DOCSLIB.ORG

The Saudi Arabia Construction Projects Market

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text

Load more

The Saudi Arabia Construction Projects Market Analysis of market potential May 2019 Prepared by Ed James Director of Content & Analysis, MEED Projects [email protected] © 2013 MEED Insight Saudi Arabia is by far the largest projects market in the GCC, both in terms of historical and future project values. This reflects its position as the Arab World’s biggest economy. The kingdom’s sheer geographical size, large population and extensive oil and gas output also gives the most diverse of all the region’s projects market, ensuring that it has opportunities across all sectors. It is for these reasons that Saudi Arabia consistently remains the most important and top priority market for most international companies. Future developments in the market will be guided by the framework set out in the Saudi Arabia 2030 Vision which envisages hundreds of billions of dollars being invested in transforming the economy through the development of massive new tourism, mixed-use and leisure developments across the kingdom. The largest of these is the $500bn Neom gigaproject which involves the creation of a new city in the northwest of the country. Work on this and other key developments such as Qiddiya, the Red Sea Tourism Project and Amaala are already under way and will only accelerate in the coming five years. With the largest projects pipeline in the GCC, worth more than $1.1bn, Saudi Arabia is set to maintain its position as the leading market in region. The sheer scale and breadth of opportunities make it a market that no one can afford to miss This report provides an example of some of the key future project opportunities in the state as well as some data on the overall size of the market. It has been prepared by MEED Projects, the region’s leading projects tracking service. To learn more, please visit www.MEEDProjects.com, email [email protected], or call +9714 8180318 © 2013 MEED Insight Market size Indeed, this is already being seen in the construction and transport sectors as contract awards have grown from $11.2bn in 2016 to $14.6bn in 2018. Higher oil prices have supported this increase in spending, but the government’s 2030 Vision for a wholesale reform of the kingdom’s economy by investment in mixed-use, leisure, tourism and transportation projects is the main driver for this and future project expenditure Value of construction and civil infrastructure contracts awarded in the GCC, 2016-18 ($m)* 40.000 35.000 30.000 25.000 20.000 15.000 10.000 5.000 0 Bahrain Kuwait Oman Saudi Arabia UAE 2016 2017 2018 3 Source: MEED Projects © 2014 MEED Projects Key drivers Higher oil prices in 2018 helped spur accelerating real economic growth in Saudi Arabia to a healthy 2.2%.With higher revenues on the back of an improved oil price which hit $72 a barrel average last year, the government announced in December a record budget of SR1.12 trillion equivalent to $302bn. Much of this budgeted expenditure will be spent on the government’s infrastructure plans in line with the Saudi Arabia 2030 Vision. Key projects as part of this strategy include the $500bn Neom ‘gigaproject’ and other key mixed-use developments like Qiddiya, Amaala, and the Red Sea tourism project Saudi Arabia budget, 2010-19 (SAR bn) Saudi Arabia key economic indicators, 1.400 2019 Nominal GDP ($bn), 2018 782.5 1.200 Real GDP growth, 2018 (%) 2.2 Real GDP growth, 2019f (%) 1.8 1.000 Non-oil real GDP growth, 2019f 800 (%) 2.1 Oil real GDP growth, 2019f (%) 2.8 600 Fiscal Breakeven Oil Price ($/barrel) 73.3 400 Government debt (% of GDP) 23.7 200 Current account balance (%/GDP) 3.5 Official Reserves ($bn) 349.4 0 CPI inflation (%) -0.7 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Unemployment rate (% of total Revenues Expenditure labour force) 5.4 Sources: IMF; Gov 4 2018 selected KSA construction contract awards Project Value ($m) Aramco Bahri Lamprell HHI - KSIMC: Package 6 1,100 Aramco Bahri Lamprell HHI - KSIMC: Package 5 1,100 Aramco Bahri Lamprell HHI - KSIMC: Package 4 1,100 PIF - Sharma Complex : Royal Residential Buildings (Package 2) 1,000 MOH - East Gate 960 Hundreds of construction PIF - Sharma Complex : Royal Residential Buildings (Package 3) 500 contracts were awarded last year PIF - Sharma Complex : Royal Residential Buildings (Infrastructure in Saudi Arabia ranging from Works) 500 hospitals and schools to palaces Saudi Aramco - Ajyal Site Development in South Dhahran (Phase 2) 300 and ports. Al Akaria - Al Widyan Development: Infrastructure 292 One of the reasons why Saudi Alandalus Property/Sulaiman Al Habib Medical :Sulaiman Al Habib Medical Center 250 Arabia is the number one target Jeddah Municipality - Jeddah Waterfront and Corniche Development: market for many companies is Phase 7 & 8 240 the sheer diversity of projects it Ministry of Housing - 997 villas in South Dammam 180 offers. Kingdom Holding - Jeddah Economic City : Infrastructure Works 165 Unlike some other markets in the Saudi Aramco - Labor Accommodation and Supporting Facilities Zone GCC, the kingdom has the F1 (Package 8) 160 broadest mix of project Abha Private Hospital - Abha Private Hospital (300 Beds) 160 opportunities thanks to its size MOH - Saudi Housing Project: Rabeyet Al Sharq Housing Complex 150 and wealth. Al Madina Al Munawarah Development Authority - Wadi Al Aqeeq Rehabilitation 133 Ministry of Finance - Expansion of Cargo Area of Salwa Port 128 MODON - Link Roads for Second & Third Industrial Cities in Jeddah 128 MOH - Al Majmaah Hospital (300 beds) 124 Source: MEED Projects 5 Top construction clients The construction market in Saudi Arabia tends to be dominated by government or quasi-government organisations. The leading client currently in terms of work under execution is the organisation responsible for the modernisation and expansion of the Grand Mosque in Mecca. The Ministry of Interior is in second place by virtue of its nationwide house building and security complexes programme, while the third-ranked client is the ADA, responsible for the $20bn-plus Riyadh metro project KSA selected top construction and infrastructure clients by value of work under execution ($m) 0 5.000 10.000 15.000 20.000 25.000 30.000 General Presidency for Grand Mosque and Prophet Mosque… Saudi Arabia Ministry of Interior ArRiyadh Development Authority Saudi Aramco Saudi Arabia Ministry of Education Saudi Arabia Ministry of Transport Saudi Arabia Ministry of Housing Royal Commission for Jubail & Yanbu Saudi Public Investment Fund Arabian Centres Saudi Arabia Ministry of Health Umm Al Qura for Development & Construction Saudi Arabia General Authority for Civil Aviation Jabal Omar Development Company Jeddah Economic Company Private Developer Raidah Investment Company Saudi Arabia National Guard Health Affairs Saudi Arabia Ministry of Defense & Aviation Saudi Arabia Ministry of Finance Source: MEED Projects 6 Top contractors There are many capable and experienced local contractors in Saudi Arabia as evidenced by the top four positions below of the leading contractors in the kingdom. But opportunities abound for companies from around the world. Sepco of China, Germany’s Siemens, Bechtel from the US and FCC of Spain are all examples of leading firms from around the world who have more than $1bn of contracts in hand in the country. KSA selected top construction and infrastructure contractors by value of work under execution ($m) 0 5.000 10.000 15.000 20.000 25.000 30.000 35.000 Saudi Binladin Group ABV Rock Group El Seif Engineering Contracting Nesma & Partners SEPCO Al Arrab Contracting Co. Beijing Emirates International Construction Co Joannou & Paraskevaides Almabani / CCC / Bechtel JV Bechtel Corporation Consolidated Contractors Siemens Al Rashid Trading & Contracting Fare Construction Al Ayuni Investment & Contracting Saudi Arabian Baytur Construction Co. Al Bawani Azmeel Contracting Saudi Construction Development Company FCC Construction Source: MEED Projects 7 Future pipeline Saudi Arabia has more than $1.15 trillion work of future projects in the pipeline, making it by far the largest market of all the GCC states. The biggest future sector by large margin is construction, highlighting the huge amount of construction work planned in the kingdom. In total, the construction and transport sectors have more than $825bn of known planned an un-awarded projects. Value of future KSA planned and un-awarded contracts by sector ($m) 675.741 249.736 136.883 41.982 21.789 16.562 16.376 12.014 Chemical Construction Gas Industrial Oil Power Transport Water Source: MEED Projects * Graph is based on a logarithmic scale for ease of visualisation 8 Future selected KSA projects There are hundreds of future construction and civil infrastructure contracts across Saudi Arabia, the largest of which are highlighted in the below table. They range from metros and high-speed railways to the world’s largest park and tourism development. Project Value ($m) SRO - Riyadh Dammam High-Speed Rail 14,000 Jeddah Metro Company - Jeddah Public Transportation Program (JPTP) 12,400 GACA - KAIA: Phase 2 10,000 Makkah Region Development Authority - Al Faisaliah City 10,000 GACA - KAIA: Phase 3 10,000 ADA - King Salman International Park 10,000 PIF - Red Sea Tourism Project 9,605 Eastern Province Municipality - Dammam Metro 9,000 Jeddah Metro Company - Jeddah Metro: Orange & Blue Lines 8,000 SAR - Saudi Landbridge 7,000 JDURC - Murooj Jeddah (Wadi Al Asla) 5,500 Taif Municipality - Taif Public Transport Network 5,000 PIF - New Jeddah Downtown 4,800 SRO - Yanbu Jeddah Jizan and Taif Khamis Mushayt Abha Railway 4,200 MMRTC - Mecca Metro: Line D 4,000 Qiddiya - The Qiddiya Project (Entertainment City) 4,000 MOT - King Hamad Causeway 4,000 MMRTC - Mecca Metro: Line A 4,000 MMRTC - Mecca Metro: Phase 1 (Lines B, C): Part 1: Package 3 (SYS) 3,547 Jeddah Metro Company - Jeddah Metro: Red Line 3,500 Source: MEED Projects 9 Some active current projects 1010 © 2013 MEED Insight King Hamad Causeway 11 Neom 12 Qiddiya 13 KAAR Gateway 14 Red Sea Tourism Project 15 © 2013 MEED Insight.
Recommended publications
  • Rail Opportunities 5 – 6 May 2014 Riyadh Intercontinental, Riyadh, Kingdom of Saudi Arabia

    Rail Opportunities 5 – 6 May 2014 Riyadh Intercontinental, Riyadh, Kingdom of Saudi Arabia

    SUPPORTED BY ORGANISED BY VISIT OUR WEBSITE: www.fleminggulf.com Expanding Trade Tracks : Boosting Economy in a Dynamic Region 5th Annual Middle East Rail Opportunities 5 – 6 May 2014 Riyadh InterContinental, Riyadh, Kingdom of Saudi Arabia Speakers & Panelists KEY PROJECTS SAPTCO Metro Eng. Ibrahim K. Khalid Al Hogail François-Xavier Perin, Dr. Shahid Khan & Light Rail Kutubkhanah Saudi Public Transport Régie Autonome des Saudi Binladin Group Metro Jeddah Company, Company (SAPTCO), Transports Parisiens Project Director, Saudi Arabia Project Chief Executive Officer, Chief Executive Officer, Development (RATP Dev) Saudi Arabia Saudi Arabia Chief Executive Officer, France Jeddah Metro Project Luis Sánchez Monserrat Rabii Ouadi, Huawei Dr. Gaffar Imtiaz Xu Zongxiang, CSR Administrador de Technologies, Head of Jeddah Municipality Vice President, China Business Development, Infraestructuras Senior Advisor to CEO, Saudi Transportation Vertical Ferroviarias (ADIF), Market, Middle East and Arabia Director, Saudi Arabia North Africa, China North South Railway Link Loay Ghazaleh, Ministry H.E. Dr. Nadhem Bin Eng Tariq Abdulrahman Cesare Brand, CIT – Rail, of Works, Bahrain, PPP Taher, National Transport Al Marzouki, Council of Secretary General, Theme Leader & Advisor to the Authority (NTA), Executive Saudi Chambers, Switzerland Undersecretary of Works, Director, Service Provision Center Chairman of Transport Haramain High Bahrain Sector, UAE Committee, Saudi Arabia Speed Rail Project H.E. Laith H. François Davenne, John Sfakianakis, Senior Representative,
  • Railways of the MENA Region, Tools of National and Foreign Policy

    Railways of the MENA Region, Tools of National and Foreign Policy

    DHEEI – Mediterranean Studies Railways of the MENA Region, tools of national and foreign policy Master’s Thesis submitted by GALLOY Théophile Academic year: 2018-2019 Thesis Supervisor: Dr. Silvia Colombo Acknowledgements I wish to express my appreciation to my family, my co-students and CIFE for their valuable support throughout this year. I am also very grateful for the advice given by my fantastic supervisor Dr. Silvia Colombo, who has kindly dedicated some time to read, correct and advise me on my work, whilst allowing me to remain creative in my approach and research. I would also like to extend my thanks to my previous manager, Mr. Stephane Downes, and my previous employer, Mr. Stephane Rambaud-Measson, for opening me the doors of the railway industry and for passing on to me their knowledge and passion for this fascinating sector. I would also like to thank Dr. Ayadi Soufiane, the surgeon who successfully removed my infected appendix in Tunis, which allowed me to continue my work unimpeded. 2 Acknowledgements_____________________________________________________2 Table of Contents_______________________________________________________3 Introduction___________________________________________________________4 Part I: Understanding the political benefits of railway infrastructures______________6 1) The economic and social benefits of rail_____________________________6 2) Rail as a nation building infrastructure, a tool of power________________12 3) Rail as a region building infrastructure, a tool of integration____________19 Part II:
  • Saudi Arabia: Transport & Logistics July 2016 Saudi Arabia: Transport & Logistics

    Saudi Arabia: Transport & Logistics July 2016 Saudi Arabia: Transport & Logistics

    Saudi Arabia: Transport & Logistics July 2016 Saudi Arabia: Transport & Logistics TABLE OF CONTENTS Map of Saudi Arabia ............................................................................................ 4 Executive Summary ............................................................................................. 5 Industry Structure ................................................................................................. 6 Market Overview ................................................................................................... 7 Rail Transport & Logistics ....................................................................................................................................................... 7 Figure: Planned Railway Network .......................................................................................................................................... 8 Public Transport ........................................................................................................................................................................ 9 Maritime Transport & Logistics .......................................................................................................................................... 10 Road Transport & Logistics ................................................................................................................................................... 11 Figure: Road Network by Region .........................................................................................................................................
  • Investigation Future Planning of Railway Networks in the Arabs Gulf Countries

    Investigation Future Planning of Railway Networks in the Arabs Gulf Countries

    M. E. M. Najar & A. Khalfan Al Rahbi, Int. J. Transp. Dev. Integr., Vol. 1, No. 4 (2017) 654–665 INVESTIGATION FUTURE PLANNING OF RAILWAY NETWORKS IN THE ARABS GULF COUNTRIES MOHAMMAD EMAD MOTIEYAN NAJAR & ALIA KHALFAN AL RAHBI Department of Civil Engineering, Middle East College, Muscat, Oman ABSTRACT Trans-border railroad in the Arabian Peninsula dates back to the early 20th century in Saudi Arabia. Over the recent decades due to increasing population and developing industrial zones, the demands are growing up over time. The Gulf Cooperation Council (GCC) is now embarking on one of the largest modern cross-border rail networks in the world. This is an ambitious step regarding the planning and establishment of the rail network connecting all the six GCC countries. This railway network will go through at least one city in each country to link the cities of Kuwait in Kuwait, Dammam in Saudi Arabia, Manama in Bahrain, Doha in Qatar, the cities of Abu Dhabi and Al Ain in the United Arab Emirates and Sohar and then Muscat in Oman in terms of cargo and passengers. The area of investigation covers different aspects of the shared Arabian countries rail routes called ‘GCC line’ and their national rail network. The aim of this article is to study the existing future plans and policies of the GCC countries shared line and domestic railway network. This article studies the national urban (light rail transportation (LRT), metro (subways) and intercity rail transportation to appraise the potential of passenger movement and commodity transportation at present and in the future.
  • Middle East Rail Projects Report

    Middle East Rail Projects Report

    Middle East Rail Projects Report A must have guide for anyone looking to access the Middle East Rail industry created by Published: May 2013 www.terrapinn.com/merail Contents Investment Overview. .................................................... 2 Executive Summary ....................................................... 3 Saudi Arabia ................................................................... 4 Saudi Railway Company Interview .............................. 7 Qatar ............................................................................... 8 Qatar Rail Interview ....................................................... 10 United Arab Emirates .................................................... 11 Etihad Rail Interview ..................................................... 14 Iran .................................................................................. 16 Oman .............................................................................. 17 Bahrain. .......................................................................... 18 Kuwait. ............................................................................ 19 Top Influencers in Middle East Rail ............................. 20 Building for the future www.terrapinn.com/merail Investment, investment, investment! The Middle East is fast shedding the traditional image of rolling sand dunes and meandering camel rides and replacing it with gleaming golden metro stations and high speed trains powering through the desert. Within the next 10 years we will see a complete
  • The Special-Purpose Carrier of Pipe Joints

    The Special-Purpose Carrier of Pipe Joints

    15JULY1988 MEED 25 Ramazarnanpour Ramazanianpour held talks Denktash. says he is ready for financial aspects of its offer. The group — with the ccfnmerce, heavy and light industry unconditional talks with Greek Cypnot Impreqilo, Cogefar and Gruppo m ministers arid visited the Iranian pavilion at the President George Vassiliou about the Industrie Elettromeccaniche per 24th Algiers international fair. future of the divided island. Impiantl all'Estero (GIE)—plans to start • The Mauntanian towns ot Ak|ou|t and Zouerat In March. Denktash insisted any talks work on the diversionary canal for the dam have received equipment including trucks, must be based on a proposal put forward m September (MEED 24:6:88). trailers, water tanks and tractors from their by UNSecretary-General Javier Perez de Bids for construction of the dam, which Algerian twin towns of Staoueli and Ouenza. Cuellar. The proposal has been reacted will replace the old Esna barrage, were by Greek Cypnots. submitted by 12 international groups in Denktash issued his statement on 6 July December 1986. The field was eventually after a three-day visit to Ankara, where he narrowed to three bidders — the Italian BAHRAIN met Turkey's President Evren and Prime group, Yugoslavia's Energoprojekt, and a Minister TurgutOzal. Canadian consortium of The SWC Group • Bahrain National Gas Company (Banagaa) Vassiliou has refused previous offers to and Canadian International produced 3.2 million barrels a day (b/d) ot Construction Corporation. liquefied petroleum gas (LPG) in 1987. This was meet Denktash on the grounds that the highest daily average since 1979 — its first unacceptable preconditions have been The Italian group brought in Switzerland's year of operations — and 5 percent up on the attached to any meeting.
  • Economic Update

    Economic Update

    Economic Update NBK Economic Research Department I 3 November 2020 Projects > Ensaf Al-Matrouk Research Assistant +965 2259 5366 Kuwait: Project awards pick up in 3Q as [email protected] > Omar Al-Nakib lockdown measures ease Senior Economist +965 2259 5360 [email protected] Highlights The value of project awards increased almost 82% q/q to KD 192 million in 3Q20. Projects awarded were transport and power/water-related; no oil/gas or construction projects were signed. KD 2.1bn worth of awards were penciled in for 2020, however, we expect a smaller figure to materialize. Project awards gather pace in 3Q20, but still fall short of However, with the economy experiencing only a partial recovery expectations so far the projects market is likely to remain subdued; only projects essential to the development plan are likely to be After reaching a multi-year low of KD 106 million in 2Q20, a prioritized. (Chart 3.) quarter that saw business activity heavily impacted by the coronavirus pandemic, the value of project awards increased . Chart 2: Annual project awards nearly 82% q/q in 3Q20 to reach KD 192 million. This is still KD billion, *includes awarded and planned modest by previous standards, however, and is 45% lower than 9 9 the KD 350 million worth of projects approved in in 3Q19. (Chart 8 Transport 8 Power & Water 1). One project award from the Ministry of Public Works’ (MPW), 7 7 accounted for the bulk (86%) of total project awards in the Oil & Gas 6 Construction 6 quarter. 5 Industrial 5 Total projects awarded in 2020 so far stand at KD 866 million 4 4 (cumulative), with about KD 1.3 billion still planned for 4Q20.
  • 42 MEED Listfinal.Indd

    42 MEED Listfinal.Indd

    “Dubai hopes the [$8bn] The MEED List Q capital injection will allow Nakheel to resume work” Agenda page 20 GCC BOND MARKET LAWYERS Six leading bond market lawyers in the region Craig Stoehr Richard O’Callaghan Anzal Mohammed POSITION Counsel, Latham & Watkins POSITION Partner, Linklaters POSITION Partner, Allen & Overy BIOGRAPHY Craig Stoehr led the opening of BIOGRAPHY Richard O’Callaghn joined Linklaters BIOGRAPHY In 2009, Anzal Mohammed advised Latham & Watkins office in Doha, Qatar in in Dubai in 2008, and worked on high-profile on the world’s largest sovereign sukuk, the 2008. Within 12 months he had worked on transactions in the region, including Abu Dubai government’s $2bn issue. He has a probably more bond deals by value than any- Dhabi’s Tourism Development & Investment strong track-record of working on bond and one else in the market, completing the state of Company’s $1bn sukuk issue in 2009, and its sukuk deals with the Abu Dhabi and Ras al- Qatar’s $7bn bond issue in November 2009, $1bn bond deal in the same year. He recently Khaimah governments, and state-backed cor- and its earlier $3bn deal. Stoehr also worked acted for the lead arrangers on Saudi real estate porates such as Mubadala Development on a $2.3bn bond for Ras Laffan Liquefied Nat- firm Dar al-Arkan’s $450m sukuk issue and is Company, Dubai Electricity & Water Author- ural Gas Company in 2009. His other clients currently representing the lead arrangers on ity, Jebel Ali Free Zone Authority, and the include Qatar Investment Authority, and state- Bahrain’s sovereign bond.
  • Thought Leadership Report GCC LOGISTICS 2017

    Thought Leadership Report GCC LOGISTICS 2017

    Thought Leadership Report GCC LOGISTICS 2017 Sponsored By: FOREWORD Mark Geilenkirchen, Chief Executive Officer SOHAR Port and Freezone The office we sit in, the clothes we wear and the food we eat all rely on business planning frameworks that manage material, service, information and capital flows around the globe. This is logistics and by necessity, in today’s increasingly complex business environment, it centres on the communication and control systems required to keep our world moving twenty-four hours a day, each and every day of the year. As one of the world’s fastest growing Port and Freezone developments, logistics is at the core of our business in SOHAR and connects us with markets all over the world. As this is our Year of Logistics, we asked MEED Insight to prepare this special report on the Middle East logistics industry as part of a series of SOHAR sponsored thought leadership reports. We define thought leaders as people or organisations whose efforts are aligned to improve the world by sharing their expertise, knowledge, and lessons learned with others. We believe this knowhow can be the spark behind innovative change, and that’s what we’ve set out to inspire by commissioning this series of reports. 2 GCC LOGISTICS 2016 The GCC Economy GCC Macroeconomic Overview GDP GROWTH GCC VISION PLANS The petrodollar fuelled GCC economies been fairly successful in lowering its oil All the GCC states have formalised strategic, have had a strong run during the first dependency to 42% of GDP in 2014, long- term plans aimed at transforming decade of this millennium, registering a down from 55% in 2008.
  • Egis Press Kit Middle-East | November 2017 1

    Egis Press Kit Middle-East | November 2017 1

    Egis press kit Middle-East | November 2017 1 CONTENTS 1. EGIS AT A GLANCE Erreur ! Signet non défini. 2. OUR GLOBAL OFFER 3 3. OUR PERFORMANCES IN 2016 4 4. OUR AMBITION 9 5. FOCUS ON MIDDLE-EAST 15 6. AWARDS Erreur ! Signet non défini. 7. MAIN REFERENCES 15 Egis press kit Middle-East | November 2017 2 1. EGIS AT A GLANCE 13,800 employees €1.020 billion of managed turnover in 2016 63% of managed turnover generated outside France 27 road operating subsidiaries around the world A network of 17airports in 8 countries With a focus on designing the long term, Egis is one of the world leaders in construction engineering and regional planning and development. Displaying a unique global offer, the Group combines the know-how of engineering with the skills of project development, capital investment, turnkey facilities operations and services for mobility. Egis is an active player and a trusted partner in the fundamental areas of transport, building, water, the environment and major structures, and also in energy, aviation, urban development and digital engineering. Egis press kit Middle-East | November 2017 3 2. OUR GLOBAL OFFER Egis assists its public and private sector clients in their development projects which link in with the major transitions underway in our society: energy and ecological, digital and technological, demographic and territorial. The Group proposes a global consulting and engineering service offer which contributes tailored and innovative operational and technical responses in a wide range of fields: urban resilience and adaptation of infrastructure to climate change, renovation of constructions and eco-design, transport and mobility, energy strategy (urban heating networks, waste-to-energy, etc.), digital development and urban intelligence.
  • The Dubai Logistics Cluster

    The Dubai Logistics Cluster

    THE DUBAI LOGISTICS CLUSTER Alanood Bin Kalli, Camila Fernandez Nova, Hanieh Mohammadi, Yasmin Sanie-Hay, Yaarub Al Yaarubi MICROECONOMICS OF COMPETITENESS COUNTRY OVERVIEW The United Arab Emirates (UAE) is a federation of seven emirates, each governed by its own monarch. The seven Emirates - Abu Dhabi, Ajman, Dubai, Fujairah, Ras al-Khaimah, Sharjah, and Umm al-Quwain - jointly form the Federal Supreme Council, which chooses a president every five years. Since independence from Britain in 1971, the ruler of Abu Dhabi has been elected as the president, while the ruler of Dubai has been elected as the Vice President and Prime Minister. Abu Dhabi serves as the capital and each emirate enjoys a high degree of autonomy. The country is strategically located in the Middle East, bordering the Persian Gulf, the Arabian Sea, Oman and Saudi Arabia. It occupies a total area of 83,600 km2 with around 1,318 km of coastline1. The population is estimated to be 9.3 million in 2015 with only 13% nationals2. UAE Economic Performance The UAE is an oil rich country, with most of its oil and gas production coming from Abu Dhabi. The country was ranked eighth worldwide in terms of oil and gas production in 2012 and seventh in terms of reserves3. Since the UAE’s establishment, oil revenues have been used strategically to develop basic infrastructure and provide UAE citizens with government services including subsidized utilities, free education, and medical services. As a result of oil price fluctuation, the country has understood the importance of diversifying away from this resource and started to develop its petrochemical sector.
  • Saudi Arabia After Oil Final Report – Group 1

    Saudi Arabia After Oil Final Report – Group 1

    University of Surrey Multi-Disciplinary Design Project 2018/19 Saudi Arabia After Oil Final Report – Group 1 Group Members Supervisors Umar Ahmed Professor Jonathan England Faizal Mohammed Amin Professor Zoran Milosevic Daniel Caplin Amina Mohamed Osman Amr Mahmoud Soliman Saudi Arabia After Oil Group 1 Executive Summary Due to the Kingdom of Saudi Arabia’s (KSA) significant oil reserves, it is currently the world’s largest exporter of oil. However, this position is proving to be unsustainable. There are numerous reasons for this unsustainability. Firstly, oil reserves are declining with only 266.2 thousand million barrels remaining, which according to the reserve to production ratio, will only be sufficient for 61 years. Secondly, the cost of production in the KSA is currently one of the lowest in the world, however, due to ageing oil fields, the low production cost may not continue. Moreover, the demand for oil will peak between 2035-40 making it no longer strategic for the KSA to be a lead exporter for a product with diminishing demand. Thus, it is essential the economy of the KSA undergoes diversification so that the nation does not continue to rely on oil revenue alone for economic growth. The reliance on oil revenue poses a significant risk to the KSA as 44% of the nation's GDP is from the oil sector whilst also indirectly contributing to the entire economy. As a result of the dependence on oil, the government are the main employer of KSA citizens, which is unsustainable as the proportion of youth entering the workforce will increase in the future.