Dammam Commercial Construction Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 250 Million |
| Market Size (2029) | USD 356.5 Million |
| CAGR (2024 - 2029) | 6.09 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Dammam Commercial Construction Market Analysis
The Dammam Commercial Construction Market size is estimated at USD 250 million in 2024, and is expected to reach USD 356.5 million by 2029, growing at a CAGR of 6.09% during the forecast period (2024-2029).
- The development of the new energy project is a significant step toward increasing economic contribution from different sectors in the industrial and logistics hub of the Kingdom. Dammam is one of the leading contributors to Saudi Arabia's oil GDP, with diversification in this area a key factor for attracting foreign investments and developing development opportunities.
- The development of the logistics sector is an important component in Saudi Arabia's overall efforts to expand its road transport sector. In line with its commitment to strengthening and modernizing transport infrastructure, the Kingdom intends to invest more than SAR 500 billion (USD 123 billion by 2030) in this expansion.
- The demand is directed toward retail developments with solid entertainment and F&B offerings. Tenants want to maintain a presence in well-managed developments or secure space in new developments.
- There are currently 12,700 keys available in the total quality hotel supply. By 2025, with around 2,000 keys set to enter the market, assuming no additional delays and taking into account only projects that have already taken place, overall supply is projected to increase by 17%. The largest source of new supply will be the InterContinental Dammam (289 keys).
Dammam Commercial Construction Market Trends
The Demand for Office and Retail Space is Increasing
The Dammam metropolitan area witnessed positive office performance. In the last 12 months, a healthy demand and positive economic sentiment in the Eastern Region led to an 8% increase in Grade A office space rents. The rent went up from SAR 930 psm (USD 247.755 psm) to SAR 1,000 psm (USD 266.403 psm). At the same time, the occupancy rate increased to 81%, up from 75% last year.
In 2023, the average occupancy of Grade B space increased by 2.2% to 68.6%. Average rents for Grade A space increased by 7.5% to USD 253 per square foot in Dammam. On the other hand, the rent for Grade B increased by 4.8% to USD 147 per square foot.
The office stock amounted to around 1.3 million square meters, with over 46,000 square meters built in the first six months of 2023. By 2025, an additional 262,000 square meters are expected to be installed, representing a 25% increase.
The retail market in Dammam is somewhat subdued. The rental rate increased marginally by 0.5% to approximately SAR 2,300 per square foot (USD 612.727 psf) in the second quarter of 2023, while the demand for regional and super-regional malls continued to be maintained. The occupancy rate increased slightly by 1% during the same period, rising from 89% to 90%.
More Logistics Hubs are Being Constructed
Saudi Arabia announced an ambitious master plan to build 59 advanced logistics centers nationwide. As Saudi Arabia sets its sights on becoming a central global logistics hub, this strategic initiative is critical to the broader national transport and logistics strategy.
In H1, the indicators of hospitality market performance in Dammam were mixed. Occupancy increased to around 60%, up 10% from the previous year. The RevPAR increased by 8% and reached an average of SAR 242 (USD 64.46) during the same period of the previous year.
Saudi Arabia's Vision 2030 is built on infrastructure development, with exciting plans and substantial investment. The Kingdom’s strategic geographical location, situated at the crossroads of Asia, Europe, and Africa, positions it as a vital hub for international trade.
The new partnership agreement with Dammam Airport Company, providing logistics services from King Fahd International Airport in Saudi Arabia's Eastern Province, was concluded by AJEX Logistic Services, which is considered to be one of the most experienced express distribution and shipping solutions specialists in the Middle East.
Dammam Commercial Construction Industry Overview
There are several international players in Dammam’s commercial construction market, which is fragmented and highly competitive. The market is expected to provide opportunities for growth over the forecast period, which will likely increase the competition. Some significant players include Zamil Steel Holding Company Limited, Red Sea Housing Services, Al-Suwaidi Holding Company, M.M. Alharbi & Partners CO. LTD, and H. K. Al-Sadiq Sons Contracting Co. Ltd.
Dammam Commercial Construction Market Leaders
Zamil Steel Holding Company Limited
Red Sea Housing Services
Al-Suwaidi Holding Company
M.M.Alharbi & Partners CO. LTD
H. K. Al-Sadiq Sons Contracting Co. Ltd.
*Disclaimer: Major Players sorted in no particular order
Dammam Commercial Construction Market News
- January 2024: The Saudi Ports Authority (Mawani) and MEDLOG, the logistics arm of the world’s most extensive container line MSC, signed an agreement to develop the first-ever integrated logistics park and re-export zone at Dammam’s King Abdulaziz Port in Saudi Arabia. The logistics park, which is expected to be over 100,000 square meters and will have a handling capacity of 300,000 tonnes with logistical solutions for transporting freight across the Central and Eastern Regions and into the rest of the Kingdom, costs about USD 40 million.
- October 2023: Mawani and Saudi Global Ports, a Public Investment Fund-backed container terminal operator, signed a contract for the construction of a SAR 1 billion (USD 266.59 million) logistics park at King Abdulaziz Port in Dammam. The facility is part of a plan by Mawani to increase the number of logistics parks in Saudi ports from 12 to more than 1 million square meters.
Dammam Commercial Construction Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Green and Sustainable Building Initiatives
4.3 Market Restraints
4.3.1 Saudization (Nitaqat) Program
4.4 Market Opportunities
4.4.1 Increased Foreign Investment
4.5 Value Chain / Supply Chain Analysis
4.6 Porter's Five Force Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
4.7 Impact of Covid-19 on the market
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Offices
5.1.2 Retail
5.1.3 Industrial
5.1.4 Hospitality
5.1.5 Others
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Zamil Steel Holding Company Limited
6.2.2 Red Sea Housing Services
6.2.3 Al-Suwaidi Holding Company
6.2.4 M.M.Alharbi & Partners CO. LTD
6.2.5 H. K. Al-Sadiq Sons Contracting Co. Ltd
6.2.6 Tamimi Global
6.2.7 Ahmad N Albinali & Sons for Contracting & Trading
6.2.8 Al Yamama Group
6.2.9 Al Osais Contracting Co.
6.2.10 Saudi Cyprian Construction Company*
- *List Not Exhaustive
6.3 Other Companies
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
Dammam Commercial Construction Industry Segmentation
Commercial construction is the business of constructing and leasing or selling private-sector spaces. Offices, manufacturing plants, medical centers, and retail shopping centers are all examples of such spaces. The size and scale of commercial construction projects and businesses vary greatly.
A complete background analysis of Dammam’s commercial construction market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, along with the impact of COVID-19, is covered in the report.
Dammam’s commercial construction market is segmented by type (offices, retail, industrial, logistics, hospitality, and others). The report offers market size and forecasts in value terms (USD) for all the above segments.
| By Type | |
| Offices | |
| Retail | |
| Industrial | |
| Hospitality | |
| Others |
Dammam Commercial Construction Market Research FAQs
How big is the Dammam Commercial Construction Market?
The Dammam Commercial Construction Market size is expected to reach USD 250 million in 2024 and grow at a CAGR of 6.09% to reach USD 356.5 million by 2029.
What is the current Dammam Commercial Construction Market size?
In 2024, the Dammam Commercial Construction Market size is expected to reach USD 250 million.
Who are the key players in Dammam Commercial Construction Market?
Zamil Steel Holding Company Limited, Red Sea Housing Services, Al-Suwaidi Holding Company, M.M.Alharbi & Partners CO. LTD and H. K. Al-Sadiq Sons Contracting Co. Ltd. are the major companies operating in the Dammam Commercial Construction Market.
What years does this Dammam Commercial Construction Market cover, and what was the market size in 2023?
In 2023, the Dammam Commercial Construction Market size was estimated at USD 234.78 million. The report covers the Dammam Commercial Construction Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Dammam Commercial Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Dammam Commercial Construction Industry Report
Statistics for the 2024 Dammam Commercial Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Dammam Commercial Construction analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
