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Saudi Arabia’s construction sector is witnessing unprecedented growth, with a projected output value of $181.5bn by 2028, making it the world’s largest construction market. This boom is driven by the government’s ambitious Vision 2030, which aims to transform the Kingdom into a global hub for tourism, commerce, and trade.

The Construction Landscape

According to Knight Frank’s Saudi Construction Landscape Review H1 2024, the Kingdom’s construction output value for all sectors is forecast to reach $181.5bn by 2028. The residential sector dominates the construction output value, accounting for 31% ($43.5bn) of the total output value in 2023 and projected to reach $56.9bn by 2028.

The Energy and Utilities sector follows closely in second place, with a value of $35.1bn, which is forecast to increase to $46.5bn by 2028. The transportation sector accounts for 33% of the total contract award value, highlighting the significant investment in bolstering the capital’s transportation infrastructure.

Giga Projects: Transforming the Kingdom’s Urban Landscape

The emergence of new super-cities, mainly Giga projects around the Kingdom, is transforming the urban landscape. With a value of over SR1.25tn ($340.3bn) launched but not yet delivered, Giga Projects are undoubtedly driving the Kingdom’s growth. The planned volume of residential units has risen to 660,000 units, an increase of 30% in the last 12 months.

The Future of Saudi Arabia’s Construction Sector

The construction sector is expected to continue booming, driven by the government’s commitment to Vision 2030. With a projected population growth to 40 million and accommodating 150 million visitors by 2030, the demand for residential, commercial, and retail spaces will continue to increase. The Western region of Saudi Arabia will remain a focus of development, with plans valued at $692bn, accounting for 55% of the total $1.25tn development plan.

In conclusion, Saudi Arabia’s construction sector is poised for exponential growth, driven by the government’s ambitious Vision 2030. With a projected output value of $181.5bn by 2028, the Kingdom is set to become the world’s largest construction market.