The analyst expects the construction industry in Saudi Arabia to grow by 4% in real terms in 2025, before recording an annual average growth of 5.4% from 2026 to 2029. The industry’s output in 2025 will be supported by allocations as part of the Kingdom’s 2025 Budget, which includes a total expenditure of SAR1.3 trillion ($342.7 billion) for 2025, compared to the budget of SAR1.251 trillion ($333.6 billion) in 2024. The industry’s output over the remainder of the forecast period will be supported by investments in transport, electricity, housing, and water infrastructure projects. In May 2025, Saudi Arabia’s National Water Company (NWC) announced its plan to award 15 sewage infrastructure projects worth over SAR2.3 billion ($613.3 million) to enhance wastewater services and operational efficiency. One of the key projects is the “Eastern Tunnel Project” in Jeddah, costing SAR774 million ($206.4 million), involving construction of a 14km sewage pipeline. The project is aimed at improving environmental conditions in ten major districts. Another key project is the SAR915 million ($244 million) “airport sewage lifting project” with a capacity of 611,000m3/day to reduce pollution and expand service coverage.
The industry’s growth over the forecast period will also be supported by investments as part of the data center and sports infrastructure projects. In May 2025, the Gulf Cooperation Council (GCC), a political and economic alliance of six Middle Eastern countries, experienced a major surge in data center and AI-related investments, driven by geopolitical shifts, the global AI race, and efforts to diversify economies away from hydrocarbons. Some of the leading investment firms like KKR, ADQ, and regional sovereign wealth funds are spearheading multi-billion-dollar projects, such as US-based KKR’s SAR18.8 billion ($5 billion)-backed expansion of Gulf Data Hub and UAE-based ADQ’s SAR93.8 billion ($25 billion) power infrastructure plan to support data centers
The Construction in Saudi Arabia - Key Trends and Opportunities to 2029 (Q2 2025) report provides detailed market analysis, information, and insights into Saudi Arabia’s construction industry, including:
The industry’s growth over the forecast period will also be supported by investments as part of the data center and sports infrastructure projects. In May 2025, the Gulf Cooperation Council (GCC), a political and economic alliance of six Middle Eastern countries, experienced a major surge in data center and AI-related investments, driven by geopolitical shifts, the global AI race, and efforts to diversify economies away from hydrocarbons. Some of the leading investment firms like KKR, ADQ, and regional sovereign wealth funds are spearheading multi-billion-dollar projects, such as US-based KKR’s SAR18.8 billion ($5 billion)-backed expansion of Gulf Data Hub and UAE-based ADQ’s SAR93.8 billion ($25 billion) power infrastructure plan to support data centers
The Construction in Saudi Arabia - Key Trends and Opportunities to 2029 (Q2 2025) report provides detailed market analysis, information, and insights into Saudi Arabia’s 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
