consumer behavior to offer a 360-degree view of the opportunities and risks.

 Scope

• Market Data and Insights: This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2016-2025 in Egypt. KPIs covered include the following:

• Market size by value

• Market size by volume of construction

• Number of units

 • Egypt Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Housing type (multi family, single family)

• Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation)

• Price point / income level (luxury, mid-tier, affordable)

• Construction stage (new construction, re-development & maintenance)

 • Egypt Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Green building by Housing type (multi family, single family)

• Green building by Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation)

• Green building by Price point / income level (luxury, mid-tier, affordable)

 • Egypt Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office (further broken down by Grade A, Grade B, and Grade C)

• Retail (further broken down by Grade A, Grade B, and Grade C)

• Hospitality (further broken down by Grade A, Grade B, and Grade C)

• Restaurant (further broken down by Grade A, Grade B, and Grade C)

• Entertainment

• Sports facility

• Construction stage (new construction, re-development & maintenance)

• Egypt Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office green building construction

• Retail green building construction

• Hospitality green building construction

• Restaurant green building construction

• Entertainment green building construction

• Sports facility green building construction

• Other commercial green building construction

• Egypt Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)

 • Egypt Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare construction

• Educational construction

• Public sector

• construction stage (new construction, re-development & maintenance)

 • Egypt Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare green building construction

• Educational green building construction

 • Egypt Infrastructure Construction Sectors: 10- year market size & forecast in value terms by

• Marine and inland water infrastructure

• Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)

• Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)

• Construction stage (new construction, re-development & maintenance)

 • Egypt Green Infrastructure Construction: 10- year market size & forecast in value terms

To get detailed insights and FREE sample report please click here @ https://www.constrack360.com/reportstore/view/Egypt-Construction-Industry-Databook-Series-3736

 Reasons to Purchase

• In-depth Understanding of Construction Market Dynamics: Understand market opportunity, industry dynamics, key trends and drivers across 40+ market segments and sub-segments of building and infrastructure construction industry in Egypt.

 • Volume and Value Data: Get detailed understanding of the market both from value and volume (both by activity and units) perspective for historical as well as forecast period

 • Develop Market Specific Strategies: Identify growth segments and target specific opportunities to formulate your strategy; assess market specific key trends, drivers and risks in construction industry.

According to ConsTrack360, the construction industry in the Kingdom of Saudi Arabia is expected to grow 18.9% in 2021. The industry is expected to continue its growth 8.9% in 2022. Increased spending and focus by the government on infrastructure and commercial projects are some key factors likely to support upward trajectory of the industry from the short to mid-term perspective.

The effort of the government to diversify the economy away from oil and to become a global tourist destination is also expected to boost the growth of the commercial construction industry in Saudi Arabia. With the country opening up again to the hospitality and leisure market, there has been an increase in the number of rooms being built in Saudi Arabia. Moreover, as traveling conditions improve across the globe, ConsTrack360 expects growth to return in the hospitality sector. Therefore, it is expected that international hoteliers will invest in the construction and development of new facilities in Saudi Arabia.

Tourism activities are expected to increase in the coming years. As a result, more than 200 projects consisting of 69,000 rooms are currently under development in Saudi Arabia. In November 2020, the crown Prince also announced that the Public Investment Fund (PIF) will inject US$40 million into the Saudi Arabia economy in 2021 and 2022.

The Saudi government also expanded the role of the PIF. The fund is now able to finance the various commercial construction projects in the country. As a result, the PIF is backing the flagship megaprojects of the crown Prince in Saudi Arabia. These include the tourism project at the Red Sea, the entertainment hub at Qiddiya, and the US$500 billion Neom economic zone. This supported by foreign direct investment will boost the growth of the commercial construction industry in the Kingdom.

Under construction mega projects are expected to support the growth

Qiddiya, the capital of entertainment in Saudi Arabia, will include more than 300 educational and recreational facilities along with a Formula One racetrack and a 20,000-seat stadium. The first phase of the US$8 billion project, is expected to open in 2023.

Jabal Omar is another mega project currently under development phase in Saudi Arabia. Spanned over an area of 40 hectares, it is one of the largest construction projects that will cost around US$4.4 billion. The commercial project which is divided into eight phases of construction will include seven-star facilities, several hotels, and dedicated prayer areas for guests arriving in the Kingdom.

Ad Diriyah is another large construction project that is being built on the outskirts of Riyadh. Expected to become one of the major tourist destinations once it comes to life, Al Diriyah will include the construction of several luxury resorts from international hotel brands. The project is expected to cost US$17 billion will also include more than 100 entertainment and dining options.

Giga-projects at Al Widyan, known as the city within the city, will also support the growth of the commercial construction sector in Saudi Arabia. Covering an area of 7 million square meters, these projects involves an overall development of cost of US$2.7 billion. From educational facilities to spaces for retail, leisure, entertainment, and offices – the mega project is aiming to target entrepreneurs in the country.

Additionally, Al Widyan will also be the home to the largest entertainment and shopping destination in the world. The major shopping center which is expected to cost US$5 billion will include recreational facilities, dining options, theme parks, and water parks among other things.

Launched in 2019, the King Salman Park mega construction project will include construction activities for open-air theatre, museums, entertainment games area, hotels, and food and retail area among other things.

Construction activities of these mega projects along with other projects such as Neom and Red Sea projects are expected to boost the commercial construction market in 2021. Investment in these substantial commercial infrastructure projects is further supporting the crown Prince Vision 2030. The construction projects are the foundation on which Saudi Arabia is envisioning the future. Therefore, the outlook for the commercial construction market remains upbeat from the short to mid-term perspective.