Construction Sector in Saudi Arabia Remains Strong

Saudi Arabia's construction sector is experiencing robust growth, with project awards reaching $148 billion in the first half of 2024, a 4.6% increase. This positive trend is expected to continue, projecting the sector's value to hit $191 billion by 2029, according to Knight Frank. This growth is fueled by the government's 'Vision 2030' strategy, which aims to deliver over a million homes, numerous hotel keys, and significant retail and office space by the end of the decade.

The Kingdom's construction boom is evident in the substantial investments in real estate and infrastructure projects, with approximately $1.3 trillion planned under Vision 2030. Riyadh is the epicenter of this activity, accounting for 63% of total project awards since 2020, totaling $135.2 billion. The capital's development plan includes extensive office, retail, and residential spaces, along with major transport projects like the Riyadh Metro and bus rapid transit systems.

"Giga-projects" are a major driver of construction activity, with developments like the $50 billion "New Murabba" project in Riyadh and a $685.5 billion real estate plan in Western Saudi Arabia. These projects are designed on an unprecedented scale, promising to deliver hundreds of thousands of homes, hotel rooms, and substantial commercial spaces. The scale and ambition of these projects highlight the Kingdom's commitment to its Vision 2030 goals.