In January 2023, there were $298 billion in real estate projects under construction. By the end of 2023, ABiQ expects the Saudi real estate construction market to grow by 9% to a total of $324 billion. This total includes completing $18 billion of real estate projects in 2023.
Looking forward at the massive project pipeline in Saudi Arabia, the biggest threat to delivering the vision is securing sufficient resources. Contractors will face challenges in securing materials such as cement, steel, electrical components, speciality materials and labour. This statement holds particularly true for private-sector developers. ABiQ anticipates that government-backed developments will receive preferential treatment, especially when it comes to securing commodities that are in short supply.
Looking at the Middle East cement market, ABiQ predicts that the demand for concrete will increase by 37% in 2023 and 25% by 2024. This increase is significant by any means. In 2018, the Middle East had a cement production capacity of circa 120 million tonnes per annum. Sudden fluctuations in demand can severely disrupt the cement supply chain with dire consequences on the overall cost of construction.
At ABiQ, we focus on supporting the development of the African and Middle Eastern markets. We identify investment opportunities and help businesses make the right choice when it comes to their role in investment, economic development and socioeconomic improvement. ABiQ provides validated data and trusted business intelligence. Our unique forecasting and project tracking tool provide data and analysis to support your business growth strategy across the Middle East and Africa. Contact us for a free demo.