Overview of the railway infrastructure spending market in Saudi Arabia
The development of a rail network not only reduces the cost of transportation in terms of money and time but also helps to build connectivity between various regions within a country. In Saudi Arabia, the market for railway infrastructure spending will experience steady growth until 2020, and the prospects for its growth will be positively affected by the government’s growing emphasis on the development of the infrastructure sector in the country. Factors such as the development of railway freight traffic in the country and the construction of a high-speed rail (HSR) network in Saudi Arabia, which focuses on improving the railway connectivity to major cities such as Riyadh and Jeddah, will bolster the prospects for growth in this market until 2020. Extensive market analysis carried out by the analysts at Technavio has shown that the market for railway infrastructure spending in Saudi Arabia will grow at a steady CAGR of around 8% during the estimated period.
Technavio’s market research analyst has estimated that the presence of eminent factors like the augmented focus on sustainable infrastructure development will aid in the growth of this market until the end of the forecast period. In Saudi Arabia, the populace’s growing awareness about sustainability has resulted in an increase in the use of natural resources in many infrastructure and construction projects. Due to this paradigm shift in the populace’s preference, the government is focusing on the development of green infrastructure and buildings to reduce the environmental impact from the usage of conventional materials.
Competitive landscape and key vendors
The railway infrastructure spending market in Saudi Arabia has significant growth and profitability potential. In this market, local contractors like Saudi Bin Ladin, Saudi Ogeir, and El Seif tend to dominate the local construction market. Consequently, it is difficult for foreign construction companies to enter this market.
Top vendors in the market are -
- Al-Khodari
- Saudconsult
- Saudi Binladin
- Tarouk
Other prominent vendors analyzed in this market research are Al-Ayuni, Al-Khodari, Al Rajhi Construction, Al-Rashid Trading & Contacting, China Railway Engineering, El Seif Engineering Contracting, Mohammed Ali Al Swailem, Saudconsult, Saudi Binladin, and Tarouk.
Growth drivers, challenges, and upcoming trends: Railway infrastructure spending
Upcoming trends like the rising adoption of PPP in railway projects will foster the prospects for growth in this market during the forecast period. Many forthcoming projects in the country, particularly urban transit projects, are opting for alternative means of funding, which includes private finance, bond issues, and public-private partnerships (PPPs). The PPP rail projects are gaining traction in Saudi Arabia owing to benefits like its high efficiency in the overall construction process.
This report provides a number of factors contributing to the adoption, limitations, and opportunities of the railway infrastructure spending market in Saudi Arabia. It also offers an analysis of each factor and an estimation of the extent to which the factors are likely to impact the overall market growth.
Key questions answered in the report include
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the railway infrastructure spending market in Saudi Arabia?
- What are the key market trends impacting the growth of the railway infrastructure spending market in Saudi Arabia?
- What are the challenges to market growth?
- Who are the key vendors in the railway infrastructure spending market in Saudi Arabia?
- What are the market opportunities and threats faced by the vendors in the railway infrastructure spending market in Saudi Arabia?
- Trending factors influencing the market shares of Saudi Arabia.
- What are the key outcomes of the five forces analysis of the railway infrastructure spending market in Saudi Arabia?
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