Saudi Arabia is the largest building materials market in the Middle East, in recent years, imports of building materials increased by 35%. Jeddah Islamic port Commissioner Tallawy said that the recent Saudi building materials imported 5 million 500 thousand tons, growth of 35%. With the "The Belt and Road", "Middle East The Belt and Road national strategy project in the Ministry of Commerce and China in Ningxia government project, will be built in the western port city of Jeddah, Saudi Arabia (Jeddah) China city.
Industry, services and agriculture accounted for about 60%, 38% and 2% of Saudi Arabia's gross domestic product (GDP), respectively. Oil is an important pillar of Saudi Arabia's economy. Despite the increase in government spending and infrastructure investment, including the expansion of the rail network and the construction of the Riyadh Metro (Riyadh), Saudi Arabia's GDP still grew by 3.6% in 2014, slowing to 3.4% in 2015. Although the non oil industry grew strongly, the Saudi economy was still hit by the fall in oil prices in 2015.
Construction grew by only 5.6% in 2015, down from 6.7% in 2014. Retail, wholesale, restaurant and hotel sector growth also slowed from 6% in 2014 to 3.9% in 2015. In view of the poor oil market outlook in 2016, the international monetary fund expects Saudi Arabia's GDP to grow by only 1.1%.
Economic diversification
The Saudi government is fully aware of the need for diversification in the country's dependence on oil. In April 2016, Mohamed bin Salman proposed the "vision" aspiring 2030 economic reform program, the IPO is expected to cash in $2 trillion, to build the world's largest sovereign wealth fund, for the protection of Saudi Arabia from the global oil market turmoil. In addition, other measures include levying new taxes, increasing female labor participation rates, and developing non oil industries. In the 2030 vision, tourism, military manufacturing and mining were identified as potential industries. In addition, the Saudi government also encourages the development of a number of industries, such as chemicals, petrochemicals, aluminum and plastics production.
In 2013, Saudi Arabia GDP reached $745 billion 300 million, an increase of 3.8%, the per capita GDP reached $25 thousand and 500. Saudi Arabia's non oil private sector continued to grow in recent years, representing an increase of 5.5%, while construction, retail, transportation, communications and non oil manufacturing grew by more than 5% a year earlier. In 2014, Saudi Arabia ranked sixth in the global retail trade index. In addition, Saudi Arabia ranks among the world's fifteenth most trusted economies, ranking fourteenth in 76 credit risk countries.
With the diversification of the Gulf countries, Saudi Arabia, like the United Arab Emirates, has laid out a large infrastructure expansion plan. The two countries in cooperation with the Committee for the Gulf (GCC, by the United Arab Emirates, Saudi Arabia, Kuwait, Qatar, Bahrain and Oman and other six countries) a member of the United Arab Emirates are mainly focus on business development, Saudi Arabia is committed to the development of various types of infrastructure and construction projects, including oil and gas facilities, hydropower plant, office building, highway and railway.
Gulf countries to invest heavily in infrastructure construction, the future of the Gulf region building materials market demand gap is large, according to statistics, at present, Saudi Arabia's domestic building materials market is still dependent on foreign imports, the proportion of up to 40-45%. According to the general manager of Dammam Manovo Hamad said in a tile factory, by the Saudi government and the private sector have launched large-scale infrastructure projects, domestic demand for cement tiles and marble building materials market, such as increased significantly. Similarly, huge demand has given birth to new tile and stone factories.
According to online information, with the Gulf countries have issued the green building planning and sustainable development planning, interior decoration building materials market in the GCC countries will continue to prosper, as the Middle East's largest market, Saudi Arabia 40% decoration materials imported, the vitality of the market should not be underestimated. Data show that the Saudi building materials market by 2014 19 billion 125 million to 2015 20 billion 250 million Riyal riyal.
According to the Middle East Economic digest (MEED), in 2006, more than 2100 projects were planned or started in the Gulf region, with a total value of more than $10000. 3, compared with $700 billion in 2005. The $10000 in the 6 Gulf Cooperation Council members accounted for about $880 billion, of which the planning project is $560 billion, another $320 billion in construction projects at different stages of development, Saudi Arabia accounted for $211 billion (24%).
Saudi Arabia's development plan is the core in Tabuk (Tabouk), Medina (Medinah), Rabig (Rabigh), Gizan (Jazan) region and the eastern provinces to build 6 large economic city. The 6 economic cities are expected to create 1 million 300 thousand jobs and accommodate 4 million 800 thousand people, pushing Saudi Arabia's GDP up by $150 billion, and the national per capita GDP from $15000 in 2006 to $33500 in 2020.
Strong financial resources of building materials companies, thriving building materials industry and the shortage of building materials
Saudi Arabia and Gulf state members of the construction company are mostly financially rich, and they demand more design, newer and better value for construction materials. In recent years, construction materials imported from Saudi Arabia have surged due to the booming construction industry. Although local manufacturers can meet part of the demand for building materials, the quality, design and design of their products are often inferior to those of imported goods.
The prosperity of the construction industry has not only led to material shortages, but also manpower shortages, resulting in an increase in prices of construction materials and wages in the region. Construction costs generally rose, rising by more than 20% since 2003.
The construction industry is booming, and it is obviously hard for construction materials, as well as machinery, furniture, interior products, household textiles and sanitary wares
