Building The Future: Global-Local Synergy Powers KSA’s Economic Boom

Words by Stefano Iannacone, Director, Middle East and Africa at MAPEI Construction Chemicals LLC 

April 9, 2024

The Kingdom of Saudi Arabia (KSA) is bolstering construction projects across cultural, entertainment, logistics, tourism and hospitality sectors, implementing a 360-industry development approach as the Kingdom diversifies its non-oil sectors under the Vision 2030 agenda. With infrastructure and development projects such as AlUla, NEOM, and the Red Sea, Saudi Arabia is transforming the Kingdom’s landscape while setting the benchmark for sustainable construction practices. The construction sector is innovating to offer facilities that align with the expectations of environmentally conscious global travellers, bringing a new era of eco-friendly development to the region.

 The foundation of this integrated growth model is a project-centric approach that has become a focal point for the national agenda, transforming the Kingdom through giga-projects shaping the region's future. Leveraging its global expertise, MAPEI has made significant contributions to flagship developments such as the Riyadh Metro and the King Abdullah Petroleum Research & Study Center, among others. The projects require a tailored blend of technical prowess, diverse resources, and collective strengths of local, regional, and international expertise; ensuring each project is completed to exemplify the high standard of innovation and efficiency demanded by Saudi Arabia’s dynamic growth. MAPEI has been instrumental in the development of several Vision 2030 projects such as the Hegra Conservation Project, Diriyah Gate, NEOM – The Line, NEOM – The Connector, NEOM – The Spine, Red Sea – Amaala Triple Bay, AlUla, and Trojena. Furthermore, MAPEI is also contributing towards the development of upcoming entertainment projects such as Qiddiya, as well as 2034 FIFA World Cup.

While the project-centric approach is a necessity, companies should also incorporate a strategic distribution approach, which ensures that the benefits of global innovation are readily accessible within arm's reach across the region. The essence of this strategy is empowerment — equipping resellers with the knowledge and tools to excel in product representation, supported by training programmes that elevate product understanding and sales acumen.

International companies entering the KSA market must prioritise forging robust partnerships with local businesses to enhance their distribution networks and presence in new cities within the market. Essential to thriving in this dynamic landscape is a commitment to ongoing investment in local infrastructure and human capital. This strategy not only bolsters production capacity within the Kingdom but also aligns with the Saudization agenda; enabling companies to tap into Saudi Arabia’s skilled talent pool - which are vital for sustainable business expansion.

In order to maintain this synergy, continuous training—whether face-to-face or online—is imperative, and forging ties with universities helps secure a continuous influx of talent. Procurement strategies should favor local raw materials, and collaborations with local supply chains and transport firms are key to solidifying the upstream and downstream logistics. Additionally, by sponsoring local events and engaging in industry forums, exhibitions, and conferences, companies demonstrate their commitment to social responsibilities and build crucial networks for brand proliferation in KSA. Companies need to establish themselves as reliable, technology-forward, and solution-driven entities that are dedicated to quality and environmental responsibility, thus becoming the partners of choice for local contractors, applicators, and consultants.

At MAPEI, we are committed to leveraging local talent to expand operations in the Kingdom and wider region. With existing offices in Tabuk and Riyadh, and soon to open production plant in Tabuk, MAPEI employs a team of 50 professionals, and with the recent acquisition of Bitumat we aim to further expand the MAPEI KSA team by 300 strong. We are dedicated to increasing our positive impact on Saudi Arabia's future.

Furthermore, implementing a multifaceted strategy is crucial to blend global expertise and local excellence to drive growth that is inclusive and sustainable. This strategy perfectly aligns with MAPEI’s ethos to promote local production, enhancing sustainable practices. MAPEI’s commitment to environmental sustainability aligns with the Vision 2030's goals. We will introduce our first carbon-neutral products in the Saudi market with our MAPEI ‘Zero line’, offering contractors, and consultants, a range of products that achieve full CO2 emission offset throughout their entire life cycle, embodying Saudi Arabia’s dedication to sustainability.

By championing such integrated investment with the local construction and business stakeholders, we are not just constructing buildings and infrastructure; we are laying the foundation for sustained growth within KSA’s thriving market. It is this forward-thinking, collaborative approach that will enable companies to position themselves as leaders in the industry and play an active role in the growth of KSA.

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