RIYADH: International cooperation with foreign companies is required to address the supply chain issues in Saudi Arabia's booming construction sector, according to a top real estate developer.
Speaking at the Real Estate Future Forum in Riyadh on Jan. 23, David Grover, CEO of ROSHN, said demand is being driven by the volume of developments in the Kingdom’s giga-projects.
As a solution, he suggested that Saudi firms need to be partnering with companies from around the world to address the commodities and supply chain issues.
He said his company has huge mandates in the Kingdom at the moment, as they are working hard to materialize the goals outlined in Vision 2030.
“In terms of the volume of construction we are trying to do at the moment is quite large. The supply chain within the Kingdom will no doubt struggle to support us and the rest of the giga-projects,” warned Grover.
The executive revealed that ROSHN is constantly carrying out negotiations with investors abroad to come into Saudi Arabia, as the Kingdom has a healthy business atmosphere to invest in.
"It is a great time to come to (Saudi Arabia). It is without a doubt the busiest construction and real estate market on the planet at the moment.”
According to a report by the US Saudi Business Council, the construction sector in Saudi Arabia maintained its growth momentum in the third quarter of 2022 with contracts worth SR25.2 billion ($6.7 billion) awarded during the period,
The report suggested that multiple Vision Realization Programs in the fields of tourism, housing, and infrastructure development drove the sector’s growth in the Kingdom.
Grover pointed out that the private sector also has a huge role to play even though most of the giga-projects in the Kingdom are fueled by the government.
“Retal and Al Akaria, two of our private sector partners, are absolutely competing with our own products in a very supportive way. There is plenty of space for local private companies to come along and work with us,” he explained.
According to Grover, ROSHN has a nationwide focus as it sails ahead in the real estate sector.
ROSHN’s first project SEDRA is being developed over eight phases in Riyadh’s northern sector. In November 2022, the company started the key handover at the first phase of development at SEDRA, ahead of the scheduled time.
ROSHN also launched the first phase of its Al Arous project in Jeddah in November, named ‘The Bride of the Red Sea’ which will offer more than 2,200 single-family units.
In December 2022, ROSHN acquired the shopping and business areas of Riyadh Front, a mega business and leisure development.