Saudi Arabia Construction Equipment Rental Market Research Report, 2028

Saudi Arabia dominates the market in Middle East & Africa region. Saudi Arabia's revenue is heavily reliant on the oil and gas industry. The government is attempting to diversify its income sources and minimise its reliance on the oil and gas industry by adopting mega-budget programmes such as the Saudi Vision 2030 National Transformation Program. The government is pushing infrastructure development in the country in order to meet the goals established by the country's leaders. Several government initiatives, including the Red Sea Tourism Project, Qiddiya Entertainment City, and Riyadh Metro, are likely to increase demand for construction equipment rental services during the projection period. In 2021, the National Infrastructure Fund (NIF) will support on-going infrastructure development operations with the goal of attracting private investment and collaborations in the country. In accordance with the Kingdom's Vision 2030, the eastern province is seeing fast urbanisation, industrialization, and infrastructure development. The Eastern Province's emir, Prince Saud Bin Naif, recently started a Central Awamiyah initiative to establish a tourism destination as well as a civic, cultural, and artistic hub, which is projected to increase demand for construction equipment rental services. Zahid Tractor and Heavy Machinery Co. Ltd, General Contracting Company (GCC), Bin Quraya for Rental and Heavy Equipment, Industrial Supplies Development Co. Ltd. (ISDC Rental Company), Abdulla Nass & Partners Co. Ltd. (ANPC), and among others are the prominent players in construction equipment rental market of Saudi Arabia. According to the research report, “Saudi Arabia Construction Equipment Rental Market Research Report, 2028” published by Actual Market Research, the market is projected to add USD 0.52 Billion by 2028. The key drivers for the Saudi Arabian construction equipment rental market are favourable government policies and increased infrastructure development. Furthermore, shifting end-user preferences toward the adoption of rental construction equipment services due to their increased affordability and ease of availability are likely to play a significant role in accelerating market demand throughout the forecast period. Saudi Arabia's government has established stricter regulations for importing construction equipment into the country. The Saudi Arabian Standards Organization (SASO) has advised producers and responsible authorities on how to deliver the highest quality of service to beneficiaries, focus on improving technical standards, and protect customers' health and safety, among other things. As a result, building organizations, contractors, and dealers are increasingly focused on renting construction equipment including graders, backhoes, trenchers, and other similar machines, which is likely to drive the Saudi Arabia construction equipment rental market forward. A skilled operator with expertise and technical understanding of ARAMCO's (Saudi Arabian Oil Company) safety and security procedures for operators who will be working on ARAMCO's sites is necessary to ensure the smooth operation of the construction equipment. However, a provision for an operator may or may not be included in the construction equipment rental agreement between the companies. As compared to other construction equipment operators in the country, operators with ARAMCO certification earn almost 70% to 80% more money. As a result, the Saudi Arabia Construction Equipment Rental Market is expected to benefit from operator equipment bundling for efficient and effective construction equipment work. According to the World Bank, Saudi Arabia's population was 35,340,680 in 2021, with 20,437,084 males and 14,903,596 females. There are 8,671,039 people under the age of 14 in the overall population. The population of people aged 20 to 40 is 12,188,458. The urban population is 29,799,824 people, while the rural population is 5,462,868 people. Saudi Arabia's GDP in 2021 was USD 833.54 billion, with a 3.1% inflation rate and a per capita income of USD 23,585.9. Saudi Arabia is in the midst of Vision 2030, of a major transformation agenda that includes many megaprojects, such as the tourist destination of the Neom super-city; the 334 square Kilometres entertainment city of Qiddiya; the development at the UNESCO World Heritage site of Al-Ula; and the luxury, sustainable tourism-focused Red Sea Project. In 2019, the Government of Saudi Arabia announced various giga projects, such as the Red Sea Development Project, Qiddiya, Amaala, and Riyadh Metro, and Diriyah, worth of USD 56.2 billion. Recently, the country’s government announced a national housing strategy to build more than 1.5 million new homes at the cost of about USD 80 billion to address the shortage of affordable housing for Saudi citizens. The Ministry of Housing initiated ‘The Sakani program’ in 2017 as part of Vision 2030, and it was launched to provide more than 500,000 residential units across the Kingdom, at an estimated cost of USD 133 billion. By the end of the decade, the program aims to achieve 70% home ownership for Saudi nationals. In Riyadh, a total of 7,500 units had been delivered in the first three months, while in Jeddah, the number reached 1,800. Growing government investments in infrastructure and other strategic initiatives are expected to improve the Saudi Arabia country's construction sector. Therefore, with increase in the construction activities by government and the private sector the market for construction equipment rental has great potential. Covid-19 Impact: The spread of COVID-19 contributed to the decline of the Saudi Arabia Construction Equipment rental sector as a result of disruptions in the supply chain and production discontinuity. Furthermore, construction site closures and event cancellations have serious consequences for the equipment rental industry, including the health and safety of rental company employees, the suspension or cancellation of rental contracts, the management and maintenance of machinery, and the ability to retain staff and pay salaries. Considered in this report • Geography: Saudi Arabia • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028 Aspects covered in this report • Saudi Arabia Construction Equipment Rental market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Equipment type • Earthmoving • Material Handling • Concrete & Road Construction • Others By Application type • Residential • Non-Residential • Others (Infrastructure, industrial, real estate, etc.) The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Construction equipment rental industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.