Market Insight

The Kingdom of Saudi Arabia (KSA) is experiencing a period of transformation and the investment being injected into the country is on a level previously unseen. His Royal Highness Prince Mohammad bin Salman bin Abdulaziz Al-Saud announced in July 2021 that $147 billion (550 billion riyals) is set to fund the transport and logistics sectors over the next decade. If the targets are achieved, these sectors will contribute 10% of the country’s GDP by 2030, a 4% increase from current quotas.

Prince Mohammed stated that one of the goals that officials want to implement includes establishing a 450km express train to link the cities of Makkah, Jeddah and Madinah which will connect the East and West of the Kingdom and the ports. In addition, the long-term plan is to join the Gulf-wide rail network, which will eventually connect Saudi Arabia with all six Gulf Cooperation Council Countries, including Bahrain, Kuwait, Oman, Qatar and the UAE.

Moreover, the government is seeking to expand existing airports in Jeddah and Riyadh and launch a new international airline as soon as possible. According to Bloomberg, the Kingdom’s existing national airline, Saudia, will retain a base in Jeddah that officials want to turn into a second hub for both religious and conventional tourism. A further part of the investment strategy includes the exploration of new rail technologies such as Hyperloop and Maglev, which provide high-speed rail services for both passengers and freight.

Saudi Vision 2030 is a roadmap of rapid expansion for all sectors in the built environment in Saudi Arabia and it is unlocking opportunities for growth at all levels. Within this strategy, there are Vision Realization Programs which set out Saudi Arabia’s intent to ‘improve the quality of life of residents and visitors… by developing the necessary environment to create more vibrant options that enhance the participation and experience of citizens and residents.’

What will this mean for the transport sector?

Transport in Saudi Arabia is going to experience exponential growth, particularly as the sector recovers from the COVID-19 pandemic. In order to develop these complex and high-profile projects, the Kingdom will need agile and optimised professionals who are seeking to make a real difference to the transport sector.

There has never been a better time to progress your quantity surveying career in Saudi Arabia, for example, as professionals will be required to oversee cost planning and estimating, value engineering, cash flow forecasts and tender services. With the anticipated major transport projects, there will be a wide scope of opportunities for quantity surveyors of all levels to use their skills and expertise, ensuring infrastructure, such as the Riyadh Metro project, is built focusing on safety, quality, sustainability, and value for money.

Alternatively, you could build your architecture career in Saudi Arabia. Architects at SNC-Lavalin use high-tech digital systems, innovative methodologies, and foster truly collaborative environments to enable the planning and delivery of transformational infrastructure developments.

• $147 billion is set to fund the transport and logistics sectors over the next decade
• 450km express train to link the cities of Makkah, Jeddah and Madinah
• New policies to upgrade the air, sea and land transportation systems in the Kingdom
• Saudi Arabia smart parking market stood at around $ 107 million in 2019 and is projected to grow at a CAGR of over 19% by 2026
• Saudi Arabia’s RCU launches autonomous pod vehicle service in AlUla
• The Transport General Authority (TGA) announced on February 2022 that the public bus transport projects in the Kingdom's cities and regions to be launched in the first quarter of 2022 will include nine cities and governorates, including 42 routes, with a distance of up to 1,660 kilometers
• The number of buses designated for these strategic projects amounted to 276, distributed among the Kingdom's cities and regions according to their need and capacity, while the total number of stops in all public transport projects reached 691