The construction market in Saudi Arabia is flourishing. It reached a valuation of $120.4 billion in the year 2021. Over the forecast period from 2023 to 2026, the market is projected to achieve an annual average growth rate (AAGR) of more than 4%. Sounds amazing, right? This is driven by investments in different sectors including housing, transport, renewable energy, and tourism projects. These investments are part of the Vision 2030 project and are expected to support the industry’s growth.

In a nutshell, the outlook for the construction industry in Saudi Arabia is positive, with continued investment and support from the government, as well as improving economic conditions, driving growth in the sector.

Let’s discover what the Government has set for Saudi Arabia’s Construction Market

In 2022, the Saudi Arabian government has allocated SAR955 billion ($254.4 billion) for various sectors, including SAR42 billion ($11.2 billion) for transport infrastructure, SAR32 billion ($8.5 billion) for the general administration sector, and SAR54 billion ($4.4 billion) for the economic resources sector.

The Ministry of Energy has also reported that spending on power and renewable energy projects is expected to reach SAR1.1 trillion ($293.3 billion) by 2030. From this, SAR430 billion ($114.7 billion) will be invested in power transmission projects, while SAR380 billion ($101.3 billion) and SAR142 billion ($37.9 billion) will be invested respectively in renewable energy and energy distribution projects.

Furthermore, the SAR200 billion ($53.3 billion) National Infrastructure Fund, launched in October 2021, will also support the growth of the construction industry in Saudi Arabia during the forecast period. The fund will invest in various infrastructure projects, including water, transport, energy, education, health, and digital infrastructure, until 2030.

The primary domains in the Saudi Arabia construction market are- commercial construction, infrastructure construction, industrial construction, institutional construction, energy & utility construction, and residential construction.

The commercial construction sector is expected to grow in the near future due to the work on large projects and an increase in investments in the leisure and hospitality markets. This means that more buildings, such as offices, hotels, and restaurants, will be built to meet the demand for these services.

The construction of roads, railways, and airports will receive funding from both the government and private sectors, which will help the infrastructure construction sector to grow during the predicted period. Additionally, the sector will benefit from megaprojects that are currently in progress or planned for the future.

Moreover, the government’s emphasis on renewable energy infrastructure will boost the sector’s output in the coming years. Investments in the oil and gas industry will also play a part in this growth.

Bottom Line

If you’re considering investing in Saudi Arabia’s construction market, using big data can be extremely beneficial for the construction market analysis. PROJECT INTEL is a data analysis platform for sales leads, precise market analysis, market forecasting, and more for the GCC construction market.

By utilizing PROJECT INTEL, you can track data on various construction projects and create business opportunities. With access to over 4,429 projects worth an estimated $786 billion in Saudi Arabia, our advanced data-based platform is an invaluable resource.

Our platform makes the process of construction development analysis easier by categorizing projects by sector and sub-sector. You can also analyze the mega-project pipeline by the development stage and find details on leading contractors and consultants.

Sign up for a free trial of PROJECT INTEL today, or visit our website to learn more about our platform.