The construction industry in Saudi Arabia is expected to grow by 4.4% in real terms in 2025, supported by investments in the housing sector, energy, and transport infrastructure sectors, coupled with investments in preparation for the FIFA World Cup 2034 event that will be held in Riyadh. In November 2024, the government approved the Kingdom’s 2025 Budget, which includes a total expenditure of SAR1.3 trillion ($342.7 billion) for 2025. In a recent boost to the construction industry’s output, the government issued total number of 3,800 construction license in 2024, according to the data unveiled by the Ministry of Investment in February 2025.
The construction industry is expected to record an annual average growth rate of 5.4% from 2026 to 2029, supported by the government’s focus on boosting the tourism sector, coupled with investments in energy, housing, transport and sports infrastructure projects. In January 2025, the government revealed its long-term plan to boost the entertainment industry. This plan entails 29 investment opportunities over six sectors, including destinations, water parks, adventure parks, virtual reality parks, and e-gaming centers. This initiative will generate over SAR120 billion ($32 billion) in investments, create 100,000 direct and indirect jobs by 2030. Among the recent developments, in February 2025, Saudi Arabia’s Royal Commission for Riyadh City (RCRC) announced plans to develop eight road projects in Riyadh at an estimated cost of over SAR8 billion ($2.1 billion). Some of the projects include the northern part of the Prince Turki Bin Abdulaziz Al-Awwal Road Development Project, the middle section of the Al-Thumama Road Axis Development Project and the Imam Abdullah Bin Saud Road Development Project. Furthermore, in November 2024, the government signed nine metals and mining investment deals worth more than SAR35 billion ($9.3 billion) with an Indian mining company, Vedanta and a Chinese mining company Zijin Group. This involves the construction of a state-of-the-art smelter and refinery with an annual capacity of 400,000 tons and construction of a facility capable of producing up to 300,000 tons per year of copper rods.
The Construction in Saudi Arabia - Key Trends and Opportunities to 2029 (Q1 2025) report provides detailed market analysis, information and insights into Saudi Arabia’s construction industry, including:
The construction industry is expected to record an annual average growth rate of 5.4% from 2026 to 2029, supported by the government’s focus on boosting the tourism sector, coupled with investments in energy, housing, transport and sports infrastructure projects. In January 2025, the government revealed its long-term plan to boost the entertainment industry. This plan entails 29 investment opportunities over six sectors, including destinations, water parks, adventure parks, virtual reality parks, and e-gaming centers. This initiative will generate over SAR120 billion ($32 billion) in investments, create 100,000 direct and indirect jobs by 2030. Among the recent developments, in February 2025, Saudi Arabia’s Royal Commission for Riyadh City (RCRC) announced plans to develop eight road projects in Riyadh at an estimated cost of over SAR8 billion ($2.1 billion). Some of the projects include the northern part of the Prince Turki Bin Abdulaziz Al-Awwal Road Development Project, the middle section of the Al-Thumama Road Axis Development Project and the Imam Abdullah Bin Saud Road Development Project. Furthermore, in November 2024, the government signed nine metals and mining investment deals worth more than SAR35 billion ($9.3 billion) with an Indian mining company, Vedanta and a Chinese mining company Zijin Group. This involves the construction of a state-of-the-art smelter and refinery with an annual capacity of 400,000 tons and construction of a facility capable of producing up to 300,000 tons per year of copper rods.
The Construction in Saudi Arabia - Key Trends and Opportunities to 2029 (Q1 2025) 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 (2019-2023) and forecast (2024-2028) 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 our 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 business strategies using the analyst'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-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
