Under the High Patronage of His Royal Highness Prince Salman Bin Abdul Aziz Al-Saud, Governor of Riyadh Region Partners in Development More than $2.5 Trillion of construction projects in GCC KSA: The largest construction & projects market in the region 687 current projects for $695 billion, 22% in the execution phase Organizers
The Kingdom of Saudi Arabia has the largest regional The Saudi Economy economy and is the world s largest oil exporter. As a result of prudent spending and buoyed by booming oil prices, Saudi Arabia was able to safely steer its economy through the global financial crisis and its aftermath. The country s growing population and its need to significantly upgrade infrastructure has resulted in ambitious plans in the coming years. In its Ninth Development Plan (2010-2014) Saudi Arabia earmarked more than SR 1.4 trillion for spending, the majority of which will benefit the construction and projects sector. The GCC countries A background In the wake of the global financial crisis, governments in the GCC countries increased their spending on infrastructure developments in a bid to stimulate their economies. Helped by stable oil prices, these governments have been able to continue with ambitious plans to upgrade public infrastructure in the domains of health, education, transport, water and waste. Additionally the drive to build a sufficient supply of affordable housing is now being seen to meet the requirements of growing populations. Today there is more than USD2.5 trillion worth of construction projects in the GCC countries. Although Saudi Arabia represents the largest share, there are still many ongoing and future opportunities in other GCC countries, particularly within the UAE. Saudi Arabia Key Facts KSA represents the largest share of construction projects in the region $695bn worth of current projects, 22% of which are in the execution phase Of the top 100 mega projects in the GCC, 35 are located in Saudi Arabia Contracts awarded in 2010 and 2011 are expected to reach $64.bn and $86bn respectively KSA has earmarked more than SR 1.4 trillion for spending in next five years Investments are targeted in agriculture, water, infrastructure, health, education, power, transport 1 million housing units to be constructed in next five years to meet 80% of demand 4.7% GDP growth in 2009, expected to rise to 6.4% in 2010 Construction machinery market expected to expand by 20% in the next five years With construction forming a major share of Saudi Arabia s development The Forum plans, the Construction and Projects Forum is the first gathering of its kind aimed at investors and decision-makers in the construction industry. The aim of the forum is to lay the right foundations for the future of the construction and building market, helping to guide future policy-making and building strong relations between local, regional and international firms and between the public and private sectors. This two-day event will shed light on the main developments and challenges facing the sector both locally and regionally, while spotlighting potential investment opportunities. At the same time the Construction and Projects Forum represents a vital networking hub for industry players. The adjoining exhibition offers companies in construction, engineering and building materials a platform to showcase the latest techniques in the field.
Value of projects signed and planned in KSA Projects planned and under execution in the Gulf States August 2009 (million $) August 2010 (million $) Change from 2009 to 2010 (%) Bahrain 60,906 75,332 23.7 $ bn Kuwait 266,994 238,945-10.5 Oman 93,761 93,580-0.2 Qatar 212,240 249,286 17.5 KSA 598,054 698,748 16.8 UAE 917,751 941,879 2.6 GCC Total Projects 2,149,706 2,297,770 6.9 Iraq 157,885 321,627 103.7 Gulf Total Projects 2,307,591 2,619,397 13.5 Source: Al Ahli Bank Source: MEED $ bn Value of the projects to be signed by sectors in KSA between 2010 and 2015 bn $335 Building and Construction Oil and gas Energy Petrochemical Water Desalination Infrastructure Source: Al Ahli Bank
Preliminary agenda Day One: Tuesday January 18, 2011 09:00-10:00: Inaugural Session and Awards Ceremony 10:00-10:45 : Opening of the Forum Exhibition and Coffee Break 10:45-12:00 Session I: Trends in the Construction and Projects Sector in the Kingdom Saudi Arabia is witnessing a new generation of development projects in infrastructure, oil and gas, and education among others. These projects play an important role in the Kingdom s drive to promote the development and diversification of the Saudi economy. They also contribute to the creation of many new opportunities for construction companies working in the Kingdom and challenge these companies to develop their administrative, financial and technical capacities. Perspectives on the Saudi economy in the coming period. Presentation of plans for new projects in major sectors by the parties concerned (housing, higher education, water and electricity, health services, etc.) A strategic assessment of the Saudi Construction sector. Project expenditures under the Ninth development Plan. 12:00-12:15: Prayer break 12:15-13:30 Session II: Financing Challenges Project financing has become a major challenge in the aftermath of the global financial crisis, which has affected the availability and cost of such financing in Saudi Arabia and other markets. The construction sector, like many others, has to deal with a new environment characterized by tougher lending conditions on the part of banks and difficulties in accessing other sources of funding. Complementarities of financial policies in project financing. The experience of local banks in financing building Evaluating the capacity of banks to finance new Regional banks and their contribution to urban development. Fundamental and secondary financing channels for the construction sector. 13:30-14:30: Lunch 14:30-15:45 Session III: Strategies for the Development of the Construction Sector in the Kingdom Recent years have seen fundamental changes in the Kingdom that have contributed to increasing the pace of economic reforms and development expenditures. This has compelled construction sector companies working in the Kingdom to revise their strategies in parallel with these changes and in order to enhance their growth opportunities in the face of the resultant challenges. The importance of merging and integrating contracting companies The impact of local and international changes on construction companies in the Kingdom The future of the construction sector in the Kingdom and requirements for its development. 15:45-16:00: Prayer break
16:00-17:15 Session IV: Requirements for the development of the working environment in the projects Continuing economic reforms in Saudi Arabia have aimed at boosting economic growth and promoting the contribution of the private sector to the enhancement of the investment and business climate. In light of current plans to implement major projects, it is important to develop the working environment for projects so as to allow the construction sector the opportunity to be on par expansion and development requirements in construction activity. Importance of the General Construction Contract. The process of upgrading laws and regulations governing the performance of contractors. The impact of the contractor classification system on the development of the construction sector. Domiciliation of jobs and the importance of having a reference for the sector, and a specialized financing fund. Day Two: Wednesday January 19, 2011 9:00-10:15 Session I: Government Projects: Opportunities and Challenges The Kingdom of Saudi Arabia is experiencing a building boom centered on projects for future generations. This is particularly obvious in the emphasis on strategic projects in the oil and gas, and water and electricity sectors, as well as basic infrastructure Presentations of the major Pension, Social Security, National Water and Electricity Aramco s experience in supporting Saudi contractors. Partnering with contractors and insuring the continuity of 10:15-11:30 Session II: The future of the Building and Construction Sector in the Gulf The global economic crisis has created a new environment in the Gulf building and construction industry with the adoption of new project spending policies by governments, and the retrenchment and increasingly strict terms of financing. This forced companies active in this sector and support sectors to redirect their strategies to adapt to these changes. Growth prospects in the Gulf construction sector. Strategies to face up to future changes and developments. The importance of partnerships in executing Difficulties facing contractors in Gulf markets. Promising markets in the Gulf countries. 11:30-11:45: Coffee break 11:45-13:00 Session III: The importance of Operation and Maintenance in the Continuity of Projects The operation and maintenance sector is considered an essential component in maintaining and lengthening the hypothetical age of projects, while preserving their performance quality. Activating this sector requires companies with special technical and administrative qualifications, particularly for strategic and hightechnology Government sector plans for establishing sustainable The effect of operation and maintenance on the performance of health service facilities. The necessity of specialized operation and maintenance companies. Operation and maintenance as an essential source of income. 13:00-13:15: Prayer break 13:15-14:15: Lunch break 14:15-15:30 Session IV: Modern techniques in Building Systems and Construction Materials The need to preserve the environment, reduce pollution and greenhouse gas emissions has created a building a worldwide trend towards green buildings. This movement forms part of key strategies to introduce sustainable development processes to the construction industry. Introducing the Saudi building code. New technologies in the building materials industry. The iron and steel industry and its relation to the building and construction sector. Role of the Saudi Council in promoting green buildings. 15:30 15:45: Prayer break 15:45 16:45 Session V: Real Estate Development and the Capabilities of the Construction Sector Studies and indicators show that the volume of investment in the Saudi real estate sector will witness an increasingly rapid growth during the next period and there are expectations that total investments new real estate projects will reach SR 484 billion by 2020. Latest reports also indicate that population growth and the noticeable expansion in projects and the most economic sectors will form two essential factors in the expected growth in real estate development activity, especially in housing. The real estate boom and its impact on the construction sector. Integrated system companies: pros and cons The ability of contractors to keep up with real estate development activity. The role of real estate entrepreneurs in boosting building activity. 17:00: Conclusion of the Forum and Recommendations
Riyadh Chamber of Commerce and Industry The Riyadh Chamber of Commerce and Industry is considered one of the oldest Chambers of Commerce and Industry in the GCC countries since it was established in 1960. The Chamber is today a proud platform at the service of the business sector and striving to promote this sector and overcome all obstacles hindering its progress to support and promote the development process, as well as to enhance the national economy and improve its tools and structures. As for the real estate department at the Chamber, it aims at building closer relations between developers, government bodies and employers, in addition to raising the technical and occupational awareness among developers, promoting cooperation, rehabilitating the sector s activities and reviewing obstacles facing developers. Al-Iktissad Wal-Aamal Group Al-Iktissad Wal-Aamal Group is a pioneering Group building bridges between business sectors in the Arab world for the past 3 decades since its establishment in year 1979. The Group combines publishing activities with organizing conferences and events that promote investment and commercial businesses, focusing their discussions on Arab economies through choosing timely topics and attracting competent speakers, officials and participants in addition to a wide contact network and well-known organization. The Group has offices and representatives in most Arab world and turkey, and organizes over 20 conferences annually in various countries. The Group also publishes 5 magazines that diversify between economic, social and technical specialties; with the flagship of the Group is Al-Iktissad Wal-Aamal Magazine. Riyadh Chamber of Commerce and Industry Contractors Management Tel: +96614040044 ext: 380 / 330 / 290 Fax: +96614055850 P.O.Box: 596 Riyadh 11421 www.riyadhchamber.org.sa Al-Iktissad Wal-Aamal Group Riyadh: Tel: +966 1 2932769; Fax: +966 1 2931837 Jeddah: Tel: +966 2 6141855; Fax: +966 2 6519465 Dubai: Tel: +971 4 2941441; Fax: +971 4 2941035 Kuwait: Tel: +965 2409552; Fax: +965 2409553 Beirut: Tel: +961 1 780200; Fax: +961 1 780206 PO.BOX: 5157 Riyadh 11422 cpf@iktissad.com www.iktissad.com