Dublin, June 03, 2025 (GLOBE NEWSWIRE) -- The "Saudi Arabia Construction Market, By Region, Competition, Forecast & Opportunities, 2020-2030F" has been added to ResearchAndMarkets.com's offering.
The Saudi Arabia Construction Market was valued at USD 104.76 Billion in 2024, and is expected to reach USD 174.37 Billion by 2030, rising at a CAGR of 8.70%
The market is undergoing a transformative phase, driven by the strategic objectives of the Vision 2030 initiative, which aims to diversify the nation's economy and reduce its reliance on oil revenues. Central to this vision are mega-infrastructure projects such as NEOM, Qiddiya, and the Riyadh Metro, which underscore a national shift toward smart cities, sustainable urban environments, and technologically advanced public spaces.
These developments reflect a broader focus on economic modernization and innovation. In parallel, Public-Private Partnerships (PPPs) and privatization initiatives are fostering private sector involvement in infrastructure expansion. Despite regulatory and labor-related challenges, the market continues to evolve with a strong emphasis on digital construction technologies, modular techniques, and sustainable building practices. As the Kingdom redefines its economic landscape, the construction sector remains a cornerstone of national development, driving forward progress through ambitious, large-scale investments, and global collaborations.
Key Market Drivers: Vision 2030 and Economic Diversification
A key catalyst propelling the Saudi Arabia Construction Market is the Vision 2030 agenda, a comprehensive national strategy to reduce dependence on oil and develop non-oil sectors. This initiative, introduced by Crown Prince Mohammed bin Salman, has led to increased investments in infrastructure, urban development, and emerging industries. With over SAR 12 trillion (~USD 3.2 trillion) planned investments by 2030, Vision 2030 emphasizes large-scale construction of smart cities, economic zones, and integrated transport systems.
Projects such as NEOM and Qiddiya illustrate the strategy's ambition, aiming to position Saudi Arabia as a global hub for innovation, tourism, and entertainment. These developments significantly boost demand across residential, commercial, and industrial construction segments. As a result, the construction sector is playing a pivotal role in generating employment, attracting foreign investment, and enabling the Kingdom's transition to a more diversified and sustainable economic model.
Key Market Challenges: Regulatory Complexity and Administrative Hurdles
The Saudi construction sector faces notable challenges arising from complex regulatory processes and administrative bottlenecks. While Vision 2030 has created a favorable growth environment, inconsistencies in regulatory frameworks continue to impact project execution. Construction activities often require navigating overlapping jurisdictions and compliance with diverse regulatory standards across environmental, zoning, and safety dimensions. This fragmentation can lead to delays in obtaining permits and approvals, affecting timelines and increasing project costs.
Additionally, the bureaucratic burden involved in licensing and documentation creates inefficiencies that hamper responsiveness to evolving market demands. Addressing these challenges through regulatory simplification, improved transparency, and streamlined approval systems will be essential to fostering a more dynamic and investment-friendly construction environment.
Key Market Trends: Mega-Projects Driving Transformation
A defining trend in the Saudi Arabia Construction Market is the rise of mega-projects that are reshaping the nation's economic and physical landscape. Anchored in Vision 2030, projects such as NEOM, Qiddiya, and the Red Sea Project represent a strategic pivot toward diversified economic development and global leadership in technology and tourism. NEOM, with an estimated investment of USD 500 billion, aspires to become a model for future cities with a focus on sustainability and digital innovation.
Qiddiya aims to be a world-class entertainment and sports destination, while the Red Sea Project targets eco-tourism and coastal development. These large-scale initiatives not only stimulate ongoing demand for construction materials and skilled labor but also set new benchmarks in urban design and sustainable development. By integrating cutting-edge technologies, environmental stewardship, and ambitious architectural vision, these projects are redefining what is possible in modern construction and positioning Saudi Arabia as a key player in global infrastructure development.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 88 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value (USD) in 2024 | $104.76 Billion |
| Forecasted Market Value (USD) by 2030 | $174.37 Billion |
| Compound Annual Growth Rate | 8.7% |
| Regions Covered | Saudi Arabia |
Report Scope
Key Market Players
- Kabbani Construction Group
- Almabani General Contractors
- AlKifah Contracting Company
- Nesma & Partners Contracting Company Ltd.
- AL-AYUNI Company
- Construction & Planning Co. Ltd.
- Contracting & Construction Enterprises Ltd.
- Binladen Group Global Holding Company
- Al-Rashid Trading & Contracting Co.
- Umm Al Qura For Development & Construction Company
Saudi Arabia Construction Market, By Sector:
Commercial
- Corporate Offices
- Hospitality
- Healthcare & Medical Facilities
- Educational Institutions
- Others
Industrial
- Oil & Gas
- Chemical & Petrochemical
- Food & Beverage
- Pharmaceutical
- Others
Infrastructure
- Government Buildings
- Cultural and Entertainment Venues
- Transportation Hubs
- Others
Residential
- Apartments
- Villas
- Traditional Houses
- Others
Saudi Arabia Construction Market, By End-User:
- Private
- Public
Saudi Arabia Construction Market, By Construction Type:
- New Construction
- Renovation
- Repair & Maintenance
Saudi Arabia Construction Market, By Region:
- Riyadh
- Makkah
- Madinah
- Dammam
- Jeddah
- Tabuk
- Eastern Province
For more information about this report visit https://www.researchandmarkets.com/r/b98q6k
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