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The construction equipment rental market in Saudi Arabia is forecast to grow at a CAGR of 12 per cent from 2014 to 2020, mainly driven by rising costs in the construction sector
A Research and Markets report titled Saudi Arabia Construction Equipment Rental Market Forecast and Opportunities, 2020 states that there is a growing preference for renting than purchasing construction equipment. Though there is an increase in infrastructure spending, the easy availability of construction equipment on rent has made it a more viable option for contractors and builders.
Popular and high income generating equipment include cranes, excavators, wheel loaders, bull dozers, motor graders and telescopic handlers, revealed the report.
Specifically, Saudi Arabia’s south-west and north-central regions, comprising Riyadh, Mecca and Medina have accounted for a majority share in the country’s construction equipment rental market in 2014.
The report added that there are more than 300 major infrastructure projects planned over the next five years and the demand for equipment on rent will go up. For the same purpose, major rental players such as Bin Quraya, Zahid Tractor & Heavy Machinery Co. Ltd., and Industrial Supplies Development Co. Ltd., will continue to hold a prominent market share. Additionally, there’s scope for the emergence of smaller rental companies to play a key role in aiding the growth of the sector.