Market Trends of Saudi Arabia Infrastructure Sector Industry
This section covers the major market trends shaping the Saudi Arabia Infrastructure Sector Market according to our research experts:
Growing Power sector:
While evolving customer demands and accelerating technological innovations will change the way the world buys, sells, and regulates electricity, the sector will be challenged by the very pace of the transformation.
Saudi Arabia's energy sector will witness an era of high-speed digital transformation as an investment of USD 90 billion fast-tracks its Vision 2030 sustainability, R&D, and manufacturing aims.
SEPCOIII Electric Power Construction Co, a subsidiary of POWERCHINA, signed an engineering procurement construction contract in 2019 with national power utility Saudi Electricity Company for the PP13 power plant project in Saudi Arabia.
Increase in GDP:
The Kingdom of Saudi Arabia implemented significant cuts in oil production in 2019, as part of an OPEC+ agreement. These have contributed to softening GDP growth to 1.7% year-on-year (y/y) in Q1 2019 from 2.4% in 2018. With US shale production continuing to increase in the first half of 2019, Saudi Arabia's oil production cuts were deeper than pledged, with output in July standing at 9.65mbd versus the voluntary limit under the OPEC+ accord of 10.3mbd.
Saudi Arabia is seeking to attract 1.6 trillion riyals (nearly USD 429 billion) in private sector investment over the next 10 years for a landmark infrastructure and industrial program as part of its economic diversification campaign.
Realizing the balanced-budget target by 2023 (as in the Fiscal Balance Program) is contingent on sustained fiscal consolidation and higher oil prices. The current account surplus is projected to widen with a shrinking trade surplus from lower oil exports receipts and higher private demand and Vision 2030-related infrastructure imports
