Market Trends of Saudi Arabia Structural Steel Fabrication Industry
Increase in Housing Delivery Plan Driving Structural Steel Market
- The Kingdom aligns itself with the global housing policy trend, elevating the commitment by incorporating residential housing market development and housing access directly into the national Vision Strategy.
- To realize these objectives, a comprehensive overhaul of the housing market was imperative. This involved redesigning the housing market itself, redefining the mechanisms for enabling and financing the supply side and critically empowering and financially assisting Saudi families in acquiring their initial homes.
- Key initiatives on the supply side include the establishment of the National Housing Company (NHC), the introduction of Sharakat to fund and incentivize developments, Developmental Housing to address supply gaps at the base of the pyramid, the Building Technologies Stimulus Initiative (BTSI), the introduction of Wafi to encourage the delivery of off-plan units, and Etmam to streamline regulatory processes and approvals.
- In Saudi Arabia, the shortage of affordable housing is exacerbating. This, coupled with the advantages of prefabricated buildings and structural steel, such as cost-effectiveness and time efficiency, has led to an increased demand for prefabricated buildings and structural steel in the country.
Understand The Key Trends Shaping This Market
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Rapid Growth of Infrastructure Sector
- Saudi Arabia's bedrock of megaprojects and increasing investment opportunities demonstrate how infrastructure development has become a national priority for Saudi Arabia.
- As a result, Saudi Arabia is home to some of the region's most significant infrastructure projects, including the upcoming Riyadh Metro, Jeddah Metro, Makkah Public Transport Programme, AlUla International Airport, and Red Sea International Airport. Furthermore, the kingdom's infrastructure is undergoing a transformation, which is aided by the establishment of the new National Infrastructure Fund (NIF).
- To offset the negative consequences of urbanization, smart buildings, or structures that use technology-driven processes to autonomously govern a building's different operations and functions within an integrated management system, are becoming more common.
- These advancements provide steel producers a chance to rethink how steel products may contribute to future structures and communities. Breakthroughs like these are crucial for the future growth of steel materials in building construction.
- The Saudi capital, Riyadh, is a pivotal focus point for the country’s transformation and currently accounts for 18% of all real estate and development projects underway, totaling some USD 229 billion. This includes plans for over 241,000 homes by 2030, in addition to 3.6 million sqm of office space; the latter, of course, will come as welcome news to occupiers faced with a severe supply shortage that has helped to lift Grade A occupancy levels to 98%, on average.
