Saudi Arabia Construction Market Size, Trends, and Forecasts by Sector – Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q1 2025)
Summary
The construction industry in Saudi Arabia is expected to grow by 4.4% in real terms in 2025, supported by investments in the housing sector, energy, and transport infrastructure sectors, coupled with investments in preparation for the FIFA World Cup 2034 event that will be held in Riyadh. In November 2024, the government approved the Kingdom’s 2025 Budget, which includes a total expenditure of SAR1.3 trillion ($342.7 billion) for 2025. In a recent boost to the construction industry’s output, the government issued total number of 3,800 construction license in 2024, according to the data unveiled by the Ministry of Investment in February 2025.
The construction industry is expected to record an annual average growth rate of 5.4% from 2026 to 2029, supported by the government’s focus on boosting the tourism sector, coupled with investments in energy, housing, transport and sports infrastructure projects. In January 2025, the government revealed its long-term plan to boost the entertainment industry. This plan entails 29 investment opportunities over six sectors, including destinations, water parks, adventure parks, virtual reality parks, and e-gaming centers. This initiative will generate over SAR120 billion ($32 billion) in investments, create 100,000 direct and indirect jobs by 2030. Among the recent developments, in February 2025, Saudi Arabia’s Royal Commission for Riyadh City (RCRC) announced plans to develop eight road projects in Riyadh at an estimated cost of over SAR8 billion ($2.1 billion). Some of the projects include the northern part of the Prince Turki Bin Abdulaziz Al-Awwal Road Development Project, the middle section of the Al-Thumama Road Axis Development Project and the Imam Abdullah Bin Saud Road Development Project. Furthermore, in November 2024, the government signed nine metals and mining investment deals worth more than SAR35 billion ($9.3 billion) with an Indian mining company, Vedanta and a Chinese mining company Zijin Group. This involves the construction of a state-of-the-art smelter and refinery with an annual capacity of 400,000 tons and construction of a facility capable of producing up to 300,000 tons per year of copper rods.
GlobalData’s Construction in Saudi Arabia – Key Trends and Opportunities to 2029 (Q1 2025) report provides detailed market analysis, information and insights into Saudi Arabia’s construction industry, including -
- Saudi Arabia’s construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Saudi Arabia’s construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
This report provides a comprehensive analysis of the construction industry in Saudi Arabia. It provides -
- Historical (2019–2023) and forecast (2024–2028) valuations of the construction industry in Saudi Arabia, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
- Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
- Assess market growth potential at a micro-level with over 600 time-series data forecasts
- Understand the latest industry and market trends
- Formulate and validate business strategies using GlobalData's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
- 1 Executive Summary
- 2 Construction Industry: At-a-Glance
- 3 Context
- 3.1 Economic Performance
- 3.2 Political Environment and Policy
- 3.3 Demographics
- 3.4 Risk Profile
- 4 Construction Outlook
- 4.1 All Construction
- Outlook
- Latest news and developments
- Construction Projects Momentum Index
- 4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.7 Residential Construction
- Outlook
- Project analytics
- Latest news and developments
- 5 Key Industry Participants
- 5.1 Contractors
- 5.2 Consultants
- 6 Construction Market Data
- 7 Appendix
- 7.1 What is this Report About?
- 7.2 Definitions
- 7.3 CRI Methodology
- 8 About GlobalData
- 9 Contact Us
- List of Tables
- Table 1: Construction Industry Key Data
- Table 2: Saudi Arabia, Key Economic Indicators
- Table 3: Saudi Arabia, Commercial Construction Output by Project Type (Real % Change), 2020–29
- Table 4: Saudi Arabia, Top Commercial Construction Projects by Value
- Table 5: Saudi Arabia, Industrial Construction Output by Project Type (Real % Change), 2020–29
- Table 6: Saudi Arabia, Top Industrial Construction Projects by Value
- Table 7: Saudi Arabia, Infrastructure Construction Output by Project Type (Real % Change), 2020-29
- Table 8: Saudi Arabia, Top Infrastructure Construction Projects by Value
- Table 9: Saudi Arabia, Energy and Utilities Construction Output by Project Type (Real % Change), 2020-29
- Table 10: Saudi Arabia, Top Energy and Utilities Construction Projects by Value
- Table 11: Saudi Arabia, Institutional Construction Output by Project Type (Real % Change), 2020-29
- Table 12: Saudi Arabia, Top Institutional Construction Projects by Value
- Table 13: Saudi Arabia, Residential Construction Output by Project Type (Real % Change), 2020-29
- Table 14: Saudi Arabia, Top Residential Construction Projects by Value
- Table 15: Saudi Arabia, Key Contractors
- Table 16: Saudi Arabia, Key Consultants
- Table 17: Saudi Arabia, Construction Output Value (Real, $ Million)
- Table 18: Saudi Arabia, Construction Output Value (Nominal, SAR Million)
- Table 19: GlobalData Construction Market Definitions
- Table 20: Risk Dimensions
- Table 21: Ratings, Scores and Definitions
- List of Figures
- Figure 1: Middle East and North Africa, Construction Output (Real % Change), 2023–29
- Figure 2: Saudi Arabia, Construction Output by Sector (Real % Change), 2023–25 and 2026–29
- Figure 3: Saudi Arabia, Risk Summary
- Figure 4: Saudi Arabia, Risk Regional Comparison
- Figure 5: Saudi Arabia, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2020–29
- Figure 6: Saudi Arabia, Construction Output Value, by Sector (Real, $ Million), 2020–29
- Figure 7: Saudi Arabia, Construction Value-Add (SAR Million, 2018 Constant Prices)
- Figure 8: Saudi Arabia, Gross Fixed Capital Formation in Construction (SAR Million, 2018 Constant Prices)
- Figure 9: Saudi Arabia, Real Estate Loans from Banks (SAR Million)
- Figure 10: Saudi Arabia, Real Estate Price Index (2023=100)
- Figure 11: Saudi Arabia, Construction Projects Momentum Index
- Figure 12: Middle East and North Africa, Construction Projects Momentum Index
- Figure 13: Saudi Arabia, Commercial Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 14: Saudi Arabia, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 15: Saudi Arabia, Wholesale and Retail Trade, Restaurants and Hotels Value-Add (SAR Million, 2018 Constant Prices)
- Figure 16: Saudi Arabia, Commercial Real Estate Price Index (2023=100)
- Figure 17: Saudi Arabia, Industrial Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 18: Saudi Arabia, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 19: Saudi Arabia, Manufacturing Value-Add (SAR Million, 2018 Constant Prices)
- Figure 20: Saudi Arabia, Mining and Quarrying Value-Add (SAR Million, 2018 Constant Prices)
- Figure 21: Saudi Arabia, Non-Oil Sector's Value-Add (SAR Million, 2018 Constant Prices)
- Figure 22: Saudi Arabia, Total Credit Facilities Provided to Micro, Small, and Medium Enterprises (SAR Million)
- Figure 23: Saudi Arabia, Total Merchandise Export (SAR Million)
- Figure 24: Saudi Arabia, Infrastructure Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 25: Saudi Arabia, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 26: Saudi Arabia, Transport, Storage and Communication Value-add (SAR Million, 2018 Constant Prices)
- Figure 27: Saudi Arabia, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 28: Saudi Arabia, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 29: Saudi Arabia, Electricity, Gas, and Water Services Value-Add (SAR Million, 2018 Constant Prices)
- Figure 30: Saudi Arabia, Oil Sector’s Value-Add (SAR Million, 2018 Constant Prices)
- Figure 31: Saudi Arabia, Institutional Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 32: Saudi Arabia, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 33: Saudi Arabia, Residential Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 34: Saudi Arabia, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 35: Saudi Arabia, Real Estate Value-Add (SAR Million, 2018 Constant Prices)
- Figure 36: Saudi Arabia, Residential Real Estate Price Index (2023=100)
- Figure 37: Saudi Arabia, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 38: Saudi Arabia, Headquarters of Key Consultants (% of Total Project Pipeline)
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