Construction is booming in Saudi Arabia, which means the Gulf nation’s equipment rental rates are also predicted to rise by estimates of as much as 12 percent over the next five years.
TechSci Research, a Canadian industry analysis firm, forecasts consistent growth in Saudi Arabia’s public and private infrastructure development projects, which coupled with the rising price of construction equipment will translate to more equipment rentals.
Demand on the Saudi construction equipment rental market can be divided into six categories: cranes, excavators, wheel loaders, bulldozers, motor graders and telescopic handlers.
Karan Chechi, TechSci’s research director, said the consultancy expects cranes to be in largest demand.
“Cranes, followed by excavators, dominate Saudi Arabia construction equipment rental market,” Chechi said. “The crane rental segment is projected to dominate the market in terms of revenues through 2020, owing to their large fleet and essential requirement in construction activities. However, the telescopic handlers segment is expected to emerge as the fastest-growing category due to its use in multiple applications in the construction sector.”
Saudi construction equipment rental companies such as Bin Quraya, Zahid Tractor & Heavy Machinery Company, and Industrial Supplies Development stand to reap the benefits promised by the sector’s expected growth in coming years.
