New wind in Middle East infrastructure: How do Chinese construction companies dig for gold in Saudi Arabia?

Recently, the global architecture circle has been staring at one place-Saudi Arabia. This country, once labeled as oil, is becoming a "battleground" for global contractors with waves of super projects ". From NEOM Future City to the Red Sea development project, the investment scale of tens of billions of dollars makes it the most exciting blue ocean after the traditional European and American markets.

Saudi construction market erupts password

data show that by 2033, the scale of the Saudi construction market will exceed 1.5 trillion Saudi riyals (about 2.7 trillion yuan), with an average annual growth rate of over 8%. Behind this, multiple forces are working together to promote.

1. Policy-driven

saudi Arabia's 2030 Vision sees infrastructure as the core engine of economic transformation. Over $500 billion of investment into NEOM Future City, Red Sea Project and other super projects, urbanization accelerated to generate a large number of transportation, energy, residential demand. The government has even raised the share of infrastructure investment to 15% of GDP, well above the global average, giving the market a boost.

2. Location + Funds

sitting on the status of the Asia-Africa-Europe hub, Saudi Arabia holds the "golden key" to the petrodollar ". It is not only a regional infrastructure investment center, but also an ideal choice for global contractors to avoid geopolitical risks. In recent years, the process of urbanization in Saudi Arabia has been accelerating, the proportion of young people is high, and the demand for housing, transportation, education and other facilities is becoming more and more urgent. In big cities like Riyadh, the number of projects under construction increased by 65% over 2019 to 1200, and tower cranes on construction sites have become the norm.

3. Long project cycle + technical barriers

saudi super projects are generally characterized by long cycles, large investments and high technology. For example, the NEOM project not only requires cutting-edge construction technology, but also tests the contractor's ability to integrate the entire industry chain. This feature raises the threshold of the market, but filters out small and medium-sized players, leaving plenty of space for the powerful construction giants.

Global construction giants gather in Saudi Arabia

the attractiveness of the trillion-dollar market has led the global construction giants to open a "beach-grabbing mode". Local enterprises, Chinese legions, old European contractors, and new forces in Japan and South Korea are staging the "Romance of the Four Kingdoms" in this hot land ".

Local Enterprises:

the Saudi Binladin Group, backed by royal resources, is the "spokesperson for Saudi infrastructure". From the Grand Mosque of Mecca to Riyadh landmarks, its more than 70 years of experience is superimposed on its own supply chain and localization team, firmly controlling government projects. In the first half of the year, the amount of new contracts signed exceeded 18 billion Saudi riyals, with government orders accounting for 68%.

Chinese-funded enterprises:

chinese enterprises such as China Construction are rapidly infiltrating with the strategy of "technology first and local deep cultivation. From Riyadh subway to NEOM core area, China Construction's actions in Saudi Arabia can be called textbook level: setting up regional headquarters, investing in factories, cultivating local talents, and breaking the market volume with technological advantages. The latest data show that the delivery efficiency of Chinese enterprises in Saudi Arabia has been improved to the forefront of the industry.

Old European:

european giants such as France's Wanxi and Germany's Hochtief have played a combination of "European standards + localization. Wanxi spent 2 billion euros to build a manufacturing base, using a standardized system to ensure quality, while deeply binding Saudi government departments. Its "Miracle of Ramadan Delivery" proves that efficiency and flexibility are king in culturally sensitive areas.

Japan and South Korea:

south Korea's Hyundai, Japan's Dacheng Construction and other Asian companies to avoid positive competition, focusing on energy, transportation and other sub-sectors. Through technology and project pilots, these companies are gradually expanding their market share and paving the way for subsequent expansion.

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