Increased government spending and a population spike is expected to result in significant growth for the construction industry in Saudi Arabia after 2020.
Neom City, Qiddiya Entertainment City, and the Red Sea Project have all been touted as key driving factors in the forecast from property and construction firm Colliers International.
However, the cost of labour is on the rise, with the country’s national workforce initiative combining with a shortage of skilled and semi-skilled construction workers to impact budget lines.
In a report, the company also said that for the period of Q3 2018 to Q3 2019, prices for key construction materials remained stable overall, with slight individual movements.
The cost of cement and concrete rose by 4% and 3% respectively, while aluminium prices fell 3%.