KSA construction trade to grow 35%

Updated 06 April 2014
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KSA construction trade to grow 35%

The Saudi construction market is set to scale greater heights with a projected growth rate of 35 percent over the next three years.
With the total value of projects planned currently estimated at $ 732 billion, the sector is poised to become the fastest-growing in the Kingdom’s economy by 2015.
Construction projects worth a total of $42 billion were awarded in 2013 in the Kingdom, compared with $17 billion in 2012, making 2013 the strongest year for the country’s construction industry in recent times.
Saudi Arabia’s gross domestic product grew 3.19 percent in the third quarter of 2013 in current prices compared with a 2.7 percent rise in the previous three months, according to the Central Department of Statistics. The GDP value rose from SR675.19 billion in the third quarter of 2012 to SR696.7 billion.
During the same period the GDP rose by 3.05 percent in real prices, the department said.
In the public sector, the GDP fell by 18.52 percent to SR102.6 billion in current prices, compared to the same period in 2012. However, it showed a growth of 2.43 percent in real prices.
The private sector, on the other hand, achieved a growth of 6.53 percent in current prices in the third quarter of 2013 to reach SR244.08 billion compared to the figure of previous year, SR229.13 billion.
The construction and building sector and downstream industries showed big growth at the rate of 9.76 percent and 7.87 percent respectively. In stable prices, the sector’s growth rose by 3.31 percent.
In the Kingdom, the value of the estimated planned projects would be $ 732 million, according to an official from the Riyadh International Convention and Exhibition Center which has been organizing the the Saudibuild show annually for the past consecutive 25 years.
Saudi Arabia holds around 39 percent of the construction market in the GCC region. The major project allocations include, $ 116 for King Abdullah Economic City, $ 40 billion for Sudair Economic City, $ 66 billion for the proposed construction of 500,000 new housing units, $ 16.5 billion to revamp the transport system in the holy city of Makkah, construction of 53,000 rooms in hotels and the proposed $ 7.2 billion expansion for the King Abdulaziz International Airport .
“Driven by increasing private and public investments in 2013, we are witnessing a definitive surge in construction projects in Saudi Arabia — particularly in the fields of social and transport infrastructure,” Zeyad Al-Rukban, deputy general manager, Riyadh Exhibitions Company, said.
He said the huge participation at the last Saudibuild show held in November, demonstrated the vibrancy of the construction industry of the Kingdom.
The Kingdom hosted 850 companies from 35 countries at the Saudi Build 2013, held in Riyadh from Nov. 4 to 7.
“It attracted companies from across the globe, provided a meeting place for industry professionals, and offered a comprehensive set of solutions covering all aspects of the construction industry,” Al-Rukban said.


T-Mobile, Sprint see Huawei shun clinching US deal -sources

Updated 2 min 18 sec ago
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T-Mobile, Sprint see Huawei shun clinching US deal -sources

WASHINGTON/NEW YORK: T-Mobile US Inc. and Sprint Corp. believe their foreign owners’ offer to stop using Huawei Technologies equipment will help with the United States clearing their $26 billion merger deal, sources said, underscoring the lengths to which Washington has gone to shut out the Chinese company.
Like all major US wireless carriers, T-Mobile and Sprint do not use Huawei equipment, but their majority owners, Germany’s Deutsche Telekom AG and Japan’s SoftBank Group Ltd, respectively, use some Huawei gear in overseas markets.
People familiar with the deal between T-Mobile and Sprint, the third and fourth largest US wireless carriers, said US government officials had been pressuring Deutsche Telekom to stop using Huawei equipment, and the companies believed they had to comply before a US national security panel would let them move forward on their deal.
Both Deutsche Telekom and Softbank were reported this week to be seeking to replace the world’s biggest network equipment maker as vendor. Now, T-Mobile and Sprint expect the US panel, called Committee on Foreign Investment in the United States (CFIUS), to approve their deal as early as next week, the sources said.
The sources, however, cautioned that negotiations between the two companies and the US government have not been finalized yet, and any deal could still fall through. They asked not to be identified because the matter is confidential.
Sprint, T-Mobile, Deutsche Telekom, SoftBank and CFIUS declined to comment. Huawei did not respond to a request for comment.
The US government and its allies have stepped up pressure on Huawei over concerns that the company is effectively controlled by the Chinese state and its network equipment may contain “back doors” that could enable cyber espionage, something which Huawei denies. Several telecom operators in Europe and Australia have said they will exclude the Chinese firm from their fifth-generation (5G) mobile networks.
The pressure on Huawei has already heightened tensions between the United States and China over trade. Earlier this month Meng Wanzhou, Huawei’s chief financial officer and daughter of its billionaire founder, was arrested in Canada on a US extradition request. US prosecutors have accused her of misleading multinational banks about Huawei’s control of a company operating in Iran. China has asked for her release.
In an interview with Reuters earlier this week, US President Donald Trump drew a connection between the Huawei CFO extradition case and his administration’s trade row with China, saying he would be willing to intervene if it helped resolve the dispute or serve US national security interests.
The United States has been stepping up its targeting this year of both Huawei and ZTE, China’s second-largest maker of telecommunications equipment. Last March, Trump blocked chip maker Broadcom Ltd’s attempted $120 billion takeover of US peer Qualcomm Inc. over concerns the deal could boost Huawei’s competitive position.
ZTE was crippled in April when the United States banned American firms from selling it parts, saying the company broke an agreement to discipline executives who had conspired to evade US sanctions on Iran and North Korea.
The ban, which became a source of friction in Sino-US trade talks, was lifted in July after ZTE paid $1.4 billion in penalties, allowing the firm to resume business.
SoftBank plans to replace 4G network equipment from Huawei with hardware from Nokia and Ericsson, Nikkei reported on Thursday, without citing sources.
Deutsche Telekom, Europe’s largest telecoms company, on Friday said it was reviewing its vendor plans in Germany and other European markets where it operates, given the debate on the security of Chinese network gear.
The Justice Department and Federal Communications Commission must also approve T-Mobile’s and Sprint’s merger. T-Mobile previously said it expected the deal to close in the first half of 2019.