Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 63.84 Billion |
| Market Size (2030) | USD 81.64 Billion |
| Growth Rate (2025 - 2030) | 5.04% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Saudi Arabia Infrastructure Construction Market Analysis by Mordor Intelligence
The Saudi Arabia Infrastructure Construction Market size is estimated at USD 63.84 billion in 2025, and is expected to reach USD 81.64 billion by 2030, at a CAGR of 5.04% during the forecast period (2025-2030). Strong fiscal support under Vision 2030, a USD 1 trillion multi-year capital-spending plan, is accelerating activity across energy, transportation, and social assets. A growing pipeline of public-private partnership (PPP) schemes is widening the capital base, while giga-projects such as NEOM and New Murabba are institutionalizing modular, off-site, and AI-enabled building methods. Utility upgrades dominate award values, yet large transport corridors—including a 450 km high-speed rail link and airport expansions—signal a pivot toward multimodal logistics. Contractors that combine advanced construction technology with certified green practices are winning work, especially as authorities tighten carbon-reduction mandates before Riyadh Expo 2030 and the FIFA World Cup 2034.
Key Report Takeaways
- By infrastructure segment, utilities led with 69% of the Saudi Arabia infrastructure construction market share in 2024; transportation is forecast to expand at a 5.77% CAGR through 2030.
- By construction type, new construction accounted for 82% share of the Saudi Arabia infrastructure construction market size in 2024, while renovation is advancing at a 5.56% CAGR through 2030.
- By investment source, public funding held 77% of the Saudi Arabia infrastructure construction market in 2024; private capital records the highest projected CAGR at 6.18% between 2025-2030.
- By key cities, Riyadh captured 25% of the Saudi Arabia infrastructure construction market share in 2024, whereas the “Rest of Saudi Arabia” region is growing fastest at a 6.78% CAGR through 2030.
Saudi Arabia Infrastructure Construction Market Trends and Insights
Drivers Impact Analysis
| Driver | ( ~ ) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Vision 2030 capital outlays | +2.1% | Riyadh, Jeddah, NEOM | Long term (≥ 4 years) |
| Renewable-energy grid build-out | +1.3% | Western & Northern provinces, expanding east | Medium term (2-4 years) |
| Digital-infrastructure roll-out | +0.8% | Major cities first, nationwide phasing | Medium term (2-4 years) |
| Giga-project modular construction adoption | +1.4% | NEOM corridor, Red Sea coast, Riyadh | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Understand The Key Trends Shaping This Market
Download PDF
Escalating Public Infrastructure Investments Under Vision 2030 Accelerating Non-Oil Sector Expansion
Capital commitments are scaling rapidly, with municipal allocations rising from USD 17.3 billion in 2024 to USD 21.3 billion in 2025. The National Infrastructure Fund targets more than USD 53 billion in blended finance by 2025, attracting global contractors that can deliver complex, multi-use assets. A standardized project-management framework adopted by the Riyadh Infrastructure Projects Center has already trimmed average delivery times by 18%, improving cash-flow cycles and boosting private-sector confidence. Job-creation spillovers are sizeable, with an estimated 1.6 million positions to materialize by 2030. These initiatives collectively lift the non-oil share of GDP toward the government’s 65% ambition.
Large-Scale Renewable Energy Programs Driving Grid Expansion and Energy Storage Infrastructure in Remote Areas
Renewable capacity will nearly double to 12.7 GW by end-2025 and is set to hit 20 GW by 2027. The launch of a 2.5 GW battery-energy-storage system (BESS) program—USD 1.8 billion spread across five remote nodes—illustrates grid-resilience priorities. Each site adds 500 MW/2,000 MWh, necessitating new high-voltage transmission, substations and maintenance roads.[1]EnergyTrend – "2.5 GW battery-energy-storage (BESS) rollout details" Interim milestones of 8 GWh by 2025 and 22 GWh by 2026 position the Kingdom among the three largest energy-storage markets worldwide. Specialized EPC firms with remote-area logistics and grid-integration capabilities are therefore in high demand. Associated civil works also open tenders for roads, accommodation camps and service ports, deepening the Saudi Arabia infrastructure construction market footprint in sparsely populated regions.
Nationwide Push for Digital Infrastructure Advancing Fiber-Optic Networks and 5G Tower Deployment
Saudi telecom operators—STC, Mobily and Zain KSA—are leveraging artificial-intelligence tools to optimize 5G performance. More than USD 24.8 billion is earmarked for digital infrastructure, targeting 99% internet penetration. AI spend is projected at USD 1.9 billion by 2027, catalyzing data-center build-outs inside the new Cloud Computing Special Economic Zone. Edge-computing nodes and fiber backhaul corridors demand sophisticated power and cooling systems, a niche where contractors with mission-critical facility experience are gaining contracts. The combination of cloud-first policy directives and rapid urban adoption patterns is accelerating tower densification beyond Tier-1 cities, broadening the Saudi Arabia infrastructure construction market's revenue base.
NEOM and Giga-Project Pipeline Fueling Demand for Modular, Off-Site, and Advanced Construction Methods
NEOM’s USD 500 billion blueprint covers 26,500 km², forcing a shift from traditional on-site builds to factory-assembled volumetric modules. AI-driven scheduling and predictive-analytics engines reduce material waste and rework rates. Contractor training programs aligned with Saudization objectives are creating a domestic workforce skilled in digital twins and robotics. A recent USD 600 billion foreign-investment commitment is expected to accelerate adoption of low-carbon cement and 3D-printed components. These factors collectively enhance schedule certainty and sustainability credentials, sharpening the competitive edge of technologically advanced builders across the Saudi Arabia infrastructure construction market.
Restraints Impact Analysis
| Restraint | ( ~ ) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Cement & steel supply bottlenecks | -0.9% | Nationwide, acute in high-growth clusters | Short term (≤ 2 years) |
| Slower financial close for mid-tier PPPs | -0.7% | Secondary cities & smaller municipalities | Medium term (2-4 years) |
| Expat-labor policy uncertainty | -0.6% | Country-wide, especially labor-intensive projects | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Rising Input Costs Due to Cement and Steel Supply Bottlenecks Affecting Project Budgets
Construction costs are expected to inflate 3.4-7% in 2025 as global tariffs disrupt materials supply chains. Steel demand is growing 3.9% annually, yet rebar and wire-rod capacity remains constrained. Labor accounts for up to 40% of costs, amplifying budget stress where skilled trades are scarce. Developers are hedging with early procurement and exploring AI-enabled cost-management tools. Firms versed in modular designs and alternative composites gain a buffer against volatility, giving them a margin advantage in the Saudi Arabia infrastructure construction market.
Delays in Financial Close for Mid-Tier PPP Projects Outside Flagship Developments Slowing Execution
Although 58 PPP transactions have reached completion, a long tail of 200+ mid-sized deals remains in structuring. Lenders seek clearer risk-allocation frameworks, particularly where government guarantees are absent. Secondary-city airports and municipal wastewater schemes illustrate the bottleneck, as investors gravitate toward headline megaprojects with explicit state backing. Advisory firms specializing in bankable templates and revenue-sharing structures are filling a crucial gap. Without streamlined close processes, project start dates slide, marginally trimming the aggregated growth trajectory of the Saudi Arabia infrastructure construction market.
Segment Analysis
By Infrastructure Segment: Utilities Lead While Transportation Accelerates
Utilities commanded 69% of the Saudi Arabia infrastructure construction market share in 2024. Robust investment in grid reinforcement and water-desalination plants underpins this dominance, highlighted by the 2.5 GW BESS rollout that adds 500 MW per site and USD 1.8 billion in civil and electrical works. Desalination-linked renewables, district cooling and wastewater recycling projects collectively broaden spend in coastal provinces. Social infrastructure trails in value yet gains strategic weight as USD 69.3 billion flows into healthcare, including five new hospitals scheduled by 2025.
Transportation is the fastest-expanding slice of the Saudi Arabia infrastructure construction market, growing 5.77% annually through 2030. A USD 147 billion logistics strategy calls for 28,000 km of road enhancements, airport upgrades in secondary cities and exploration of hyper-loop corridors. The Haramain high-speed rail’s 450 km alignment showcases delivery momentum, carrying 25 million passengers in Q1 2025. Extraction-related infrastructure, though smaller, gains impetus from USD 2.5 trillion in mineral reserves; expanded haul roads, slurry pipelines and off-grid power facilities attract specialized EPC consortia.
Note: Segment shares of all individual segments available upon report purchase
Get Detailed Market Forecasts at the Most Granular Levels
Download PDF
By Construction Type: New Construction Dominates While Renovation Gains Momentum
New schemes held an 82% stake of the Saudi Arabia infrastructure construction market in 2024. Vision 2030’s rolling project register—approaching USD 1 trillion—anchors this share. Signature undertakings include NEOM’s mixed-use districts and the Red Sea luxury corridor, each relying on integrated water, energy and mobility networks. Contractors with in-house precast yards and drone-assisted progress monitoring secure schedule advantages, critical for giga-project timelines.
Renovation, at 18%, is expanding faster at a 5.56% CAGR. Adaptive-reuse programs such as King Fahd International Stadium’s overhaul illustrate a pivot toward asset-life extension. Retrofitting corporate headquarters for LEED Gold compliance—like SABIC’s Riyadh campus—requires solar façades, grey-water loops and smart-glass panels. As buildings approach mid-life, facility managers prioritize energy-efficiency upgrades, adding depth to the Saudi Arabia infrastructure construction market size for renovation specialists.
By Investment Source: Public Funding Predominates While Private Capital Accelerates
Public agencies underwrote 77% of the overall spend in 2024, bolstered by a USD 11 billion infrastructure allocation in the 2025 budget. Sovereign backing lowers early-stage risk, enabling large-scale procurement of transit systems, hospitals, and desalination complexes. Line-ministry PPP units team with the National Infrastructure Fund to crowd-in export credit and multilateral financing.
Private capital—23% of value—is scaling quickest at 6.18% annually, catalyzed by yield spreads of 9-13% versus developed-market infrastructure. The Saudi Arabia infrastructure construction industry now sees pension funds and insurers co-investing in brownfield water plants and student-housing concessions. Dedicated vehicles such as the new PIF-I Squared infrastructure fund deepen the pool, signaling a structural shift in risk sharing across the Saudi Arabia infrastructure construction market.
Note: Segment shares of all individual segments available upon report purchase
Get Detailed Market Forecasts at the Most Granular Levels
Download PDF
Saudi Arabia Construction Infrastructure Market Geography Analysis
Riyadh’s construction value is projected to rise at a 5.4% CAGR through 2030. Aggressive mixed-use zoning reforms, a one-stop e-permitting portal, and landlord-tenant law updates make the capital a priority destination for foreign contractors, basilinna.com. Major transit anchors such as the Riyadh Metro’s six-line network are reshaping commuting patterns, supporting large-scale residential infill. Green-space upgrades like King Salman Park integrate smart-irrigation and recycled-water lines, underscoring the city’s environmental pivot and enhancing the Saudi Arabia infrastructure construction market pipeline.
Regional Saudi Arabia is the new frontier for balanced growth, expanding 6.78% annually. Jubail, Yanbu, and Ras Al-Khair hold 40% of non-oil exports, driving demand for deep-water berths, cross-country freight rail, and feedstock-supply corridors. Mining investments under Ma’aden’s joint venture with Aramco are spawning infrastructure clusters in Al-Jouf and Tabuk, including off-grid solar plants and haul roads. A USD 182 million exploration-incentive scheme adds impetus, ensuring consistent project flow to EPC contractors.
Jeddah and the Dammam Metropolitan Area (DMA) maintain steady growth trajectories. Jeddah’s coastal logistics edge is reinforced by a USD 346.6 million Maersk hub that automates cold-chain and e-commerce handling.[3]OGN News – "Royal Commission for Jubail & Yanbu 2040 investment target" Construction on Jeddah Tower’s upper floors has restarted, intensifying demand for high-capacity concrete pumps and crane fleets. DMA’s diversification strategy leverages grid-scale solar additions to hit the national 50% renewables target by 2030. Aramco’s Jafurah gas-field third-phase compression project brings substantial gas-processing modules and pipeline loops to the Saudi Arabia infrastructure construction market, reinforcing contractor order books.
Competitive Landscape
The Saudi Arabia infrastructure construction market exhibits moderate concentration. State-backed giants—Saudi Binladin Group and El Seif Engineering—coexist with global EPC majors like Bechtel and AECOM and regional specialists such as Consolidated Contractors Company. Strategic partnerships dominate; ACWA Power’s USD 693 million acquisition of Engie desalination assets expanded its regional water capacity by 1.11 million m³/day. Technology leadership steers competition: Baker Hughes’ gas-compression package for Jafurah leverages proprietary isothermal-compression units that lift efficiency by 10%.
Emerging niche players cater to sustainability mandates. The NovusCrete Consortium promotes carbon-lighter pavement overlays, cutting life-cycle emissions up to 30%. SCG International’s 3D-printing demos achieve 70% schedule reduction on pilot villa shells, appealing to NEOM’s ambitious timeline. Localization continues, with Tier-1 contractors surpassing 45% Saudi workforce thresholds, aided by targeted vocational programs.
Financing capacity is another differentiator. I Squared Capital’s alliance with the Public Investment Fund seeds a dedicated regional infrastructure vehicle capable of underwriting multi-billion-dollar balance-sheet deals.[2]Public Investment Fund (PIF) – "new regional infrastructure fund with I Squared Capital" Access to long-dated capital allows participants to shoulder wider payment-cycle gaps common in PPP models. Overall, competition is shifting from pure price bids to value-added criteria such as carbon footprint, digital-twin integration, and lifecycle-O&M guarantees—elements increasingly embedded in tender evaluation matrices across the Saudi Arabia infrastructure construction market.
Saudi Arabia Infrastructure Construction Industry Leaders
-
ACWA Power
-
Aramco
-
Bechtel Corporation
-
Nesma & Partners
-
CRCC
- *Disclaimer: Major Players sorted in no particular order
Need More Details on Market Players and Competitors?
Download PDF
Recent Industry Developments
- May 2025: I Squared Capital and the Public Investment Fund signed an MoU to launch a Middle-East infrastructure fund, broadening institutional financing sources.
- May 2025: The White House announced a USD 600 billion investment commitment into Saudi projects, boosting foreign-capital inflows.
- April 2025: Saudi Arabia commenced a 2.5 GW grid-scale BESS roll-out valued at USD 1.8 billion.
- March 2025: AECOM was appointed to manage the King Fahd International Stadium retrofit
Research Methodology Framework and Report Scope
Market Definitions and Key Coverage
Our study defines Saudi Arabia's infrastructure sector as the yearly owner spend on new and active civil works across transportation corridors, utility grids (power, water, desalination, telecom backbones), social facilities (schools, hospitals, sports venues), and extraction-linked support assets, stated in constant 2024 USD.
Scope exclusion: upstream oil and gas drilling rigs, stand-alone interior fit-outs, and minor refurbishments sit outside this boundary.
Segmentation Overview
- By Infrastructure Segment
- Transportation Infrastructure
- Utilities Infrastructure
- Social Infrastructure
- Extraction Infrastructure
- By Construction Type
- New Construction
- Renovation
- By Investment Source
- Public
- Private
- By Key City
- Riyadh
- Jeddah
- DMA (Dammam metropolitan area)
- Rest of Saudi Arabia
Detailed Research Methodology and Data Validation
Primary Research
Mordor analysts interviewed project sponsors, EPC heads, municipal planners, and financiers in Riyadh, Jeddah, and Dammam, then ran follow-up surveys with utilities regulators. The conversations clarified escalation clauses, PPP risk sharing, and live pipeline values that desktop work rarely reveals.
Desk Research
We began by lining up public ledgers such as GASTAT gross-fixed-capital tables, Ministry of Finance capital budgets, Public Investment Fund disclosures, Vision 2030 dashboards, Mawani port statistics, and Saudi Contractors Authority tender logs; these frame national outlay flows. Customs shipment records, project EPC circulars, and reputable press sharpened unit-cost assumptions, while paid feeds from D&B Hoovers and Dow Jones Factiva filled financial blanks. The sources named are illustrative; many additional open records informed individual datapoints.
Market-Sizing & Forecasting
We anchor the base year through a top-down build of approved budgets and giga-project disclosures, and we use one selective bottom-up roll-up of supplier invoices plus city permit values to cross-check totals. Key drivers include public capital outlays, fresh PPP awards, cement shipments, imported construction steel, average route-kilometer costs, and contractor capacity; these feed a multivariate regression that extends the view to the forecast period. Gaps in invoice samples are bridged with median Gulf benchmarks before final checks.
Data Validation & Update Cycle
Outputs face variance tests against contractor backlog ratios and quarterly construction GDP. Two analysts review anomalies before a sector lead signs off. Reports refresh each year, with interim updates when material policy or project shifts emerge, and a last-mile validation precedes every release.
Why Our Saudi Arabia Infrastructure Sector Baseline Inspires Confidence
Published estimates often diverge because firms select different asset classes, price bases, and refresh cadences.
Mordor's coverage mirrors the Vision 2030 blueprint and updates exchange rates and commodity inputs every year, which steadies volatility and raises confidence.
Benchmark comparison
| Market Size | Anonymized source | Primary gap driver |
|---|---|---|
| USD 60.46 B | Mordor Intelligence | - |
| USD 36.54 B | Global Consultancy A | Focuses on roads and airports only; omits utilities and social assets |
| USD 93.60 B | Trade Journal B | Adds manufacturing parks and defense facilities beyond civil works |
| USD 104.76 B | Regional Consultancy C | Uses total construction spend and a static FX rate |
These contrasts show how Mordor's disciplined scope selection, live cost tracking, and annual recalibration deliver a balanced baseline that executives can rely on.
Need A Different Region or Segment?
Customize Now
Key Questions Answered in the Report
What is the current value of the Saudi Arabia infrastructure construction market?
The Saudi Arabia infrastructure construction market size was USD 60.46 billion in 2024 and is forecast to reach USD 81.65 billion by 2030.
Which segment leads the market in terms of spend?
Utilities hold the dominant 69% share, reflecting continued investment in power, water and grid storage assets.
How fast is transportation infrastructure growing?
Transportation assets are expanding at 5.77% CAGR through 2030 on the back of a USD 147 billion multimodal logistics plan
What role does private capital play in project financing?
Private investment represents 23% of total spend but is rising at 6.18% CAGR as PPP pipelines mature and new infrastructure funds launch
Which regions outside Riyadh are attracting accelerated growth?
Industrial hubs across the “Rest of Saudi Arabia” are growing 6.78% annually, led by Jubail, Yanbu and resource-rich northern provinces
What is the main risk facing contractors in the near term?
Rising steel and cement prices, driven by global supply constraints, are inflating overall project budgets by up to 7% in 2025
Page last updated on:
