The Saudi market is stagnant due to the falling oil prices and the country’s expected deficit in 2016. The local currency’s depreciation against the US dollar planned for the start of 2016 no longer seems feasible until at least 2017.
The following table shows the amounts involved in the main contracts in place at the reporting date:
(Share in millions of Euros)
|Residual backlog||Percentage of completion|
|Riyadh Metro Line 3||2,050.8||26.1%|
Riyadh Metro Line 3
On 29 July 2013, Salini Impregilo, as leader of an international consortium, won a portion of the maxi contract awarded by ArRiyadh Development Authority to design and construct the new Riyadh metro line 3 (41.2 km), the longest line of the challenging project for the metro system of Saudi Arabia’s capital.
The lot assigned to ArRiyadh New Mobility Consortium is an important part of the larger construction contract for Riyadh’s new metro system, worth approximately USD23.5 billion.
The value of the works to be carried out by the consortium, i.e., the design and construction of the entire Line 3, is roughly USD6.4 billion, including approximately USD5.3 billion for the civil works, of which Salini Impregilo will carry out 66%.
Outlook for 2016
The Group will continue to pursue new business opportunities in 2016 in the country.