Market Trends of Saudi Arabia GRC Cladding Industry
This section covers the major market trends shaping the Saudi Arabia GRC Cladding Market according to our research experts:
Increasing Construction Spending in Saudi
- Saudi Arabia, the second-largest Arab state, is a nation in development. In a developing country, there is a tendency for the population to move to more urban cities where the employment rates are higher. The capital of Saudi Arabia and the biggest city, Ar-Riyad, is home to about five million inhabitants.
- Revenue in the Construction of Buildings is projected to account for USD 33.97bn in 2022. Growing construction projects in Saudi Arabia, coupled with increasing government initiatives such as the National Transformation Program of 2020, aiming to implement smart city projects in 10 cities of Saudi Arabia, would increase the market demand for GRC. Saudi Arabia is leading the world in hotel supply growth. The growing hospitality sector will drive the market with 73,057 hotel rooms in the pipeline across the planning, final planning, and construction phases.
- Saudi Arabia's residential sector saw an acceleration in the number of units completed in Q1 2022, helped by the government's continued efforts to deliver housing that meets the needs and aspirations of its citizens. With a total investment of SAR 4.13 trillion (USD 1.1 trillion), and an expected installation of over 555,000 residential units, 275,000 hotel keys, 4.3 million sqm of retail space, and over 6.1 million sqm of new office space, KSA may become the largest construction site in history.
- All these factors boost the demand for the GRC Cladding market in Saudi Arabia.
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Increase in demand from Hospitality Sector
- Though the increasing religious travel to the country is encouraging investments, the hospitality industry in Saudi Arabia has been recording dynamic key performance indicators for the past five years. The Kingdom is focusing on improving investment opportunities by introducing several projects. The increasing religious and leisure travel to the Kingdom has opened investment opportunities in the hospitality industry and resulted in an increasing number of new hotels opening in the key cities. This led to an increase in demand for GRC Cladding in Saudi Arabia's hospitality industry.
- Makkah, Riyadh, and Dammam/ Al Khobar are also among the top 10 locations that recorded the highest average daily revenue across the world with USD 176, USD 170, and USD 132, respectively, during 2018 making the region an attractive market.
- In 2022, Riyadh had the highest share of hotel construction projects in Saudi Arabia, with 45 hotel projects accommodating more than 9.3 thousand hotel rooms. This value was followed by Jeddah, with a share of 33 hotel construction projects in 2022.
- Saudi Arabia is leading the world in hotel supply growth. With 73,057 hotel rooms in the pipeline across the planning, final planning, and construction phases, the country is projected for a 67.1% increase in room supply once all projects are completed over the next two to three years.
- These increases are distributed across several regions of the country, with four of six submarkets expected to grow supply by 75% or greater if all projects are completed. Industries such as tours and traveling are also fueled because of changing lifestyles of consumers and growth in their spending capacity, which drives the hospitality industry. Many hotels and resorts are constructed using GRC, which helps grow the GRC cladding market.
