The materials used in the construction of massive projects like NEOM City, Jeddah Tower, Mukaab, and Qiddiya are driving a surge in demand for essential construction inputs like steel and concrete. These initiatives are shaping not just Saudi Arabia's infrastructure but also the direction of global trade.
NEOM City: NEOM, a futuristic city being built with a USD 500 billion investment in the north of Saudi Arabia, is a significant project. A large portion of the global steel and construction material production will be used in this venture. The city, which will host 9 million people, will run entirely on 100% renewable energy as part of its sustainability efforts.
Jeddah Tower: With the goal of becoming the tallest building in the world, Jeddah Tower is leading a monumental steel and concrete construction project, standing over a kilometer high. The materials used in this project will include high-quality steel sourced from international markets.
Mukaab (Riyadh): Located in Riyadh, the Mukaab is a 400-meter-tall cubic-shaped structure. Designed as a tourism and entertainment hub, this project is expected to drive significant demand for steel and concrete. The construction of this colossal structure will play a key role in global steel trade.
Qiddiya: Planned as one of the largest entertainment and sports complexes in the world, Qiddiya will also impact global trade dynamics. The import and supply processes for various construction materials will significantly affect the steel industry worldwide.
The steel and other construction materials required for these projects will not only influence Saudi Arabia's domestic trade but also impact global import and export processes. The surge in steel demand is creating opportunities, especially for major producing countries like Turkey, while also playing a significant role in the effectiveness and cost-efficiency of supply chains.
Export Potential: While Saudi Arabia is a regional leader in construction materials production, the production and supply of certain specialized materials required for large-scale projects will depend heavily on international cooperation and import processes. Some materials can be sourced locally, but the need for high-quality imported materials will remain. Export potential will be shaped by production capacity and global partnerships.
Import Potential: Saudi Arabia’s large-scale projects are significantly influencing the country’s overall trade volume and construction materials production capacity. In 2022, exports rose by 54% to reach USD 382 billion, while imports grew by 23.5%, reaching USD 171 billion. These figures highlight Saudi Arabia’s integration into global trade and the necessity of importing a large portion of the materials needed for these mega projects. While local resources like cement production may be used for some projects, the importation of high-quality materials is inevitable. This trend will continue to influence Saudi Arabia’s trade volume and shape the global supply chain for the materials required for these mega projects.
Comments
No comment yet.