The construction industry in Saudi Arabia is expected to grow by 4% in real terms in 2025, supported by investments in the housing, energy, and transport infrastructure sectors, coupled with investments in preparation for the FIFA World Cup 2034 event that will be held in Riyadh. According to the General Authority for Statistics (GaStat), the total gross fixed capital formation (GFCF) grew by 4% year-on-year (YoY) in the first half of 2025, followed by an annual growth of 1.6% in 2024. The industry’s growth in 2025 will also be supported by investments as part of the 2025 Budget that was approved in November 2024. The budget includes a total expenditure of SAR1.3 trillion ($346.7 billion) for 2025, compared to the budget of SAR1.251 trillion ($333.6 billion) in 2024.
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 the industrial, housing and sports infrastructure projects. The government plans to increase the contribution of the tourism sector to the overall GDP from 3% in 2019 to 10% by 2030, as part of Saudi Arabia’s National Tourism Strategy. Under the Saudi Vision 2030 Plan, the government aims to increase homeownership from 65.4% in 2024 to 70% by 2030 and target to increase the number of industrial establishments in the country from 8,800 in 2019 to 36,000 in 2035. In line with this goal, in August 2025, the Saudi Arabian government launched a tripartite agreement between the Real Estate Development Fund (REDF), the National Housing Company (NHC), and the Saudi National Bank (SNB) to deliver over 40,000 housing units across 24 residential projects nationwide
The Construction in Saudi Arabia - Key Trends and Opportunities to 2029 (Q3 2025) report provides detailed market analysis, information, and insights into the Saudi Arabian 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 the industrial, housing and sports infrastructure projects. The government plans to increase the contribution of the tourism sector to the overall GDP from 3% in 2019 to 10% by 2030, as part of Saudi Arabia’s National Tourism Strategy. Under the Saudi Vision 2030 Plan, the government aims to increase homeownership from 65.4% in 2024 to 70% by 2030 and target to increase the number of industrial establishments in the country from 8,800 in 2019 to 36,000 in 2035. In line with this goal, in August 2025, the Saudi Arabian government launched a tripartite agreement between the Real Estate Development Fund (REDF), the National Housing Company (NHC), and the Saudi National Bank (SNB) to deliver over 40,000 housing units across 24 residential projects nationwide
The Construction in Saudi Arabia - Key Trends and Opportunities to 2029 (Q3 2025) report provides detailed market analysis, information, and insights into the Saudi Arabian construction industry, including:
- The Saudi Arabian 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 the Saudi Arabian 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 (2020-2024) and forecast (2025-2029) 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
