Market Size of GCC Construction Industry
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 169.30 Billion |
| Market Size (2029) | USD 216.80 Billion |
| CAGR (2024 - 2029) | > 5.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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GCC Construction Market Analysis
The GCC Construction Market size is estimated at USD 169.30 billion in 2024, and is expected to reach USD 216.80 billion by 2029, growing at a CAGR of greater than 5% during the forecast period (2024-2029).
The GCC projects market has faced various challenges in recent years, including the global pandemic, inflation, and geopolitical issues. These challenges have tested contractors, suppliers, and engineering firms as they try to adapt to the rapidly changing market conditions.
In 2020, the market experienced a low, with contract awards totaling just over USD 71 billion due to the impact of COVID-19. However, in 2021, the market rebounded strongly to almost USD 116 billion, thanks to higher oil prices and the resumption of delayed projects. At the beginning of 2022, there was optimism for continued recovery, but the market did not perform as expected. In total, about USD 94 billion worth of contracts were awarded in 2022, which was a decline of over USD 20 billion compared to the previous year. This contraction in 2022 can be largely attributed to a 25% decline in new contracts in the UAE and a 44% decline in Qatar. Qatar has reduced its capital expenditure in preparation for the FIFA World Cup, while the UAE continues to face challenges in its real estate sector.
The only positive aspect is Saudi Arabia, which has seen contract awards worth just under USD 54 billion, making its projects market larger than the combined markets of the other five GCC states.
