MIDDLE EAST (The Middle East countries will see 2.8% to 4.2% GDP growth in the 2nd Q of 2023):
The Saudi Arabia construction sector is predicted to flourish in the next 3 to 5 years after a challenging couple of years. Saudi Arabia is planning to build a number of major capital projects in the next 3 to 5 years. These projects include:
Neom – a vast new high-tech city
The Mukaab – a 400-meter-tall office tower that will be the tallest structure in the Middle East
The King Salman Energy Park
Oxagon – a new floating city in the Red Sea, close to the Suez Canal
The new Riyadh Metro – one of the largest public transportation capital projects in the world
The new Red Sea International Airport
These major capital projects and the ongoing infrastructure, mining, and other Oil & Gas construction projects promise to make Saudi Arabia a very active location for construction in 2023 and beyond. The capital projects are estimated to cost between $750 and $900 billion.
The Vision 2030 initiative is a Saudi Government’s program to reduce Saudi Arabia’s dependence on oil. Look for billions of dollars to be spent on new infrastructure, energy, transportation, hotels, shopping malls, tourist resorts, new housing/villas, and commercial/industrial construction facilities in the next couple of years. Saudi Arabia has more than 70 new hotel/conference center projects in the pipeline in 2023.
All the 2023 future projected Middle East construction growth, particularly in the oil/refinery, energy petrochemical/industrial, and commercial construction is fueled by $80 to $100 a barrel of crude oil.
The rising price & demand for oil could turn out to be a great boost for some Middle East countries that could benefit future Oil & Gas CAPEX construction projects. Construction is projected to steadily increase in Qatar, UAE/Dubai, Bahrain, and Kuwait over the upcoming years, fueled for the most part by oil and gas revenues.