Saudi Arabia Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Saudi Arabia Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Summary

GlobalData expects Saudi Arabia’s construction industry to remain strong in 2023, with growth of 4.5% in real terms projected this year, supported by improving economic conditions, and public and private sector investment in the construction of major development projects in the transportation, energy, and housing sectors, coupled with an improvement in tourism activity. The latest figures from the General Authority of Statistics (GaStat) show that the Saudi Arabian construction industry’s value add rose by 5.5% year on year (YoY) in Q1 2023, preceded by Y-o-Y growth of 4.8% in Q4 and 4.4% in Q3 2022, while the total gross fixed capital formation (GFCF) grew by 17.6% YoY in Q1 2023, following Y-o-Y growth of 20.6% in Q4 and 31.8% in Q3 2022.

Over the remainder of the forecast period, GlobalData expects Saudi Arabia’s construction industry to register an annual average growth rate of 5% between 2024 and 2027, supported by investments on ‘Giga projects’ that were launched as part of the Kingdom’s ‘Vision 2030’ economic diversification plan. Energy and utilities construction is expected to continue to expand, buoyed by the long-term goal of increasing the renewable energy capacity from 4.9GW in 2021 to 27.3GW by 2023 and 58.7GW by 2030. In May 2023, the Water and Electricity Regulatory Authority (WERA) announced that it had recently approved 106 energy service companies (ESCOs) to implement small solar energy projects across the country. In the first quarter of 2023, the Saudi’s Real Estate Development Fund signed finance agreements worth SAR13.7 billion ($3.64 billion) to boost the country’s housing market. Moreover, the government is working on a landmark law that will allow non-Saudi residents to own property in the kingdom.

This report provides detailed market analysis, information and insights into Saudi Arabia’s construction industry, including -

• Saudi Arabia’s construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Saudi Arabia’s construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Saudi Arabia. It provides -

• Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Saudi Arabia, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
• Assess market growth potential at a micro-level with over 600 time-series data forecasts.
• Understand the latest industry and market trends.
• Formulate and validate strategy using GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.