Kingdom executes $300bn worth of projects defying regional recession

The presentation organized by the German-Saudi Arabian Liaison Office for Economic Affairs (GESALO) in Riyadh.
Updated 28 September 2016
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Kingdom executes $300bn worth of projects defying regional recession

RIYADH: Defying the global and regional trends of recession, Saudi Arabia is currently executing projects worth $300 billion, said Fahad Mohammed Al-Hammady, chairman of the National Committee for Contractors at the Council of Saudi Chambers (CSC).
The Saudi government is also supporting several projects, while it is reviewing a large number of projects also.
“Whatever the case may be, a better future for construction section is anticipated,” said Al-Hammady, while speaking at a presentation organized by the German-Saudi Arabian Liaison Office for Economic Affairs (GESALO) in Riyadh.
The event was organized in cooperation with the CSC and the Germany’s Messe Munchen to introduce the world’s leading trade fair for architecture, materials and systems called ‘BAU Trade Fair’.
This trade fair, to be attended by a large number of Saudi exhibitors and visitors, will be held in the German city of Munich from Jan. 16 to 21.
A German delegation led by Mirko Arend, deputy director of Germany-based Messe Munchen and Oliver Oehms, Gesalo delegate, made the presentation.
Mark Pey, the newly-appointed general manager for Lufthansa, spoke about the airline’s services.
Referring to the current situation of the construction and contracting sector, Al-Hammady said that “the situation will become better in near future.”
Al-Hammady said that he looks forward for cooperation between the Kingdom and Germany in construction sector within the framework of the Saudi Vision 2030.
Despite the regional economic recession, the spending on projects are still continuing in the Gulf states including the Kingdom, he added.
In fact, the GCC’s construction community should expect that the construction business will bounce back in 2017.
This view has also been supported by Ben Hughes, director of capital projects at Deloitte Middle East, according to a report.
Hughes also noted that the region is tracking comparatively well with the relatively buoyant US economy.
“Clearly, there’s been a slowdown of project awards across the Gulf, and that’s a result of governments undertaking spending reviews,” Hughes has been quoted as saying.
In his presentation, Arend also spoke about the construction sector in his country, and made comparison between the Kingdom and Germany.

German BAU fair

Oehms, on his part, also gave details of the German BAU fair that will present “practice-oriented innovations and interdisciplinary solutions for commercial and residential construction and interior work for both new-buildings and renovation.”
Referring to Lufthansa operations on Saudi-German sector, Mark said: “Lufthansa German Airlines operates 24 weekly flights from Saudi Arabia providing a seamless connection between the key cities of the Kingdom and the airline’s hubs in Frankfurt and Munich.”
With these convenient connections, Lufthansa continues its long standing tradition of facilitating the closest of ties between the business communities of Germany and Saudi Arabia, he added.
Operating from Frankfurt and Munich, Europe’s most punctual hubs, Lufthansa offers business and leisure travelers from the Kingdom a global network with over 200 destinations in 76 countries.
Passengers from the Kingdom will find seamless connections throughout the Lufthansa network including those to the US and Canada with 20 destinations offered from Frankfurt, making Lufthansa the leader in linking the Middle East with the North Atlantic’s most important financial centers.


German firm wins mega order to build olive oil mill in Saudi Arabia

Updated 22 min 9 sec ago
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German firm wins mega order to build olive oil mill in Saudi Arabia

  • Scope of project, located in Al-Jouf, expected to encompass 5 million olive trees
  • Saudi Arabia investing heavily in developing domestic food industry

Arab News LONDON: A German company has won an order to build a massive olive oil mill in Saudi Arabia that will be the largest in Asia.
GEA won the order from The National Agricultural Development Company (NADEC), one of the largest agricultural and food-processing companies in the Middle East.
The scope of the project, located in the region of Al-Jouf, is expected to encompass 5 million olive trees from a single farm of 3,000 hectares, GEA said in a statement on Tuesday.
“Once the construction process is completed, this facility will be largest and most modern olive oil mill in Asia,” said Rafael Cárdenas, head of the Center of Excellence for Olive Oil at GEA.
Gulf states including Saudi Arabia, the region’s largest economy, are investing heavily in developing their domestic food industries in an effort to reduce their reliance on imports and boost their food security.
The contract to build the Al-Jouf olive oil mill is the second phase of an ongoing project and will enlarge the existing olive oil plant that was built in 2016.
Al-Jouf Agriculture Development Company is the largest modern olive farm in the world.