Saudi Arabia's construction industry is booming at a phenomenal rate, making it a key player in the global construction market. According to the latest third-party agency analysis, Saudi Arabia's construction output has reached $141.5 billion across residential, infrastructure, industrial, energy & utilities, and commercial sectors. This figure is expected to grow to $181.5 billion by the end of 2028, making Saudi Arabia one of the largest construction markets in the world.

Saudi Arabia's construction industry is growing rapidly on an unprecedented scale, largely due to the driving force of its Vision 2030. According to the vision, by 2030, Saudi Arabia plans to build more than 660,000 new homes, 320,000 new hotel rooms, as well as more than 5.3 million square meters of retail space and 6.1 million square meters of new office space. These ambitious plans aim to drive diversification and sustainable growth in the Saudi economy.

Internet

Since the launch of the National Transformation Plan in 2016, Saudi Arabia's total budget on real estate and infrastructure projects has exceeded $1.25 trillion. These investments have not only fueled growth in the construction sector, but have also created a large number of jobs and boosted related industries. Currently, Riyadh, the main market for construction contracts, accounts for 38% of the total value of production, amounting to about $54 billion. This is followed by Makkah and Tabuk at $28.7 billion and $28.5 billion respectively, demonstrating the important role of these cities in the Saudi construction boom.

In terms of sectoral distribution, residential construction is the dominant sector in Saudi Arabia in terms of construction output, which is expected to account for 31% of the total output in 2023, or $43.5 billion. This is expected to grow further to $56.9 billion by 2028 as new residential projects increase and demand for existing homes is met. This is followed by the energy and utilities sector, which currently totals $35.1 billion and is projected to increase to $46.5 billion by 2028, reflecting Saudi Arabia's continued investment and expansion plans in energy infrastructure and public services.