Saudi Arabia to lead MENA infrastructure, construction spending over next 15 years

Updated 23 August 2012
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Saudi Arabia to lead MENA infrastructure, construction spending over next 15 years

RIYADH: Saudi Arabia is predicted to lead growth in the Middle East and North African (MENA) region’s infrastructure and construction spending over the next 15 years, a report by Bank of America Merrill Lynch said.
The infrastructure and construction market in the MENA region is among the worlds’ most attractive due to its size.
A total of $4.3 trillion will be invested in construction projects across the MENA region by 2020, an increase of 80 percent compared with current figures.
Saudi Arabia is expected to take the lead in regional infrastructure spending and construction projects as it responds positively to pressing social needs such as labor, housing and education.
The recent approval of the mortgage law will help drive growth in residential construction in response to the current housing shortage.
The construction and infrastructure sub-sectors in Saudi Arabia grew by 177 percent compared to last year and currently account for 46 percent of the 2012-2013 MENA project pipeline totaling $448 billion, according to the report.
“With its young and expanding population, Saudi Arabia should remain the most buoyant market, in line with its overall economic development plan,” the report said.
The MENA region is expected to account for 12 percent of global emerging markets and 4.4 percent of world construction markets within the next decade. Saudi Arabia is expected to continue to lead the way.


Saudi Arabian Military Industries to build five corvettes with Spain’s Navantia

Updated 19 July 2018
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Saudi Arabian Military Industries to build five corvettes with Spain’s Navantia

  • The program will start this autumn with the last unit to be delivered by 2022
  • The contract will generate 6,000 direct and indirect jobs for five years

RIYADH: Saudi Arabian Military Industries (SAMI) has announced the signature of a Joint Venture (JV) Agreement for the design and construction of five Avante 2200 corvettes with the Spanish state-owned shipbuilding company Navantia. The program will start this autumn with the last unit to be delivered by 2022.
In line with the contract, Navantia and SAMI have agreed on the establishment of a JV in Saudi Arabia, which will provide an exceptional opportunity to consolidate the position of the integrated systems and technologically advanced solutions provided by Navantia in the Saudi market and area of influence, perfectly aligned with the Kingdom of Saudi Arabia’s Vision 2030 by localizing 50% of the total military spending by 2030.
The contract will generate 6,000 direct and indirect jobs for five years, as follows: 1,100 direct jobs, more than 1,800 from the auxiliary industry, and more than 3,000 indirect jobs generated by other suppliers.
In this respect, the JV will focus on program management and combat system integration and installation, system engineering, system architecture, hardware design, software development, testing and verification, prototyping, simulation, modelling, and through-life support.
Ahmed Al-Khateeb, Chairman of Saudi Arabian Military Industries, said: “SAMI remains committed to being a key enabler of the Saudi Vision 2030, and the establishment of this Joint Venture with Navantia will localize more than 60% of ship combat systems work including, installation, and integration, which contribute to the Kingdom’s objective to be at the forefront of shaping the local military industries ecosystem. We will continue to explore collaborations and leverage partnerships that meet our key mandate to localize more than half of the Kingdom’s total military spending.”
Esteban Garcia Vilasanchez, Chairman of Navantia, said: “Navantia is very happy with the signature of this contract that means a starting point for the collaboration with Saudi Arabia. Navantia is committed to contributing to Saudi Vision 2030 and will support the country in this endeavour. The JV between SAMI and Navantia is an opportunity to develop capabilities in the country and jointly explore future opportunities.”
For the Avante 2200 contract, the JV will be responsible, among others, of supplying the Combat System of all five ships. Corvettes 4th and 5th will be finalized and delivered to the Kingdom of Saudi Arabia, where the JV will do the installation, integration and test of the complete Combat System.