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The Status of the Saudi Construction Industry during the COVID-19 Pandemic

Author

Listed:
  • Saud Almutairi

    (Department of Civil Engineering, College of Engineering, Qassim University, Unaizah 56452, Saudi Arabia)

  • Mudthir Bakri

    (Department of Civil Engineering, College of Engineering, Qassim University, Unaizah 56452, Saudi Arabia
    School of Civil Engineering, College of Engineering, Sudan University of Science and Technology, Khartoum 407, Sudan)

  • Abdullatif A. AlMunifi

    (Department of Civil Engineering, College of Engineering, Qassim University, Unaizah 56452, Saudi Arabia
    Civil Engineering Department, Faculty of Engineering, Sana’a University, Sana’a P.O. Box 1247, Yemen)

  • Mohammed Algahtany

    (Department of Civil Engineering, College of Engineering, Northern Border University, Arar 91413, Saudi Arabia)

  • Saud Aldalbahy

    (Al-Ekhtiyar Engineering Consulting, Riyadh 13212, Saudi Arabia)

Abstract

The outbreak of COVID-19 has had a profound impact on the Saudi construction industry as well as the country’s economy. The pandemic jeopardized the positive perspectives and growth in megaproject numbers, as it has amplified the constraints that prevent the construction sector from realizing growth. This research work is intended to evaluate the status of the Saudi construction industry during the COVID-19 pandemic. In order to achieve this objective, a three-phased methodology was developed. In the first part of the research, semi-structured interviews with forty industry experts were conducted. The gathered data from both, the literature review and interviews were synthesized. This process resulted in four domains to be explored: project performance measurement, workforce, supply chain, and financial management. The outcomes from phase one were then utilized to develop a questionnaire survey that was communicated to construction firms all over Saudi Arabia, for which 124 responses were received. Data analysis was carried out, and the obtained results were clarified and triangulated through a focus group discussion in the third phase of the research. The outcomes from the mixed-methods research methodology were aggregated to enrich and interpret findings and draw conclusions and recommendations. The findings indicate that the pandemic has had a total of ten core impacts. The highly impacted areas in the industry were the technical performance of projects, reduction in productivity, risk management practices, downsizing the scope of ongoing projects, reduction in new projects or contracts, material shortage, recruitment of manpower in the construction firms and affiliated projects, and the financial performance of the organization. In the meantime, it was found that the government implemented mitigation measures from which the sector benefited, where 27% of contractors obtained Saned system assistance, 51% received cash compensation and 22% received tax postponement. The scope of this study is limited to exploring the status of the Saudi construction industry (SCI) during the COVID-19 pandemic. The study findings are of added value and represent a significant contribution to the body of knowledge in the field. However, further research on the exit strategies bringing the industry to the new normal, including the use of cutting-edge technologies in the age of multi-faceted disruption would be of great importance.

Suggested Citation

  • Saud Almutairi & Mudthir Bakri & Abdullatif A. AlMunifi & Mohammed Algahtany & Saud Aldalbahy, 2023. "The Status of the Saudi Construction Industry during the COVID-19 Pandemic," Sustainability, MDPI, vol. 15(21), pages 1-21, October.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:21:p:15432-:d:1270447
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    References listed on IDEAS

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