The construction and contracting sector in the Kingdom is the largest in terms of investment and employment of the national workforce, with the value of investments in this sector to $680 billion, despite the presence of many obstacles in this sector, which have contributed to a decline in the number of companies over the past four years.

The number of construction projects

Given the significant role of the construction and contracting sector, the number of establishments has reached more than 150,000, despite the obstacles facing this sector, which have led to a reduction in the number of construction projects. The most significant obstacles include a lack of cash flow and insufficient financing from banks, institutions, and companies financial institutions. In this regard, a number of experts have called for the establishment of a specialized contractors" bank to support contractors in financing construction and contracting projects.

Construction projects and financial investment

Many experts in the relevant authorities and the construction and contracting sector believe that the cash flows available to contractors are not commensurate with the enormous scale of construction and contracting projects, and that there is an urgent need to inject liquidity into contractors working on government projects, as contractors" primary focus is currently on paying their workers" salaries before project implementation is completed. The obstacles facing the construction sector affect other related sectors, such as the industrial sector in all its fields and the transportation sector; thus, the contracting market requires a restructuring and reform of its system, particularly in terms of financing, as banks are failing to provide the necessary financing and are being overly cautious in doing so due to the lack of financial flows from the Ministry of Finance to this sector. Many experts and professionals in the construction and contracting fields view the sector as the engine of the national economy. Therefore, swift action is needed to complete projects that are currently underway, rather than launching new ones, especially since the percentage of stalled government projects currently exceeds 40%..

The engine of economic activity

The construction and contracting sector is essentially the engine of all economic activities Declining and shrinking spending, coupled with weak project financing, has led several obstacles to arise; given the lack of funding and limited financial injection, it is imperative to join forces to establish a specialized contractors" bank to support contractors and facilitate their financing by investors working together—this is a matter of the utmost importance, because a contractors" financing bank would follow the example of other banks, such as the Agricultural Bank and the Export Bank, and would work to resolve the financing crisis in the construction and contracting sector, because, without a doubt, this market helps resolve many of the obstacles facing this sector; the state spends heavily on implementing projects, and this can only be done through qualified contractors supported by financing entities, especially since the construction and contracting sector contributes to the activity of 200 other economic sectors, including factories and operational institutions, and provides significant employment opportunities, absorbing thousands of skilled nationals.