Saudi Arabia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market France, 2023-2027

Saudi Arabia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market France, 2023-2027

Summary

GlobalData expects the construction industry in Saudi Arabia to grow by 4.6% in 2024, before recording an average annual growth rate of 5.1% from 2025 to 2027, supported by progress in major projects and the government’s focus on economic diversification to reduce the Kingdom’s reliance on oil revenues. As part of the Kingdom’s 2024 Budget approved in December 2023, the government increased its expenditure by 12.3% from SAR1.1 trillion ($297.1 billion) in 2023 to SAR1.3 trillion ($333.6 billion) in 2024. Of the total 2024 Budget, SAR189 billion ($50.4 billion) is allocated towards capital expenditure. Rising foreign direct investment (FDI) will also provide a boost to the industry’s output over the coming years. According to Saudi Arabia's Ministry of Investment, the number of investment licenses granted in the Kingdom rose by 60.4% year on year (YoY) in the first half of 2023, to 3,456. As part of the National Investment Strategy (NIS), the government aims to improve the investment climate and increase net FDI flows.

The Saudi Arabian construction industry’s growth over the forecast period will also be supported by investments in transport, renewable energy, tourism, industrial and housing projects. Key projects under the framework of Saudi Vision 2030 include 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. In September 2023, the Ministry of Industry and Mineral Resources named the state-owned mining company Saudi Arabian Mining Company (Maaden) as the preferred bidder for two exploration licenses for Muhaddad (which has possible deposits of copper, zinc, lead and gold) and Ar Ridaniyah (with possible deposits of zinc and silver) sites. Previously, in April 2023, the government had released a list of 13 local and foreign companies that had qualified to bid for the exploration sites of Muhaddad and Ar Ridaniyah.

The report provides detailed market analysis, information and insights into the Saudi Arabian construction industry, including -

• The Saudi Arabian 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 the Saudi Arabian 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.