Dublin, April 10, 2025 (GLOBE NEWSWIRE) -- The "Saudi Arabia Construction Industry Databook - Market Size & Forecast by Value & Volume, 40+ Market Segments Across Residential, Commercial, Industrial, Institutional, Infrastructure Construction, City Level Construction by Value and Construction Cost Structure, Q1 2025 Update" report has been added to ResearchAndMarkets.com's offering.
The construction market in Saudi Arabia is expected to grow by 6.2% on annual basis to reach SAR 232.14 billion in 2025.
Saudi Arabia's construction market experienced robust growth during 2020-2024, achieving a CAGR of 9.4%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 4.9% during 2025-2029. By the end of 2029, the construction sector is projected to expand from its 2024 value of SAR 218.58 billion to approximately SAR 297.19 billion.
This report provides a detailed data-centric analysis of the construction sector in Saudi Arabia, offering a comprehensive view of market opportunities in the building and infrastructure construction industry at the country level. With over 100+ KPIs covering growth dynamics in building and infrastructure construction, construction cost structure analysis, and analysis by key cities in the country, this databook provides a wealth of data-centric analysis with charts and tables, ensuring stakeholders are fully informed.
It offers a comprehensive analysis of market dynamics in the construction sector through a range of KPIs such as value, volume, and number of units. The building construction covers detailed segmentation over 30+ segments in residential, commercial, industrial, and institutional sectors.
Sectoral Deep Dive
Residential Construction
- High demand driven by Vision 2030's goal of 70% homeownership by 2030
- Major projects led by ROSHN and National Housing Company, including SAR 350 billion in integrated community developments
- Growth supported by Sakani program subsidies and land reforms
- Rising costs, skilled labor shortages, and urban focus in Riyadh dominate strategic planning
Commercial Construction
- Massive investments in tourism, hospitality, and office spaces, aligned with the Regional HQ Program and Vision 2030
- Projects like New Murabba, Qiddiya, and Diriyah Gate are reshaping the urban-commercial landscape
- Office demand surging (+31% rent growth YoY in Riyadh), driving premium development
- Risks include execution delays, cost inflation, and localized oversupply
Institutional Construction
- Government spending exceeding SAR 460 billion in 2024–2025 for healthcare and education infrastructure
- Growth in public-private school and hospital projects, with notable PPP waves underway
- Key builds include King Salman Park and major university expansions
- Sector increasingly adopting modular construction, 4D BIM, and smart infrastructure systems
Industrial Construction
- Fueled by the National Industrial Strategy, targeting 36,000 factories by 2035
- Gigantic projects include Aramco-Total’s Amiral Complex and NEOM's Octagon Hub
- Mining, EV manufacturing, and green hydrogen plants present significant opportunities
- Local content mandates and Saudization policies drive workforce localization and cost-efficiency
Infrastructure Construction
- Core to Vision 2030 with multi-billion dollar investments in transport, energy, water, and digital infrastructure
- Strong PPP momentum supported by PIF, NIDLP, and the National Infrastructure Fund
- Flagship initiatives: National Transport Strategy, Riyadh Metro, and Red Sea utility systems
- Key success factors include tech adoption, risk management, and local execution capacity
Macroeconomic & Policy Environment
- Robust non-oil GDP growth, averaging 4%+, supports construction demand
- Inflationary pressures and rising global interest rates impact material and financing costs
- Strategic government initiatives—Vision 2030, NIS, NIDLP, and the Green Initiative—anchor construction growth
- Expanding foreign investment frameworks, including 100% real estate ownership and premium residency visas
What’s Inside the Report?
- 10-Year Market Forecast (2019–2028) across all major sectors
- Construction market size by value, volume, and number of units
- City-level analysis across top-performing urban centers
- Green building and sustainability coverage
- Construction cost structure analysis
- Key macroeconomic indicators shaping the industry
- Public-private partnership (PPP) trends and strategic outlook
For more information about this report visit https://www.researchandmarkets.com/r/ozmnxo
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