Kingdom’s construction projects valued at $875 billion

Updated 27 August 2013
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Kingdom’s construction projects valued at $875 billion

The total value of ongoing projects in the GCC region currently stands at $2.62 trillion, with the Kingdom accounting for $875 billion.
The Kingdom’s strong construction market is being driven by government spending and high oil prices, according to a recent Global Investment House report.
For 2013, the Kingdom budgeted $219 billion for spending, up by 18.8 percent, year-on-year, from 2012. Out of this, almost $76 billion has been set aside for capital expenditure on investment projects, the report added.
“The Kingdom remains focused on investing in road, railway, power and housing projects. Moreover, the introduction of a new mortgage law is expected to contribute to the growth of the residential sector in the coming quarters,” said Faisal Hasan, CFA and researcher for the report.
These promising industrial data gain significance as Dammam, the Kingdom’s industrial hub, is hosting the 2014 edition of the largest heavy equipment exhibition across the GCC region when the Construction Machinery Show opens its doors to traders and the public, from Feb. 16 to 20, 2014.
Raz Islam, publishing director at CPI Media Group that organizes the event, said: “In 2014, the Construction Machinery Show is teaming up with leading Saudi exhibition organizer, Dhahran International Exhibitions Center (DIEC)”.
The show will run in conjunction with BUILDEX, the 16th Saudi International Building & Construction Exhibition. Both events will attract worldwide industry experts, investors and buyers to the largest trade show in the Eastern Province.
The 2014 event will host over 10,000 sqm of live demonstrations of the various construction and heavy equipment on display, Raz said, adding that Dammam is considered the industrial hub of the Kingdom and a major entry point into the booming market.
It is also the center of the oil and gas industry with nearby Al-Ghawar, which is home to the world’s largest conventional oil field. Much of this wealth is being reinvested into infrastructure and construction, Raz added.


‘Huge increase’ in crude prices not expected: IEA executive director

Updated 19 July 2019
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‘Huge increase’ in crude prices not expected: IEA executive director

  • The International Energy Agency is revising its 2019 global oil demand growth forecast down to 1.1 million barrels per day
  • IEA’s Fatih Birol: Serious political tensions could impact market dynamics

NEW DELHI: The International Energy Agency (IEA) doesn’t expect oil prices to rise significantly because demand is slowing and there is a glut in global crude markets, its executive director said on Friday.
“Prices are determined by the markets ... If we see the market today, we see that the demand is slowing down considerably,” said IEA’s Fatih Birol, in public comments made during a two-day energy conference in New Delhi.
The IEA is revising its 2019 global oil demand growth forecast down to 1.1 million barrels per day (bpd) and may cut it again if the global economy and especially China shows further weakness, Birol told Reuters in an interview on Thursday.
Last year, the IEA predicted that 2019 oil demand would grow by 1.5 million bpd. But in June this year it cut the growth forecast to 1.2 million bpd.
“Substantial amount of oil is coming from the United States, about 1.8 million barrels per day, plus oil from Iraq, Brazil and Libya,” Birol said.
Under normal circumstances, he said, he doesn’t expect a “huge increase” in crude oil prices. But Birol warned serious political tensions could yet impact market dynamics.
Crude oil prices rose nearly 2 percent on Friday after a US Navy ship destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for global crude flows.
Referring to India, Birol stressed the country could cut its imports, amid rising oil demand in the country, by increasing domestic local oil and gas production.
Prime Minister Narendra Modi had set a target in 2015 to cut India’s dependence on oil imports to two-thirds of consumption by 2022, and half by 2030. But rising demand and low domestic production have pushed imports to 84 percent of total needs in the last five years, government data shows.
Meanwhile, the IEA doesn’t expect a global push toward environmentally friendly electric vehicles can dent crude demand significantly, Birol said, as the main driver of crude demand globally has been petrochemicals, not cars.
He said the impact of a serious electric vehicle adoption push by the Indian government would not be felt immediately.