Contracting committee studies ways to ease rise in building material prices

The Permanent Coordination Committee for the Development of the Contracting Sector is studying proposals to address challenges to reduce building materials price inflation, said Waleed Sultan, General Supervisor for Classification Development at the Ministry of Municipalities and Housing.

The committee consists of 16 ministries and agencies and is headed by the Minister of Municipalities and Housing, Sultan told Al Eqtisadiah newspaper.

The entities that participate in the committee include the Ministry of Commerce, the Ministry of Finance, the Ministry of Investment, the Saudi Contractors Authority (SCA), and the Saudi Council of Engineers.

Saudi Arabia has 22,000 classified contractors and 16,000 new contractors, Sultan said. Meanwhile, he estimated the size of the contracting market at about SAR 280 billion in 2023 and 2024, expecting it to reach SAR 1 trillion in 2025.