A large number of exhibitors at the Saudi Construction Expo, which recently concluded at the Riyadh Exhibition and Convention Center, expressed their satisfaction with the high demand for the products offered by the participating exhibitors, Participants in a tour organized by Amlak Real Estate newspaper confirmed that the exhibition achieved its intended goals through effective coordination and organization, attracting more than 500 local and international brands, Speakers expressed optimism about the upcoming development boom outlined by the Kingdom in its National Transformation Plan 2020 and Vision 2030, which will generate massive projects to boost demand in the construction sector.
Al-Qublan: The Future Lies in Solar Energy, Water, and Electricity
First, Ibrahim Suleiman Al-Qublan, owner and general manager of Al-Qublan Thermal Pipe Factory, spoke, describing the exhibition as one of the largest in terms of attendance by companies, contractors, and citizens, especially since now is a good time to build due to the drop in construction material prices. Al-Qublan described demand as good and unaffected by the movement and travel of many residents, and has remained robust due to the major development projects underway across the country.
Al-Qablan added that the Ministry of Housing’s projects influence demand and market growth, noting the need to intensify its efforts to keep pace with citizens" ongoing housing needs, and called on the private sector to continue cooperating and partnering effectively with the ministry so that it can serve as a pillar in fulfilling its mission.
Regarding the market’s outlook for 2018, Ibrahim Al-Qablan said that the near future will see steady market activity accompanied by falling prices and a willingness on the part of citizens and development companies to build, He called on exhibition organizers to focus future events on solar energy, water, and electricity solutions so that we can keep pace with the ambitions and goals of Vision 2030, which aims for conservation and innovation.
Eng. Al-Aqil: Include holidays in exhibition dates
For his part, Engineer Mohammed Ahmed Al-Aqeel, CEO of Al-Muna Plastic Products Factory, explained that competition in the Saudi market is fierce and is not greatly affected by economic fluctuations, and, by the grace of God and with His guidance, we are constantly working to develop our products, which are distinguished by being purely domestically manufactured and made from Saudi raw materials, Engineer Al-Aqil pointed to the high demand we are seeing in the market and what we observed through our presence at the exhibition, where we found excellent opportunities for sales and contracts among the large number of companies and individuals who visited the exhibition.
Al-Aqil noted that the current trend in construction will have a positive impact on the market’s recovery, especially since Vision 2030 includes massive infrastructure projects, all of which are based on construction and its components—particularly on the part of the Ministry of Housing, which has already begun actively constructingbuildings and complexes in partnership with private-sector companies, At the conclusion of his remarks, Al-Aqeel called on exhibition organizers to intensify their media and promotional efforts to market their events so as to attract all those interested in this sector. He expressed his desire to adjust the exhibition dates to include official holidays in order to ensure high attendance.
Al-Rabiah: 2018 will boost market sentiment
On the same topic, Abdul Latif Khalid Al-Rabiah, General Manager of Caparol Paints, confirmed that such a high turnout and level of interest were unexpected, which demonstrates citizens" eagerness to seek out and discover the best options, Al-Rabiah explained that the current market situation is showing remarkable progress, noting that there is a significant difference compared to
(2016–2017), and that the coming year, 2018, will see further positive trends in the market in terms of sales, especially given government initiatives by the Ministries of Education, Health, and Housing to implement numerous projects that will boost demand for all construction-related materials.
Al-Rabiah praised the exhibition’s excellent organization and marketing, as well as the support provided to participating companies, which had a positive impact on the exhibitors whose booths were packed with visitors—especially during the middle of the week. Had the exhibition included Friday and Saturday, the number of visitors and interested partieswould have been even higher." He also noted the participation of women in decision-making through their involvement and expertise within the exhibition halls, where they were actively present (both as exhibitors and participants).
Al-Rashoudi: Foreign Companies Will Drive Progress
For his part, Abdullah Al-Rashoudi, Assistant Director of Development at Al-Qasabi Contracting Company, expressed a positive view of participation in exhibitions, explaining that they provide investors with a deeper understanding of the construction industry and the new technologies and innovations showcased by major companies—particularly foreign ones—which will drive progress, Al-Rashoudi pointed to the intense competition in the construction sector, where companies strive to offer their best to maintain customer trust, noting that competition leads to higher quality in the delivery of all services.
Al-Rashoudi noted that the current market situation is experiencing a downturn, adding, however, that it remains favorable and meets the expectations of consumers and investors. This downturn may be due in part to new regulations that have led to a slight decrease in demand. Regarding the Ministry of Housing’s projects, Al-Rashoudi predicted that as the ministry increases the supply of housing units, this will have an impact on demand.
Hakimi: Financing Options Require Further Study
As for Abdullah Hakimi, Director of the Retail Sector at Bayt Al-Ibaa, he began his remarks by saying "The market is currently experiencing the calm before the storm," expressing his optimism and confidence in the market, especially since Vision 2030 includes strategic projects in its plans that will generate significant momentum from which the market will benefit.
Hakimi explained that financing remains an obstacle to home construction, calling on the relevant authorities to explore options and noting that the Ministry of Housing’s projects have not had enough time to impact the market, He praised the role of foreign participation in raising quality standards in real estate and construction, and Hakimi expressed his delight at the strong turnout of visitors. He concluded by noting that the construction market is strong, but the exhibition does not necessarily reflect the market’s strength.
Ramadan: Exhibitions Do Not Reflect Market Strength
In the same vein, Walid Ramadan, Product Manager at Safito, praised the exhibition’s organization, noting the early preparation and intensive media and marketing efforts, which had a positive impact on the number of visitors and interested parties, noting that there is general optimism regarding an improvement in market conditions, which is an indicator of the sector’s recovery. Ramadan emphasized that the presence of international companies gives the exhibition added strength through collaboration, knowledge transfer, and the opening of new markets, not to mention the competition that enhances product quality. He explained that while exhibitions aim to align supply with demand, the market’s influence is greater than that of these events, especially since many companies that did not participate still hold significant weight on the landscape of major projects.
