Saudi Arabia Construction Market Size, Trend Analysis by Sector, Competitive Landscape 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 grew by 4% year on year (YoY) in Q2 2023, preceded by Y-o-Y growth rates of 5.5% in Q1 2023 and 4.8% in Q4 2022. Additionally, the total gross fixed capital formation (GFCF) grew by 2.4% YoY in Q2 2023, preceded by Y-o-Y growth of 17.6% in Q1 2023 and 20.6% in Q4 2022.
Over the remainder of the forecast period, between 2024 and 2027, the Saudi Arabian construction industry is projected to register an annual average growth rate of 5% in real terms, supported by investments and megaprojects under the framework of Saudi Vision 2030, notably the NEOM project with a total value of SAR1.9 trillion ($500 billion). The NEOM development is in the north-western region of Saudi Arabia and encompasses the creation of smart towns and cities, ports and enterprise areas, research centres, sports and entertainment venues, and tourist attractions. This expansive development will cover an extensive area of 26,500km2 and will be divided into various zones, including industrial and logistics areas. Other sectors driving growth including data centers, logistics zones, renewable energy, housing, and tourism projects as part of the Kingdom’s ‘Vision 2030’ economic diversification plan. In August 2023, Saudi Entertainment Ventures (SEVEN), a subsidiary of the Public Investment Fund, unveiled plans to construct a new entertainment destination in Almadinah with an expected investment of SAR1.3 billion ($346 million). The project will be developed on an area of 100,000m2, with a total built-up area of 84,000m2. This project aligns with the government's goal of attracting at least 100 million tourists annually by 2030. Moreover, an agreement was signed between the Southern Province Cement Company, based in Saudi Arabia and Sinoma International Engineering Company in May 2023 to construct a new production line with a total capacity of 5,000 tons per day.
The 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.
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
- 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.
- 1 Executive Summary
- 2 Construction Industry: At-a-Glance
- 3 Context
- 3.1 Economic Performance
- 3.2 Political Environment and Policy
- 3.3 Demographics
- 3.4 Risk Profile
- 4 Construction Outlook
- 4.1 All Construction
- Outlook
- Latest news and developments
- Construction Projects Momentum Index
- 4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.7 Residential Construction
- Outlook
- Project analytics
- Latest news and developments
- 5 Key Industry Participants
- 5.1 Contractors
- 5.2 Consultants
- 6 Construction Market Data
- 7 Appendix
- 7.1 What is this Report About?
- 7.2 Definitions
- 7.3 CRI Methodology
- 8 About GlobalData
- 9 Contact Us
- List of Tables
- Table 1: Construction Industry Key Data
- Table 2: Saudi Arabia, Key Economic Indicators
- Table 3: Saudi Arabia, Commercial Construction Output by Project Type (Real % Change), 2018–27
- Table 4: Saudi Arabia, Top Commercial Construction Projects by Value
- Table 5: Saudi Arabia, Industrial Construction Output by Project Type (Real % Change), 2018–27
- Table 6: Saudi Arabia, Top Industrial Construction Projects by Value
- Table 7: Saudi Arabia, Infrastructure Construction Output by Project Type (Real % Change), 2018–27
- Table 8: Saudi Arabia, Top Infrastructure Construction Projects by Value
- Table 9: Saudi Arabia, Energy and Utilities Construction Output by Project Type (Real % Change), 2018–27
- Table 10: Saudi Arabia, Top Energy and Utilities Construction Projects by Value
- Table 11: Saudi Arabia, Institutional Construction Output by Project Type (Real % Change), 2018–27
- Table 12: Saudi Arabia, Top Institutional Construction Projects by Value
- Table 13: Saudi Arabia, Residential Construction Output by Project Type (Real % Change), 2018–27
- Table 14: Saudi Arabia, Top Residential Construction Projects by Value
- Table 15: Saudi Arabia, Key Contractors
- Table 16: Saudi Arabia, Key Consultants
- Table 17: Saudi Arabia, Construction Output Value (Real, $ Million)
- Table 18: Saudi Arabia, Construction Output Value (Nominal, SAR Million)
- Table 19: GlobalData Construction Market Definitions
- Table 20: Risk Dimensions
- Table 21: Ratings, Scores and Definitions
- List of Figures
- Figure 1: Middle East and North Africa, Construction Output (Real % Change), 2021–27
- Figure 2: Saudi Arabia, Construction Output by Sector (Real % Change), 2021–23 and 2024–27
- Figure 3: Saudi Arabia, Risk Summary
- Figure 4: Saudi Arabia, Risk Regional Comparison
- Figure 5: Saudi Arabia, Construction Output Value (Real, $ Million, 2017 Prices and Exchange Rate), 2018–27
- Figure 6: Saudi Arabia, Construction Output Value, by Sector (Real, $ Million), 2018–27
- Figure 7: Saudi Arabia, Construction Value Add (SAR Million, 2010 Constant Prices)
- Figure 8: Saudi Arabia, Gross Fixed Capital Formation in Construction (SAR Million, 2010 Constant Prices)
- Figure 9: Saudi Arabia, Real Estate Loans from Banks (SAR Million)
- Figure 10: Saudi Arabia, Real Estate Price Index (2014=100)
- Figure 11: Saudi Arabia, Construction Projects Momentum Index
- Figure 12: Middle East and North Africa, Construction Projects Momentum Index
- Figure 13: Saudi Arabia, Commercial Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 14: Saudi Arabia, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 15: Saudi Arabia, Wholesale and Retail Trade, Restaurants and Hotels Value Add (SAR Million, 2010 Constant Prices)
- Figure 16: Saudi Arabia, Commercial Real Estate Price Index (2014=100)
- Figure 17: Saudi Arabia, Industrial Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 18: Saudi Arabia, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 19: Saudi Arabia, Manufacturing Value Add (SAR Million, 2010 Constant Prices)
- Figure 20: Saudi Arabia, Mining and Quarrying Value Add (SAR Million, 2010 Constant Prices)
- Figure 21: Saudi Arabia, Non-Oil Sector's Value Add (SAR Million, 2010 Constant Prices)
- Figure 22: Saudi Arabia, Total Credit Facilities Provided to Micro, Small, and Medium Enterprises (SAR Million)
- Figure 23: Saudi Arabia, Total Merchandise Export (SAR Million)
- Figure 24: Saudi Arabia, Industrial, Manufacturing, and Mining and Quarrying Production Index (2010=100)
- Figure 25: Saudi Arabia, Infrastructure Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 26: Saudi Arabia, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 27: Saudi Arabia, Transport, Storage and Communication Value Add (SAR Million, 2010 Constant Prices)
- Figure 28: Saudi Arabia, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 29: Saudi Arabia, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 30: Saudi Arabia, Electricity, Gas, and Water Services Value Add (SAR Million, 2010 Constant Prices)
- Figure 31: Saudi Arabia, Oil Sector’s Value Add (SAR Million, 2010 Constant Prices))
- Figure 32: Saudi Arabia, Institutional Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 33: Saudi Arabia, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 34: Saudi Arabia, Residential Construction Output by Project Type (Real, $ Million), 2018–27
- Figure 35: Saudi Arabia, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 36: Saudi Arabia, Real Estate Value Add (SAR Million, 2010 Constant Prices)
- Figure 37: Saudi Arabia, Saudi Arabia, Residential Real Estate Price Index (2014=100)
- Figure 38: Saudi Arabia, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 39: Saudi Arabia, Headquarters of Key Consultants (% of Total Project Pipeline)
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