hbbbd`b``3 A,0 d- Saudi Arabia's construction industry is forecast to recover in 2021, growing by 2.9%, after contracting by an estimated 0.5% in 2020. 0062.92.227.B.01. 0000021268 00000 n The handbook also reviews the impacts and threats experienced over the last 12 months on local, regional and international markets. Our full privacy policy can be found here, KSA construction cost benchmarking report Q2 2021, Sustainable and ethical business practice, Graduate programme in the Kingdom of Saudi Arabia, Graduate programme in the United Arab Emirates, I have read and agree to the privacy policy. All data within this application for TPI by Date, TPI by location, Building Costs, and Market Activity are current as at Q4 2022 and are subject to change. 0000044179 00000 n 2022 Chamber of Commerce Amsterdam, the Netherlands. Unprecedented world class entertainment projects are happening in Saudi Arabia 2022, professional fees, statutory fees, legal fees, The market is witnessing more procurement and construction works starting for Giga projects, 0000055921 00000 n Approximately 70% comprise construction sector projects with residential, cultural, leisure, and hospitality as sub-sector leaders, which is the driving force behind the Vision 2030 strategy. Breathe life into old space, or create something brand new to help your people thrive. We have carefully selected articles written by AECOM specialists, that focus on prevailing themes within the construction and property market. in The Kingdom of Saudi Arabia Cost models are an essential tool topredict the cost of construction at the inception stage of projects and to benchmark proposed project construction costs against similar developments. 0000019380 00000 n You can do this here. Construction Costs Benchmarking Kingdom of Saudi Arabia Q4 2022 Market Highlights Saudi Arabia's construction sector in particular, driven by the Kingdom's overall popularity on the world stage, increased in line with the Vision 2030. Construction price inflation to result in higher building costs in 2022 in Saudi Arabia: JLL report JLL has estimated that tender prices rose by an average of 4.5% across Saudi Arabia in 2021, and is anticipating a larger magnitude of increase in 2022 by Angitha Pradeep August 10, 2022 International construction market survey 2022. | Source: Construction Costs. Compass leads construction projects from concept right through to completion with services including. 25-27 September 2023 Hilton Abu Dhabi Yas Island, Constructions Costs Benchmarking Report by Compass. Apartment StandardUnprecedented world class entertainment projects are happening in Saudi Arabia, The market is witnessing more procurement . 0000128018 00000 n Currie & Brown is an asset management and construction consultancy driven by innovation. endstream endobj 591 0 obj <>/Metadata 10 0 R/PageLabels 7 0 R/Pages 9 0 R/StructTreeRoot 12 0 R/Type/Catalog/ViewerPreferences<>>> endobj 592 0 obj >/PageTransformationMatrixList<0[1.0 0.0 0.0 1.0 -420.945 -297.638]>>/PageUIDList<0 57774>>/PageWidthList<0 841.89>>>>>>/Resources<>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageC/ImageI]/XObject<>>>/Rotate 0/StructParents 0/TrimBox[0.0 0.0 841.89 595.276]/Type/Page>> endobj 593 0 obj <> endobj 594 0 obj <> endobj 595 0 obj <> endobj 596 0 obj [/Separation/PANTONE#20315#20C/DeviceCMYK<>] endobj 597 0 obj [/Indexed/DeviceRGB 64 608 0 R] endobj 598 0 obj [/Separation/PANTONE#20Orange#20021#20C 609 0 R<>] endobj 599 0 obj <>stream 0000016169 00000 n 0000057711 00000 n 0000101064 00000 n | Rates exclude: Contingency Inflation beyond Q1 2020 Soft costs such as but not limited to: professional fees, local authority fees, legal fees, sales and marketing costs or pre-opening costs Land costs Finance costs Announced in January this year by Crown Prince Mohammed bin Salman, the ambitious Riyadh Strategy 2030 aims to create 35,000 new jobs for Saudi nationals, pump up to SR70 billion into the national. The report highlights construction activity in the Kingdom of Saudi Arabia in 2022 as well as how the industry is expected to take shape in 2023. 0000018126 00000 n 0000022265 00000 n 0000014557 00000 n T7-0L{}VK_P`\U0&({+h.MW^aOn?5y1CcWk>y[m. Benchmarking is basically the major benchmark components to be analysed.investigating & researching historical Phase 2: Document and compile a list of the costs & performance, a benchmark was major cost / performance drivers, key component master masons datum point or mark on and collect performance and specific historical cost Economic indicators, major projects,. Cost of construction soars as global markets balance booming demand with supply chain disruption. 0000070110 00000 n 0000021920 00000 n Our technical experts and visionaries harness the power of technology to deliver transformative outcomes. %r+C;YPxl$Q3*Q$JYu_iJVF$Th&x6B/!xlP:Ni4# Move into your first office, find a new one with room to grow, or develop a complete location strategy. A rebooted privatization program aimed at injecting much needed foreign direct investments (FDIs) into the Egyptian economy is likely to spur construction activities and accelerate the recovery of Cairos real estate sector in the coming years. 0000098247 00000 n 0000044935 00000 n As of October 2022, KSA holds a 35% market share with a recorded $31 billion worth of contract awards against an overall MENA total of $87 billion as tracked by MEED Projects. 0000002342 00000 n Announcements by Egypt, KSA and UAE of their planned 2022 government spending, the 'race to Net-Zero' commitments and enhancements to the construction sector such as digital transformation are expected to continue to drive growth in the region. These reports will provide you with exclusive research, data and analysis and you can benefit from a special bundle offer if you decide to purchase the three reports. The results shown are indicative only and are to be used as a guide only. 0000028219 00000 n This content is blocked. Residential. Within our detailed economic round-up, we discuss the global and MENA regions current economic and construction performance and present the upcoming challenges and expected future opportunities. 0000130191 00000 n Construction commodities inflation risks due to global events impacting supply chain management. In addition it offers you in depth insight into the supply and demand of cement in Saudi Arabia highlighting its forecast surplus production. The report explains in detail how and why the index has been created, explains the need for such a tool, analyses the factors that have influenced the price movements over the past decade and looks ahead to how these may affect the index in the future. 0000069628 00000 n At Currie & Brown, we recognise such differences and have established specialist teams to ensure that our client solutions ideally balance technical knowledge and capability with sector expertise. M: +44 (0)7815 081926E: [email protected]. The UAE market conditions remained strong in the second quarter of this year and rising concerns about inflation did not prevent positive consumer spending helping the UAE achieve consistent economic growth. What's New & Alerts. Please try again . The tough conditions facing the construction sector persisted throughout 2022. endstream endobj 453 0 obj <>/Filter/FlateDecode/Index[10 369]/Length 35/Size 379/Type/XRef/W[1 1 1]>>stream In 2022, the construction industry's output was supported by the huge pipeline of projects such as Neom, the Red Sea project, Amaala, Qiddiya among others. The KSA construction market is anticipated to grow by 2.9% in 2021. 0000073956 00000 n The Kingdom's pipeline value of unawarded (pre-execution) projects is estimated at $1.1 trillion, which includes projects from the study stage through to the main contractor bid. Dubai welcomed over 1.47 million tourists in January, setting a positive pace of growth for the hospitality industry in 2023. 0000008941 00000 n Breathe life into old space, or create something brand new to help your people thrive. Industrial and Logistics, Raising capital from corporate real estate, Residential Please accept marketing cookies. Some economists are forecasting $125 a barrel of crude oil, which could increase energy/petro/gasoline prices by 50%. The tough conditions facing the construction sector persisted throughout 2022. Data Centres The handbook also reviews the impacts and threats experienced over the last 12 months on local, regional and international markets. Overall, the construction industry in KSA seems to be booming and this trend is expected to continue in the coming years as well. Demand more from your real estate. Go beyond cost and risk mitigation. 0000104054 00000 n It is against this backdrop that MCI has compiled its 3rd quarterly report investigating the key drivers affecting the construction industry. says Emil Rademeyer, General Manager, MEED Cost Indices. 0000109916 00000 n Uncover investment opportunities and capital sources all over the world. KSA market overview - November 2022 16 November 2022 Our latest KSA report summarises the current asset typology benchmarks with a specific focus on the tender price index (TPI). *53z!!|n7Bvvly e?3zu>L=\ hk ?.f0yR\X$6tmJocHLyTZDnXWhoWP8 ^$5as`!7\d,yz}=VHFY$B Fy&FNOf^U_5[q&jHMQ`kVLs%TKyw#AUa(9;m:XkqGaB[ . 379 76 As the global economy continues to face considerable headwinds amidst a year of positive market growth, the risk of a global recession lingers as geopolitics, energy and economic shocks are sustained. The report highlights construction activity in the Kingdom of Saudi Arabia in 2022 as well as how the industry is expected to take shape in 2023. 0000055375 00000 n Physical assets have complex uses and integrated lifecycles. High inflation and energy costs continue to pose challenges to the construction sector what can investors and owners do? As with previous years, we include as a point of reference a synopsis of typical regional procurement routes, forms of contract and building regulation compliance across the Middle East. PIF and its subsidiary companies are shaping the future of Saudi Arabia. 0000037590 00000 n 0000052885 00000 n 0000002536 00000 n 0000051932 00000 n In 2021 the industry is showing signs of recovery with a busy project tender market generated from the Vision 2030 program. 0000001851 00000 n 0000073261 00000 n 0000056366 00000 n These articles aim to provoke thoughts in relation to the growing opportunities within the Middle East on subjects such as repurposing underutilized buildings for food security challenges and inner-city agriculture. 0000096532 00000 n 0000014855 00000 n %PDF-1.4 % 0000052359 00000 n These benchmarks & cost metrics have been gathered over two decades from 100s of Oil & Gas, Power, Industrial, Process Projects, Infrastructure & General Buildings & Facilities. 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Learn how to balance the impact of inflation, Download the International Construction Costs 2023 Report, Our annual review of the construction market. xref endstream endobj 380 0 obj <>/Metadata 8 0 R/PageLabels 5 0 R/PageMode/FullScreen/Pages 7 0 R/StructTreeRoot 10 0 R/Type/Catalog/ViewerPreferences<>>> endobj 381 0 obj <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageC/ImageI]/Shading<>/XObject<>>>/Rotate 0/StructParents 0/TrimBox[0.0 0.0 841.89 595.276]/Type/Page/PieceInfo>/PageTransformationMatrixList<0[1.0 0.0 0.0 1.0 -420.945 -297.638]>>/PageUIDList<0 59625>>/PageWidthList<0 841.89>>>>>>>> endobj 382 0 obj [377 0 R 374 0 R] endobj 383 0 obj <> endobj 384 0 obj <> endobj 385 0 obj <> endobj 386 0 obj <> endobj 387 0 obj <> endobj 388 0 obj [/Lab<>] endobj 389 0 obj [/Indexed/DeviceRGB 64 403 0 R] endobj 390 0 obj [/Separation/PANTONE#20Orange#20021#20C 388 0 R<>] endobj 391 0 obj [/Separation/PANTONE#20425#20C/DeviceCMYK<>] endobj 392 0 obj <>stream