Saudi Arabia Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Saudi Arabian Construction Market Analysis and is Segmented by Sector (Residential, Commercial, Industrial, Infrastructure (Transportation), and Energy and Utility Construction). The Market Size and Forecasts are Provided in Value (USD) for all the Above Segments.

Saudi Arabia Construction Market Size

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Saudi Arabia Construction Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 70.33 Billion
Market Size (2029) USD 91.36 Billion
CAGR (2024 - 2029) 5.37 %
Market Concentration Low

Major Players

Saudi Arabia Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Saudi Arabia Construction Market Analysis

The Saudi Arabia Construction Market size is estimated at USD 70.33 billion in 2024, and is expected to reach USD 91.36 billion by 2029, growing at a CAGR of 5.37% during the forecast period (2024-2029).

  • As Saudi Arabia grows, the construction market will continue to grow due to increasing government and private partnership investments. In addition, the development of Mecca, Medina, and projects in a pilgrimage city have gained momentum as part of Vision 2030, with large sums spent to expand the Great Masjid of Mecca.
  • The construction sector plays a crucial role. Saudi Arabia is at the forefront of big city construction, with more than 5,200 projects with an estimated value of USD 819 billion.
  • In response to emerging trends and ambitious initiatives, Saudi Arabia's construction landscape is transforming dynamically. The line, NEOM's intelligent city initiative launched in 2020 near Riyadh, is one of the most critical projects. It is said that urban life and sustainability will be redefined by the groundbreaking USD 500 billion linear town. This development, covering a total of 170 km, is intended to prioritize nature and human well-being and to commit to renewable energy and advanced transport systems in the future.
  • A USD 1.5 billion contract for constructing a high-speed rail line in the NEOM region has been awarded to a joint venture between Italy's Webuild and Saudi Arabia's Sajco. The line will be connected to Oxagon, the industrial center of NEOM, by a 57 km high-speed connector train. The 70/30 split of the joint venture agreement for the railway line shall be between WeBuild.
  • Automated solutions are becoming more and more common for contractors in the country. Robotics bricklayers and drones, with artificial intelligence assistance, are becoming more common, lowering costs, saving time, and ensuring that safety standards are respected.
  • The Saudi National Industrial Strategy further emphasizes achieving global leadership in high-technology manufacturing and development, launched as part of the 2030 Vision. This includes a range of technologies, such as artificial intelligence, robotics, and 3D printing, which potentially change Saudi Arabia's construction industry and other parts of its economy.
  • Saudi Arabia is shaping its future through the construction sector and transformative projects such as NEOM to diversify its economic landscape. This kind of venture plays a key role in catapulting it to the global stage, and there is no slowdown in the pipeline of ambitious construction projects.

Saudi Arabia Construction Market Trends

Increase in Commercial Construction is Dominating the Market

Saudi Arabia’s construction sector has projects worth SAR 8 trillion (USD 2.1 trillion) in the pipeline for the next eight years. With 184,000 square meters of new retail developments centered on food and beverage outlets, entertainment facilities, or the public realm planned to be completed by 2025, Riyadh and Jeddah are at the forefront of a lifestyle shopping revolution transforming Saudi Arabia's retailing landscape.

With more than USD 1.25 trillion in infrastructure and property projects underway, Saudi Arabia is expected to be one of the world's most important construction centers. The Saudi Giga Projects report noted that the total value of completed infrastructure and real estate projects has reached USD 250 billion.

A hotel development portfolio of over USD 110 billion is available in Saudi Arabia. As a result, by 2030, there will be approximately 310,000 hotel rooms, with 42,033 currently under construction. With only more Chinese and US buildings, Saudi Arabia is ranked third in the world market for hotel construction. First-class four-star properties account for 77 projects and 30,229 rooms - 46% of the total, with the remaining 54% in the five-star luxury segment, equating to 90 builds comprising 33,524 keys.

An unprecedented demand surge has been observed in the office sector, with occupancy rates rising to 97 % for Grade A offices at commercial centers such as Riyadh. In Saudi Arabia, the office sector in its three main cities, Riyadh, Jeddah, and Dammam, sees a steady increase in demand. The real star of the market is Riyadh, a business hub with unprecedented demand and occupancy in Grade A and B office space at 97% and 85%, respectively.

Saudi Arabia Construction Market: Value of construction contract awards in Saudi Arabia from 2016 to 2022 ( in billion U.S. dollars)

Increase of New Port Development Leading the Market

As a sign of the Kingdom's success in developing its maritime sector, Saudi ports increased their annual container handling by 9% to 11,380,302 units in 2023. This represented an increase of 10,439,620 containers compared to the 2022 total. From 2023 to 2022, Mawani achieved a 12.07% annual increase in container handling, totaling 8,443,746 compared with 7,534,307 that year. The body’s cruise ship containers also saw a yearly increase of 8.96%, reaching 3,237,490 in 2023.

In 2023, Mawani signed agreements to establish five new logistics parks and centers with an investment exceeding SAR 4 billion (USD 1.06 billion). These agreements included the development of logistics parks at King Abdulaziz Port in Dammam, an integrated warehousing facility at Jeddah Islamic Port, and a comprehensive bunkering station at King Fahad Industrial Port in Yemen.

By adding 28 new maritime services connecting Saudi ports to eastern and western seaports, Mawani has continued its efforts to support global trade. The authority has entered into 16 partnership agreements with several international ports and national entities in the public and private sectors. These are to improve the status of the Kingdom's ports internationally and regionally in marine transport.

In December 2023, EDECS announced that it was awarded significant infrastructure and road works for the Jeddah South Container Terminal in Saudi Arabia with DP World Jeddah. In support of the Kingdom's maritime logistics and transport strategy, this project will increase the capacity of the port to handle containers.

The scope of the work undertaken by EdECS is to carry out infrastructure works covering a total area of 100,000 m2, which include earthworks, pavement surfaces, road markings, electrical grids, sewage networks, fire protection networks, and reefer grants.

Saudi Arabia Construction Market: Container traffic at the Jeddah Port in Saudi Arabia from 2018  to 2022 (in TEUs)

Saudi Arabia Construction Industry Overview

The Saudi Arabian construction market is fragmented and highly competitive, with the presence of major international players. The Saudi Arabian construction market will present opportunities for growth during the forecast period, which is expected to further drive the competition in the market. With a few players holding a significant market share, the Saudi Arabian construction market has an observable level of consolidation. Some of the key players include JGC Corp., SNC-Lavalin, Fluor Corp., Van Oord Dredging & Marine Contractors BV, and VINCI. The government's focus on creating general infrastructure and energy and utility construction projects to diversify its economy away from the oil industry is anticipated to help the construction industry's output.

Saudi Arabia Construction Market Leaders

  1. Bechtel

  2. CB&I LLC

  3. Fluor Corp.

  4. Tekfen Construction and Installation Co. Inc.

  5. Gilbane Building Co.

*Disclaimer: Major Players sorted in no particular order

Saudi Arabia Construction Market Concentration
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Saudi Arabia Construction Market News

  • December 2023: Larsen & Toubro (L&T) bagged a contract to establish various systems related to green energy generation and utilities for an ultra-luxury tourism destination in Saudi Arabia. The project is 4,155 square kilometers and features a pristine landscape, diverse natural ecosystems, and unique and intriguing heritage and local culture.
  • January 2023: China Harbor announced that it awarded two contracts to Saudi Arabia. The first contract was related to building the infrastructure of a new project in Riyadh, and the main scope of work included various pipeline facilities, earthworks, and ancillary housing construction facilities. This project was the second pipeline network project won by the company in the central region of Saudi Arabia in Riyadh, and it was also another significant achievement of the company's active "secondary operation" for core owners.

Saudi Arabia Construction Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Current Economic and Construction Market Scenario

    2. 4.2 Technological Innovations in the Construction Sector

    3. 4.3 Spotlight on Key Ongoing and Upcoming Projects

    4. 4.4 Industry Value Chain/Supply Chain Analysis

    5. 4.5 Impact of Government Regulations and Initiatives on the Industry

    6. 4.6 Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Saudi Arabia Vision 2030

      2. 5.1.2 Green and Sustainable Building Initiatives

    2. 5.2 Market Restraints

      1. 5.2.1 Saudization (Nitaqat) Program

      2. 5.2.2 Declining Crude Oil Prices

    3. 5.3 Market Opportunities

      1. 5.3.1 Increased Foreign Investment

      2. 5.3.2 Business Tourism

    4. 5.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 5.4.1 Bargaining Power of Suppliers

      2. 5.4.2 Bargaining Power of Consumers/Buyers

      3. 5.4.3 Threat of New Entrants

      4. 5.4.4 Threat of Substitute Products

      5. 5.4.5 Intensity of Competitive Rivalry

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Sector

      1. 6.1.1 Residential

      2. 6.1.2 Commercial

      3. 6.1.3 Industrial

      4. 6.1.4 Infrastructure (Transportation)

      5. 6.1.5 Energy and Utilities Construction

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Market Concentration Overview

    2. 7.2 Company Profiles

      1. 7.2.1 Bechtel

      2. 7.2.2 CB&I LLC

      3. 7.2.3 Fluor Corp.

      4. 7.2.4 Tekfen Construction and Installation Co. Inc.

      5. 7.2.5 Gilbane Building Co.

      6. 7.2.6 Jacobs

      7. 7.2.7 AL Jazirah Engineers & Consultants

      8. 7.2.8 Al Latifa Trading and Contracting

      9. 7.2.9 Afras Trading and Contracting Company

      10. 7.2.10 Al-Rashid Trading & Contracting Company*

    3. *List Not Exhaustive
    4. 7.3 Other Companies

  8. 8. FUTURE OF THE MARKET

  9. 9. APPENDIX

    1. 9.1 Macroeconomic Indicators (GDP Breakdown by Sector, Contribution of Construction to Economy, etc.)

    2. 9.2 Key Production, Consumption, Export, and Import Statistics of Construction Materials

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Saudi Arabia Construction Industry Segmentation

The construction market includes upcoming, ongoing, and growing construction projects in different sectors. These include but are not limited to geotechnical (underground structures) and superstructures in residential, commercial, and industrial structures, as well as infrastructure construction (like roads, railways, and airports) and power generation and transmission-related infrastructure.

A complete background analysis of the Saudi Arabia Construction market, which includes an assessment of the sector and the contribution of the industry to the economy, market overview, market size estimation for critical segments, key regions, and emerging trends in the market segments, market dynamics, and essential production and consumption statistics are covered in the report.

The Saudi Arabian construction market is segmented into residential, commercial, industrial, infrastructure (transportation), and energy and utility construction. The report provides market size and forecasts for the Saudi Arabian construction industry regarding value (USD) for all the above-mentioned segments.

By Sector
Residential
Commercial
Industrial
Infrastructure (Transportation)
Energy and Utilities Construction
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Saudi Arabia Construction Market Research FAQs

The Saudi Arabia Construction Market size is expected to reach USD 70.33 billion in 2024 and grow at a CAGR of 5.37% to reach USD 91.36 billion by 2029.

In 2024, the Saudi Arabia Construction Market size is expected to reach USD 70.33 billion.

Bechtel, CB&I LLC, Fluor Corp., Tekfen Construction and Installation Co. Inc. and Gilbane Building Co. are the major companies operating in the Saudi Arabia Construction Market.

In 2023, the Saudi Arabia Construction Market size was estimated at USD 66.55 billion. The report covers the Saudi Arabia Construction Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Saudi Arabia Construction Market segmented by sector includes a) Commercial Construction b) Industrial Construction C) Infrastructure Construction D) Energy and Utilities Construction e) Institutional Construction, and Residential Construction.

Saudi Arabia Construction Industry Report

The Saudi Arabia construction market is witnessing robust growth across various sectors such as residential, commercial, industrial, infrastructure, energy and utilities, and institutional construction, each uniquely contributing to the market's expansion. This growth is propelled by government initiatives aimed at diversifying the economy and enhancing infrastructure, with efforts to increase homeownership boosting the residential sector and investments in tourism and retail fueling commercial construction. Industrial construction benefits from initiatives to decrease oil dependency and enhance manufacturing, especially in the EV sector, while infrastructure projects gain from investments in transportation and utilities. The market also emphasizes sustainable and green construction practices, indicating a shift towards environmentally responsible building methods. Comprehensive development across these segments, supported by strategic investments and projects, continues to drive the market forward, aligning with the nation's long-term economic plans. For detailed statistics, market share, size, and revenue growth rates, refer to industry reports by Mordor Intelligence™, which include market forecasts, historical overviews, and free report PDF downloads. Additionally, construction companies in Saudi Arabia play a pivotal role in realizing these sectoral expansions, contributing significantly to the national economic landscape.

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Saudi Arabia Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)