KSA Marble and Granite Market Outlook to 2028

KSA Marble and Granite Market Overview

The KSA marble and granite market is valued at USD 1.80 billion, driven by a strong focus on infrastructural development, government-backed initiatives under Vision 2030, and rising demand from the commercial real estate and residential sectors. The Kingdom's ambition to develop urban centers such as Neom, The Red Sea Project, and Qiddiya has significantly propelled the demand for high-quality building materials, including marble and granite.

Major urban centers like Riyadh, Jeddah, and Dammam are leading the market due to rapid urbanization, a booming construction sector, and growing investments in luxury residential complexes. These cities host a concentration of large-scale construction projects where marble and granite are extensively used for aesthetic and functional purposes. On the other hand, smaller cities are gradually adopting premium materials to meet the increasing demand for high-end architectural designs in private and public projects.

The Ministry of Industry and Mineral Resources (MIMR) has prioritized the domestic production of marble and granite to reduce dependency on imports and stimulate local industries. In 2024, over 60 quarries are operational across the Kingdom, producing a variety of marble and granite types for both domestic consumption and export markets. This focus on local production is also part of broader efforts to diversify the economy, decrease unemployment, and contribute to non-oil revenues.

KSA Marble and Granite Market Segmentation

By Type of Stone: The market is segmented by type of stone into marble, granite, limestone, travertine, and others. Marble dominates the market due to its high demand in luxury real estate and commercial building projects, particularly in large cities like Riyadh and Jeddah. Granite, known for its durability and wide range of applications in both interior and exterior constructions, is also growing rapidly. Limestone and travertine, while smaller segments, are seeing increased use in heritage and cultural projects driven by the government's focus on tourism and historical site development.

By Application: The market is segmented by application into residential, commercial, and industrial construction. The commercial sector leads the market, driven by large-scale projects such as shopping malls, hotels, and office buildings. The residential sector, particularly high-end luxury apartments and villas, is also a major contributor, with affluent consumers favoring marble and granite for interior dcor and landscaping. Industrial construction is a smaller segment but is expected to grow as more industrial facilities and infrastructure projects are initiated under Vision 2030.

KSA Marble and Granite Market Competitive Landscape

The KSA marble and granite market is highly competitive, with several local and international players providing a diverse range of products. Key players include Al Harbi Marble, Saudi Marble & Granite Factory Company (SMG), Al Ayuni Group, and Global Stone. These companies are continuously expanding their quarrying and production capabilities to meet the growing demand. They are also investing in advanced machinery and technology to enhance product quality and output. Strategic partnerships with construction firms and government-backed infrastructure projects are common strategies employed by these players to strengthen their market presence.

Company

Establishment Year

Headquarters

Key Products

Production Capacity

Technology Use

Local Projects

International Reach

Sustainability Initiatives

Partnerships

Saudi Marble & Granite Co.

1990

Jeddah, KSA

Al Harbi Marble

1991

Riyadh, KSA

Global Stone

2005

Dammam, KSA

Al Ayuni Group

1960

Riyadh, KSA

Red Sea Mining

1985

Yanbu, KSA

KSA Marble and Granite Market Industry Analysis

Growth Drivers

Government Infrastructure Projects: The Saudi governments Vision 2030 initiative has led to the development of megaprojects like Neom, Red Sea Project, and Qiddiya. These projects require extensive use of high-quality marble and granite for residential, commercial, and public buildings. The Neom project alone has an estimated investment of USD 500 billion, with significant demand for construction materials, including marble and granite. As part of Vision 2030, these infrastructure developments are designed to boost local material consumption, reducing import dependency by utilizing domestically sourced materials.

Local Production Boost Under Vision 2030: Saudi Arabia is focused on reducing its dependency on imported marble and granite through Vision 2030. The country has an estimated 60 quarries, with ongoing plans to expand domestic stone extraction and processing facilities. As of 2024, around 70% of the marble and granite used in local construction comes from domestic sources, reflecting a significant shift from previous years. This increase is driven by government policies to support local producers and encourage foreign investments in the stone processing sector.

Rising Demand in High-End Residential and Commercial Real Estate: KSAs real estate market has been experiencing a significant rise in demand for luxury housing and commercial spaces. Projects such as the Riyadh Development Strategy, which aims to double the citys population by 2030, require premium materials, including marble and granite, for building interiors and exteriors. In 2023, the luxury real estate market in Saudi Arabia grew substantially in terms of property development, driving the demand for premium materials like marble and granite in construction.

Market Challenges

High Production Costs and Energy Consumption: The extraction and processing of marble and granite are energy-intensive processes, leading to high production costs. The price of electricity and fuel for heavy machinery is a significant challenge for manufacturers. As energy prices fluctuate, so do production costs, impacting profitability, particularly for smaller players in the market. These costs are also passed on to consumers, affecting the competitiveness of locally produced marble and granite compared to imports.

Environmental Concerns: The quarrying process for marble and granite can lead to significant environmental degradation, including deforestation, soil erosion, and water pollution. In response, the government has introduced stricter regulations to minimize environmental damage. However, compliance with these regulations increases production costs, particularly for companies that must invest in sustainable technologies and practices. This challenge is particularly acute for smaller quarry operators, who may struggle to balance profitability with environmental responsibility.

KSA Marble and Granite Market Future Outlook

The KSA marble and granite market is expected to grow steadily over the next five years, driven by government infrastructure initiatives and the rising demand for high-end residential and commercial properties. The increased focus on local production and the use of advanced technologies will further enhance the markets competitiveness. Sustainable quarrying practices and environmental regulations will shape the future of this industry as the Kingdom balances economic growth with ecological preservation.

Future Market Opportunities

Expansion into International Markets: Saudi Arabias marble and granite industry has significant export potential, especially within the GCC and European markets. In 2022, Saudi Arabia exported approximately USD 619 million worth of stone and glass products, which includes marble and granite, making it the 39th largest exporter in this category globally, mainly to neighbouring GCC countries. With ongoing investments in quarrying and stone processing technologies, the Kingdom is well-positioned to increase exports, tapping into the growing demand for premium construction materials across international markets.

Investment in Sustainable Quarrying Practices There is increasing interest in sustainable quarrying and stone processing practices in Saudi Arabia. In 2024, the Saudi government allocated millions for sustainable quarrying initiatives, including waste reduction technologies and eco-friendly practices. The demand for green building materials is growing, especially among international buyers, presenting an opportunity for local producers to align with global sustainability standards.
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