Following the news that the world’s largest construction companies from Europe and the Far East have won tunnelling contracts for the $500 billion futuristic Neom city project in Saudi Arabia;
Colin Foreman, Deputy Editor at MEED, a part of GlobalData, offers his view:
“Finding contractors to build the $1 trillion of infrastructure projects that Saudi Arabia plans to complete as part of its Vision 2030 economic transformation plan is a major challenge. Bankruptcies, late payments, and reputational concerns have led to many companies sitting on the sidelines of the Saudi market in recent years. However, the situation has changed in 2022, as major international players from Europe and the Far East are securing major contracts.
“According to regional projects tracker MEED Projects by GlobalData, international construction companies have already secured $7.5 billion of new work within Saudi Arabia the first half of this year—50% more than the whole of 2021. It also makes 2022 the best year for contract awards for more than eight years.
“With more contracts at the bidding stage, GlobalData’s MEED expects international contractors to build on their successes this year, as Saudi Arabia becomes a key global market over the coming decade.”
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