Saudi gigaproject procurement tests supply chain
23 May 2023
Saudi Arabia gigaproject client Roshn has underlined the scale of the procurement challenge as the kingdom seeks to deliver its massive capital projects programme.
Speaking at the Future Projects Forum in Riyadh on 23 May, Ayman Baz, procurement associate director at Roshn, outlined the real estate developer’s materials requirements to deliver its housing programme, covering the construction of more than 10 communities in nine cities, with more than 50,000 units in total.
In total, Roshn estimates it needs:
- 40 million cubic metres of concrete
- 4.3 million windows
- 7 million metres of high-density polyethylene pipes
- 3.5 million air-conditioning units
- 4 million wooden doors
- 11.5 million LED light fittings
- 1 million steel doors
- 4.5 million square metres (sq m) of kitchen cabinets
- 80 million sq m of porcelain tiles
- 23 million wiring devices
- 250 million cubic metres of paint
- 6.5 million pieces of sanitary ware
Roshn is one of five official gigaproject clients that, when combined together, have a project pipeline of more than $700bn, a total that rises to more than $1tn when taking into account other construction and infrastructure projects in Saudi Arabia, according to regional projects tracker MEED Projects.
Delivering this pipeline is a significant challenge facing Saudi Arabia, especially given that it wants to source much of its procurement requirements domestically.
It remains to be seen whether there is sufficient labour, engineering, contracting and supplier capacity to complete the kingdom's projects within specified timeframes, and major clients are already looking to secure long-lead items in advance of a potential supply crunch or any inflation in material costs.
MEED's latest special report on Saudi Arabia includes:
> GIGAPROJECTS: Saudi Arabia under project pressure
> ECONOMY: Riyadh steps up the Vision 2030 tempo
> CONSTRUCTION: Saudi construction project ramp-up accelerates
> UPSTREAM: Aramco slated to escalate upstream spending
> DOWNSTREAM: Petchems ambitions define Saudi downstream
> POWER: Saudi Arabia reinvigorates power sector
> WATER: Saudi water begins next growth phase
> BANKING: Saudi banks bid to keep ahead of the pack
> DATABANK: Riyadh holds its buoyant economic heading
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