Jeddah Construction Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 2.49 Billion |
| Market Size (2029) | USD 3.5 Billion |
| CAGR (2024 - 2029) | 5.83 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Jeddah Construction Market Analysis
The Jeddah Construction Market size is estimated at USD 2.49 billion in 2024, and is expected to reach USD 3.5 billion by 2029, growing at a CAGR of 5.83% during the forecast period (2024-2029).
• Jeddah is one of the major cities in Saudi Arabia and has experienced significant growth and development in recent years. The construction sector in Jeddah plays a crucial role in shaping the city's infrastructure and supporting its economic development.
• Jeddah is the largest city in Makkah Province, the largest city in Hejaz, the second largest city in Saudi Arabia, and the ninth largest city in the Middle East, with a population of about 3,751,722 as of 2022. On the Red Sea, Jeddah Islamic Port is the thirty-sixth largest seaport in the world and the second-largest and second-busiest seaport in the Middle East (after Dubai's Port of Jebel Ali).
• The strategic location of Jeddah as a port city makes it a hub for industrial activity. Investing in industrial real estate, such as factories or warehouses, can be profitable.
• 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.
• The construction sector accounted for the most significant number of new contracts, with a total value of USD 34.3 billion in 2022. In particular, an increase in the number of contracts awarded in Saudi Arabia's construction sector has contributed to the growth of the construction sector.
• Several megaprojects are taking shape in Makkah, representing a significant part of the development boom. Jeddah has 33 projects with 7,148 rooms, and Al Wajh, which has 12 projects with 4,868 keys, is fourth on the list.
Jeddah Construction Market Trends
Increase in Commercial Construction is dominating the Market
Saudi Arabia’s second city is undergoing a significant transformation as Vision 2030 giga-projects change the face of many districts, including Marafy and Alarous by Roshn, Sadayem by the National Housing Project, and – controversially – Jeddah Central.
The Jeddah Central, a company owned by the Public Investment Fund, wants to make south Jeddah look entirely different. Six districts are envisaged, including the sports stadium, a man-built canal, an oceanarium and coral farm, a marina, a museum, or an opera house, to be filled with luxury tourism and accommodation.
Two museums are planned – a renovation of the old Bab Al-Bunt Museum by Jeddah port, to be known as the Red Sea Museum and housing works of art, and Jeddah Central Museum, inside an old desalination plant, intended as an industrial heritage site.
Jawharat Jeddah Mall will be one of the modern centers in the city of Jeddah, which aims to establish a diversified center as a new and integrated destination for entertainment and shopping with the latest international brands. Its strategic location, its proximity to the main areas of the city and the proposed land area of 170,746 square meters, a GLA of 87,145 square meters, an entertainment area of 17,475 square meters, and more than 200 stores by Cenomi Centres are distinguished.
Increase of New Port Development Leading the Market
Jeddah Islamic Port handled 465,348 TEU in April 2023, compared to 372,064 TEU in April 2022, according to the data from the Saudi Ports Authority (Mawani). From 214,686 TEU in April last year to 261,543 TEU in 2023, transhipments and restores increased by 21.83%.
In April 2023, total cargo volumes increased by 19.33% to 5,261,883 tonnes, including 128,714 tonnes of general freight, 305,038 tonnes of dry bulk, and 34,109 tonnes of liquid consignments. In April, JIP recorded 324 calls for service, an increase of 13.29% compared to 286 calls for service in the same month last year. Over the same period, passenger traffic increased by 334.77% to 40,947. Automotive throughput rose 72.08% to 54,511 units.
A new shipping service has been launched at the Jeddah Islamic Port in Saudi Arabia, allowing it to reach eight other countries. In partnership with the Red Sea Gateway Terminal Company and France's CMA CGM, the Saudi Ports Authority, known as Mawani, has launched the Turkey Libya Express service. The new Jeddah to Shanghai, Ningbo, and Nansha routes in China also connect with Singapore. The new service, with a capacity of more than 30,000 containers, will employ nine ships, increasing the position of Jeddah Islamic Port as the first reshipment hub in the Red Sea.
In December 2023, In Saudi Arabia, EDECS announced that it had been awarded significant infrastructure and road works for the Jeddah South Container Terminal 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.
Jeddah Construction Industry Overview
With the presence of many international players, there is a fragmented and competitive market for building. In the forecast period, the Jeddah construction market presents an opportunity for growth and is expected to fuel further competition. The construction market in the Arab world has an apparent degree of consolidation, with several players having a substantial market share. Some of the major players include Bechtel, CB&I LLC, Fluor Corp., Tekfen Construction and Installation Co. Inc., Gilbane Building Co.
Jeddah Construction Market Leaders
Bechtel
CB&I LLC
Fluor Corp.
Tekfen Construction and Installation Co. Inc.
Gilbane Building Co.
*Disclaimer: Major Players sorted in no particular order
Jeddah Construction Market News
• September 2023 - After a half-decade-long pause, Saudi Arabia’s record-breaking Jeddah Tower is once again being built up. The tower will be more than 1,000 meters [over 3,280 feet].
• In October 2023, Dr. Sulaiman Al Habib Medical Services Group Co has authorized a project to construct Tabuk Hospital. It is expected that construction work on the project will be completed in 2027.
Jeddah 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 AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Green And Sustainable Buildings Initiatives
4.3 Market Restraints
4.3.1 Decliing Crude Oil Prices
4.4 Market Opportunities
4.4.1 Government Initiatives
4.5 Value Chain / Supply Chain Analysis
4.6 Impact of Government Regulations and Initiatives on the Industry
4.7 Review and Commentary on the Extent of Government Infrastructure Development Schemes
4.8 Porter's Five Force Analysis
4.8.1 Threat of New Entrants
4.8.2 Bargaining Power of Buyers/Consumers
4.8.3 Bargaining Power of Suppliers
4.8.4 Threat of Substitute Products
4.8.5 Intensity of Competitive Rivalry
4.9 Impact of covid-19 on the market
5. MARKET SEGMENTATION
5.1 By Sector
5.1.1 Residential
5.1.2 Commercial
5.1.3 Industrial
5.1.4 Infrastructure (Transportation)
5.1.5 Energy and Utility construction
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Bechtel
6.2.2 Al Latifa Trading and Contracting
6.2.3 CB&I LLC
6.2.4 Al-Rashid Trading & Contracting Company
6.2.5 Fluor Corp.
6.2.6 Afras Trading and Contracting Company
6.2.7 Tekfen Construction and Installation Co. Inc.
6.2.8 AL Jazirah Engineers & Consultants
6.2.9 Gilbane Building Co.
6.2.10 Jacobs*
- *List Not Exhaustive
6.3 Other Companies
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Jeddah 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 Jeddah 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, and COVID-19 impact, is covered in the report.
The Jeddah Construction Market is segmented by sector (residential, commercial, industrial, infrastructure (transportation), and energy and utility construction). The report provides market size and forecasts for the Jeddah Construction Market regarding value (USD) for all the above-mentioned segments.
| By Sector | |
| Residential | |
| Commercial | |
| Industrial | |
| Infrastructure (Transportation) | |
| Energy and Utility construction |
Jeddah Construction Market Research FAQs
How big is the Jeddah Construction Market?
The Jeddah Construction Market size is expected to reach USD 2.49 billion in 2024 and grow at a CAGR of 5.83% to reach USD 3.5 billion by 2029.
What is the current Jeddah Construction Market size?
In 2024, the Jeddah Construction Market size is expected to reach USD 2.49 billion.
Who are the key players in Jeddah Construction Market?
Bechtel, CB&I LLC, Fluor Corp., Tekfen Construction and Installation Co. Inc. and Gilbane Building Co. are the major companies operating in the Jeddah Construction Market.
What years does this Jeddah Construction Market cover, and what was the market size in 2023?
In 2023, the Jeddah Construction Market size was estimated at USD 2.34 billion. The report covers the Jeddah Construction Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Jeddah Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Jeddah Construction Industry Report
Statistics for the 2024 Jeddah Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Jeddah 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.
