Railway Infrastructure Spending Market in Saudi Arabia 2016-2020

Published: Feb 2016 Pages: 59 SKU: IRTNTR8750

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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Table of Contents

PART 01: Executive summary

  • Highlights

PART 02: Scope of  the report

  • Market overview
  • Top-vendor offerings

PART 03: Market research methodology

  • Research methodology
  • Economic indicators

PART 04: Introduction

  • Key market highlights

PART 05: Industry overview

  • GCC overview
  • Tendering and bidding in GCC
  • Infrastructure spending in GCC countries
  • GCC countries in railway sector

PART 06: Market landscape

  • Market overview
  • Major upcoming metro rail projects in Saudi Arabia
  • Market size and forecast

PART 07: Five forces analysis

PART 08: Market drivers

  • Development of new economic cities
  • Increased investments by SRO
  • Increase in exports through railways
  • Growth in tourism in Saudi Arabia

PART 09: Impact of drivers and challenges

PART 10: Market challenges

  • Hostile climatic conditions
  • Cost overruns and delays
  • Lack of skilled work force

PART 11: Impact of drivers and challenges

PART 12: Market trends

  • Use of technology in railway signaling
  • Increased focus on sustainable infrastructure development
  • Increased adoption of PPP in railway projects

PART 13: Vendor landscape

  • Competitive scenario
  • Key consortiums in Riyadh metro project
  • Prominent vendors

PART 14: Appendix

  • List of abbreviations

PART 15: Explore Technavio

Research Framework

Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

INFORMATION SOURCES

Primary sources

  • Manufacturers and suppliers
  • Channel partners
  • Industry experts
  • Strategic decision makers

Secondary sources

  • Industry journals and periodicals
  • Government data
  • Financial reports of key industry players
  • Historical data
  • Press releases

DATA ANALYSIS

Data Synthesis

  • Collation of data
  • Estimation of key figures
  • Analysis of derived insights

Data Validation

  • Triangulation with data models
  • Reference against proprietary databases
  • Corroboration with industry experts

REPORT WRITING

Qualitative

  • Market drivers
  • Market challenges
  • Market trends
  • Five forces analysis

Quantitative

  • Market size and forecast
  • Market segmentation
  • Geographical insights
  • Competitive landscape

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Key Questions Answered

  • What are the key global market and the regional market share?
  • What are the revenue-generating key market segments?
  • What are the key factors driving and challenging this market’s growth?
  • Who are the key market vendors and their growth strategies?
  • What are the latest trends influencing the growth of this market?
  • What are the variables influencing the market growth in the primary regions?
  • What are the factors influencing the growth of the parent market?

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