Industrial Projects And Housing Lead Positive Growth Story
BMI View: We expect that industrial construction projects along with sizable investment in affordable housing will drive real growth within the Saudi residential and non-residential sector over our 10-year forecast period. Our Infrastructure Key Projects Database show that efforts to expand the non-oil economy is yielding billions of dollars of investments, and our new forecasts for the residential and non-residential construction see real growth averaging 7.6% up to 2023.
We hold a very positive outlook for the residential and non-residential building sector over our 10-year forecast period; our new forecasts are based on existing and anticipated large-scale government investment in a broad base of residential and non-residential projects, focussed on developing new economic cities to broaden Saudi Arabia's non-oil economy. Also, we believe the Kingdom will continue ploughing funds into housing and social infrastructure over the next year as the government remains keen to keep the population placated in the wake of the troubles in the wider Arab world. That said, we note the risk of tightening budgetary pressures on the horizon, which may have seen the major investment spends in the social infrastructure sector already pass.
Widening The Economic Base
|Industrial Base Growing|
|Industrial Projects Under Development By Sector, % of Total Value (USD110bn)|