Logo ofSaudi Contractors Authority (SCA)
Mohammed Alajlan, Chairman of the Saudi Contractors Authority (SCA), said that lower real estate prices without accurate pricing threaten contractors with financial distress and poor execution quality. 
He told Al Ekhbariya TV, commenting on the authority’s annual report, that the banking sector has shown in recent years the ability to keep pace with development objectives and finance projects. “However, the next phase requires the development of financing and financial products that suit the nature and needs of the contracting sector, in addition to providing specialized banking products and better governance of risks and cash flows,” he added.
Additionally, modern construction supports the goals of sustainability and carbon neutrality, in addition to increasing the efficiency of project execution, said the top official, explaining that the future direction is to transfer a larger portion of construction work from project sites to factories.
The value of future projects offered in the Kingdom exceed SAR 3 trillion. The rapid growth in the number of contracting sector establishments reflects an unprecedented stage of maturity and expansion in the sector. It is one of the main drivers of economic development and contributes to achieving the objectives of Vision 2030 through the implementation of major projects and development projects, according to Alajlan.
Commenting on the impact of geopolitical tensions, Alajlan stated that the contracting sector, like other sectors, is affected positively and negatively by geopolitical tensions. “Projects in the Kingdom are currently being executed normally, amid the availability of imported materials in good quantities and the continued flow of goods from foreign markets,” he continued.
The sector enjoys significant support from the industrial sector, with abundant local production of iron, cement, and construction materials, in addition to surpluses in some products, while local factories provide iron, cement, and ceramics, which supports supply chains, Alajlan concluded.
Logo ofSaudi Contractors Authority (SCA)
Mohammed Alajlan, Chairman of the Saudi Contractors Authority (SCA), said that lower real estate prices without accurate pricing threaten contractors with financial distress and poor execution quality.
He told Al Ekhbariya TV, commenting on the authority’s annual report, that the banking sector has shown in recent years the ability to keep pace with development objectives and finance projects. “However, the next phase requires the development of financing and financial products that suit the nature and needs of the contracting sector, in addition to providing specialized banking products and better governance of risks and cash flows,” he added.
Additionally, modern construction supports the goals of sustainability and carbon neutrality, in addition to increasing the efficiency of project execution, said the top official, explaining that the future direction is to transfer a larger portion of construction work from project sites to factories.
The value of future projects offered in the Kingdom exceed SAR 3 trillion. The rapid growth in the number of contracting sector establishments reflects an unprecedented stage of maturity and expansion in the sector. It is one of the main drivers of economic development and contributes to achieving the objectives of Vision 2030 through the implementation of major projects and development projects, according to Alajlan.
Commenting on the impact of geopolitical tensions, Alajlan stated that the contracting sector, like other sectors, is affected positively and negatively by geopolitical tensions. “Projects in the Kingdom are currently being executed normally, amid the availability of imported materials in good quantities and the continued flow of goods from foreign markets,” he continued.
The sector enjoys significant support from the industrial sector, with abundant local production of iron, cement, and construction materials, in addition to surpluses in some products, while local factories provide iron, cement, and ceramics, which supports supply chains, Alajlan concluded.
