21 initiatives to develop the sector
Rashoudi explained that the Saudi Contractors Authority is currently collecting all the challenges facing contractors from various parties, and has identified 21 opportunities to develop the sector, which are being worked on in parallel with the review of some executive regulations in several government agencies. The most prominent challenge, in his view, is financing, after interest rates jumped over the past two years, while at the same time emphasizing that the financing gap represents a wide door for investment, as the contracting financing portfolio is still below the needs of the market.
25 million project managers needed globally
<According to global studies, the world will need about 25 million project management professionals by 2030. In the Kingdom, the sector includes 314,000 establishments, of which 40,000 employ six or more workers. The number of establishments voluntarily registered with the authority has exceeded 20,000. To empower Saudi youth, the authority launched a three-week "specialized contractor" program and is working on a mechanism to link these contractors with major companies through joint contracts that extend for a full year.
Cybersecurity... a must-have obsession
<Al-Rashoudi emphasized that cybersecurity has become a real concern; the complete shift to electronic systems with the cessation of paper transactions requires ensuring the continuity of platforms with a high availability rate, as any interruption of service may hinder the progress of projects. He pointed out that the Contractors Authority currently accomplishes more than 95% of its services electronically.Attracting global entities and local conglomerates
<The Secretary General stressed that the Saudi market is one of the largest contracting markets in the world, which prompted the Authority to organize international conferences outside the Kingdom to attract international companies. He also urged local enterprises to merge to accelerate the achievement of targets, revealing that four to five major conglomerates have recently emerged, but the sector - which includes more than 300,000 enterprises - still needs more mergers. The authority has raised the issue of mergers for discussion through its online platform, but the response has been less than hoped for.<As part of its strategic plan, the authority aims for the Kingdom to have more than ten global elite contractors and more than 50 regional contractors by 2030. Al-Rashoudi pointed out that negotiations are underway with three to four international entities to offer their projects in Saudi Arabia, and these offers are being evaluated; more than 90 % of construction work is currently being carried out at the project site, while the Authority aspires to increase the percentage of manufactured work to exceed 70 %.
As part of its strategic plan, KDIPA aims to have ten contractors classified as world-class, in addition to 50 regional contractors by 2030.
