Change may be about to upend the established order of business in Saudi Arabia’s construction sector; with Saudi Oger and the Bin Laden Group falling from prominence, there is a gap in the market for a new ‘golden boy’ of construction in Riyadh.
Today’s insight considers developments in the construction sector, and assesses the prospects for its key players – particularly as dynamics shift from old to new actors. This is the first of two parts, with next week’s analysis looking at power plays in the Kingdom’s construction sector – particularly the dynamic between public and private sector interests.
- Questions continue to surround the identity of those gaining prominence in Saudi’s construction sector. As it stands, the sector is still reeling from the dissolution of its longstanding market duopoly; brought about by the simultaneous collapse of Saudi Oger and the government-led marginalisation of the Bin Laden Group.
- To compound matters, this is coinciding with the rise of multibillion dollar infrastructure projects in accordance with Vision 2030; making the need for established contractors higher than ever.
- But a construction sector in disarray may prompt both foreign and domestic investors to tread lightly, in attempts to assess where access really lies in Saudi.