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Construction in Saudi Arabia - Key Trends and Opportunities to 2025 (Q4 2021)

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    Report

  • 51 Pages
  • December 2021
  • Region: Saudi Arabia
  • GlobalData
  • ID: 5550166
1h Free Analyst Time
1h Free Analyst Time

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The publisher expects the construction industry in Saudi Arabia to expand by 1.5% in real terms in 2021 - marginally down from a previous projection of 2.9% growth. This downward revision is attributed to the weaker-than-expected performance in Q3 2021 and continued weakness in the commercial sector, due to weak investor and consumer confidence amid uncertainty over the course of the pandemic. According to the General Authority for Statistics (GaStat), the industry’s value add grew marginally by 0.7% year on year (YoY) in Q3 2021, preceded by Y-o-Y growth rates of 1% in Q2 2021 and 2.7% in Q1 2021.

The industry is expected to register an annual average growth of 4.2% between 2022-2025, supported by the government’s efforts to develop transport and energy infrastructure. To become a global hub for renewable energy (RE) and RE technologies over the next 10 years, in April 2021 the Crown Prince of Saudi Arabia Muhammad Bin Salman launched construction on the Sakaka Solar Photovoltaic (PV) project, which is a 300MW solar PV project located in the city of Sakaka. Along with this, the Crown Prince announced the signing of Power Purchase Agreements (PPAs) for seven new solar power projects in various regions across the Kingdom.

In mid-December 2021, the government announced a SAR955 billion (US$254.4 billion) budget for 2022; this includes an allocation of SAR42 billion (US$11.2 billion) for transport infrastructure, SAR32 billion (US$8.5 billion) for the general administration sector and SAR54 billion (US$4.4 billion) for the economic resources sector. The government plans to inject SAR27 trillion (US$7.2 trillion) into the economy until 2030. Of this, SAR10 trillion (US$2.7 trillion) will go to government spending through the budget over the next 10 years, while the SAR17 trillion (US$4.5 trillion) will be divided into SAR3 trillion (US$799 billion) for the Public Investment Fund (PIF), SAR4 trillion (US$1 trillion) for local and international companies, SAR5 trillion (US$1.3 trillion) for the Shareek program and another SAR5 trillion (US$1.3 trillion) for private consumption. In addition to this, the government also announced a new ‘National Investment Strategy’ in October 2021, which aims to attract Foreign Direct Investment (FDI) of more than SAR399 billion (US$106.3 billion) annually by 2030 and increase annual domestic investment to SAR1.7 trillion (US$552.8 trillion) by that year.

Over the forecast period, the construction industry’s output will also be supported by the huge pipeline of projects such as Neom (a proposed gigacity on the Egyptian-Jordanian border), the Red Sea project, AMAALA (a unique luxury sea resort destination which includes three super-luxury sea resorts) and Qiddiya (a tourism megaproject in Riyadh). In March 2021, Crown Prince Mohammed bin Salman, architect of the Saudi Vision 2030 programme, stated that the state-backed Public Investment Fund (PIF) will pump at least SAR150 billion (US$40 billion) into the local economy each year through 2025, with the PIF aiming to increase its assets to SAR4 trillion (US$1.1 trillion) by that year.

This report provides detailed market analysis, information, and insights into Saudi Arabia’s construction industry, including:

  • Saudi Arabia’s 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 Saudi Arabia’s 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 (2016-2020) and forecast (2021-2025) 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 the publisher'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 the publisher's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.

Table of Contents

1 Executive Summary2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 COVID-19 Status
3.5 Risk Profile
4 Construction Outlook
4.1 All Construction
  • Outlook
  • Latest news and developments
  • Construction Projects Momentum Index
4.2 Commercial Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.3 Industrial Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.4 Infrastructure Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.5 Energy and Utilities Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.6 Institutional Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.7 Residential Construction
  • Outlook
  • Project analytics
  • Latest news and developments

5 Key Industry Participants
5.1 Contractors
5.2 Consultants
6 Construction Market Data
7 Appendix
7.1 What is this Report About?
7.2 Definitions
7.3 CRI Methodology
7.4 GlobalData Construction
  • Contact The Publisher

List of Tables
Table 1: Construction Industry Key Data
Table 2: Saudi Arabia, Key Economic Indicators
Table 3: Saudi Arabia, Commercial Construction Output by Project Type (Real % Change), 2016-2025
Table 4: Saudi Arabia, Top Commercial Construction Projects by Value
Table 5: Saudi Arabia, Industrial Construction Output by Project Type (Real % Change), 2016-2025
Table 6: Saudi Arabia, Top Industrial Construction Projects by Value
Table 7: Saudi Arabia, Infrastructure Construction Output by Project Type (Real % Change), 2016-2025
Table 8: Saudi Arabia, Top Infrastructure Construction Projects by Value
Table 9: Saudi Arabia, Energy and Utilities Construction Output by Project Type (Real % Change), 2016-2025
Table 10: Saudi Arabia, Top Energy and Utilities Construction Projects by Value
Table 11: Saudi Arabia, Institutional Construction Output by Project Type (Real % Change), 2016-2025
Table 12: Saudi Arabia, Top Institutional Construction Projects by Value
Table 13: Saudi Arabia, Residential Construction Output by Project Type (Real % Change), 2016-2025
Table 14: Saudi Arabia, Top Residential Construction Projects by Value
Table 15: Saudi Arabia, Key Contractors
Table 16: Saudi Arabia, Key Consultants
Table 17: Saudi Arabia, Construction Output Value (Real, US$ Million)
Table 18: Saudi Arabia, Construction Output Value (Nominal, SAR Million)
Table 19: GlobalData Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions
List of Figures
Figure 1: Middle East and Africa, Construction Output (Real % Change), 2020 and 2021
Figure 2: Saudi Arabia, Construction Projects Pipeline by Sector (US$ Billion)
Figure 3: Saudi Arabia, COVID-19 Confirmed Cases
Figure 4: Saudi Arabia, Risk Summary
Figure 5: Saudi Arabia, Risk Regional Comparison
Figure 6: Saudi Arabia, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2016-2025
Figure 7: Saudi Arabia, Construction Output Value, by Sector (Real, US$ Million), 2016-2025
Figure 8: Saudi Arabia, Construction Value Add (SAR Million, 2010 Constant Prices), % Change YoY
Figure 9: Saudi Arabia, Real Estate Price Index (2014=100)
Figure 10: Saudi Arabia, Quarterly Change in Unemployment Rate (In %)
Figure 11: Saudi Arabia, Bank Credit to Building and Construction (In SAR Million)
Figure 12: Saudi Arabia, Construction Projects Momentum Index
Figure 13: Middle East and North Africa, Construction Projects Momentum Index
Figure 14: Saudi Arabia, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 15: Saudi Arabia, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 16: Saudi Arabia, Wholesale and Retail Trade, Restaurants and Hotels Value Add (SAR Million, 2010 Constant Prices), % Change YoY
Figure 17: Saudi Arabia, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 18: Saudi Arabia, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 19: Saudi Arabia, Manufacturing Value Add (SAR Million, 2010 Constant Prices), % Change YoY
Figure 20: Saudi Arabia, Non-Oil Sector’s Value Add (SAR Million, 2010 Constant Prices), % Change YoY
Figure 21: Saudi Arabia, Industrial and Manufacturing Production Index
Figure 22: Saudi Arabia, Total Merchandise Export (SAR Million), % Change YoY
Figure 23: Saudi Arabia, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 24: Saudi Arabia, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 25: Saudi Arabia, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 26: Saudi Arabia, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 27: Saudi Arabia, Oil Sector’s Value Add (SAR Million, 2010 Constant Prices), % Change YoY
Figure 28: Saudi Arabia, Gas and Water Value Add (SAR Million, 2010 Constant Prices), % Change YoY
Figure 29: Saudi Arabia, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 30: Saudi Arabia, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 31: Saudi Arabia, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025
Figure 32: Saudi Arabia, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 33: Saudi Arabia, Real Estate Value Add (SAR Million, 2010 Constant Prices), % Change YoY
Figure 34: Saudi Arabia, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 35: Saudi Arabia, Headquarters of Key Consultants (% of Total Project Pipeline)