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Our latest Saudi Arabia Construction Report 2025 provides the most recent economic and market data and predicts the short- and long-term effects of trends on the construction sector. As 2025 unfolds, the market remains strong and the scope and volume of projects announced under Vision 2030 continue to ensure a robust pipeline of construction work across the Kingdom of Saudi Arabia.
Overall, this report will serve as a valuable resource for construction companies in Saudi Arabia and investors who are looking for a way to expand in Saudi Arabia.
According to the October 2024 projections, Saudi Arabia's GDP growth is anticipated to increase from 1.5% in 2024 to 4.6% in 2025. While the growth rate has reduced compared to the July 2024 estimates wherein growth for 2024 and 2025 were forecasted at 1.7% and 4.7% respectively, economic reforms and diversification efforts.
The Kingdom remains on a strong trajectory of economic expansion, driven by ongoing reforms and diversification initiatives under its ambitious Vision 2030 strategy which aims to foster sustainable growth and and economic transformation.
The projected distribution of contractor awards in Saudi Arabia for 2025 highlights the diversification of investments across key sectors. The top five industries driving growth include buildings, commanding a significant share due to urban development and mega-projects tied to Vision 2030.
The KSA's Vision 2030 emphasizes the strategic goal of the nation to change its primary industries, particularly the non-oil sector, and contribute to the GDP of the Kingdom, which has been taken into consideration when planning the budget.
Saudi Arabia's involvement in potential initiatives such as NEOM, the Red Sea, ROSHN, and Qiddiya is evidence of its dedication to mega infrastructure development. Significant changes are being made to the Kingdom's terrain as a result of these strategic construction projects in KSA.
By prioritizing technological advancement and sustainability in construction techniques, the initiatives seek to transcend beyond unorthodox construction undertakings, paving the way for futuristic urban ecosystems that align with the Kingdom's Vision 2030 goals.
Saudi Arabia is a significant industrial services hub. The economy of the nation has been gradually expanding, and the government has made notable efforts to encourage the expansion of the construction companies in Saudi Arabia and the industrial services sector. It provides a multitude of chances in fields including engineering, maintenance, construction, logistics, and consulting services.
According to estimates, the Saudi Arabian industrial services market was worth USD 39 billion in 2019 and is projected to grow at a compound annual growth rate of 5.1% to reach USD 54 billion by 2026.
KSA is among the GCC countries where the innovations and trends seen in the global construction business have an impact on the building sector. Saudi Arabia has demonstrated a strong desire to embrace green and sustainable building principles. It emphasizes utilizing energy-efficient designs and environmentally friendly materials without sacrificing the caliber of construction. KSA aims to transform the construction companies in Saudi Arabia, which is essential to expanding the nation's economy, by adhering to the most recent trends in the industry.
By implementing sustainable methods, the construction Industry in KSA is actively contributing to environmental conservation. Saudi Arabia takes environmental sustainability seriously because it is consistent with their Vision 2030, which prioritizes sustainability and a reduction in the country's reliance on oil. KSA has 1,851 registered LEED projects as of October 30, 2023, of which 1,168 have received recognition for their energy and environmental efficiency. Interestingly, 663 projects have achieved Silver certification, compared to 45 projects that have obtained basic LEED certification. In a similar vein, 216 projects have received Platinum accreditation, while 244 have received Gold certification.
The size of the Saudi Arabian infrastructure sector market is projected to be USD 44.81 billion in 2029 and is anticipated to increase at a CAGR of 4.48% to reach USD 44.81 billion by 2029. Saudi Arabia has declared plans to invest trillions of dollars in infrastructure, to diversify its economy away from oil and establish itself as a major international center for logistics and investment.
Mining is a target for transformation in Saudi Arabia and is intended to be the third pillar of the oil, gas, and petrochemical industries. Many factories, as many as 1,801, with a capital of US$ 18.3 billion, are under construction.
