economic position and rapid urban development. According to Knight Frank, the country’s total construction output is projected to reach $150 billion by 2025.
Construction activity is booming, with the current value of output across residential, institutional, infrastructure, industrial, energy, utilities, and commercial sectors hitting $142 billion, a 4.3% increase from the previous year. This growth is closely tied to Saudi Arabia’s Vision 2030 plan, which aims to diversify the economy beyond the energy sector and establish the nation as a leader in tourism, commerce, and trade.
By 2080, construction output in Saudi Arabia is expected to exceed $180 billion, predominantly driven by residential projects and infrastructure related to energy and utilities. Infrastructure construction is projected to experience significant growth.
Currently, 38% of the total contract value is allocated to projects in the Riyadh province, totaling $54 billion, followed by Mecca and Tabuk with $28.7 billion and $28.5 billion, respectively.
“While construction sector contract awards make up 61% of the total value, the transportation sector follows at 33%, reflecting the significant investments being made to enhance the capital’s transportation infrastructure as its population is projected to reach 10 million by 2030,” noted Mohamed Nabil, regional partner and head of Project & Development Services at Knight Frank.
Western Saudi Arabia is expected to be the epicenter of future construction activity, with numerous “giga projects” emerging, primarily in this region. There are currently 25 giga projects in various stages of planning or construction, totaling approximately $690 billion, which represents just over half of the country’s total development plans.
“We are witnessing a historic transformation in Saudi Arabia with construction projects of unprecedented scale and value,” said Nabil. “With such a vast development pipeline, the government aims to attract over $3 trillion in investments by 2030, as recently confirmed by the Minister of Investment.”
Additionally, Saudi Arabia joined the $1 trillion club last year, surpassing Switzerland to become the 19th largest economy globally.
