Saudi Arabia is experiencing a significant increase in construction activities, with the value of construction outputs in various sectors reaching $141.5 billion, a 4.3% increase compared to the previous year. Knight Frank, a global real estate consulting firm, conducted an analysis of the construction scene in Saudi Arabia, highlighting the growth and transformation in the sector.
Mohammed Nabil, Regional Partner and Head of Project and Development Services, Middle East and North Africa, emphasized the historic transformation happening in the country, with large-scale, unique, and high-value construction projects underway. The government aims to attract investments exceeding $3 trillion by 2030, as confirmed by the Minister of Investment at a recent forum in China.
Since the launch of Saudi Arabia’s National Transformation Plan in 2016, the total budgeted value of real estate and infrastructure projects has surpassed $1.25 trillion. This transformation is driven by Vision 2030, which includes ambitious targets for residential units, hotel keys, retail and office space by the end of the decade.
The residential sector dominates construction production in Saudi Arabia, constituting 31% of the total value. Energy and utilities follow closely behind. By 2028, the construction production value in the kingdom is expected to reach $181.5 billion, making it the largest construction market globally.
Knight Frank also analyzed residential construction costs in Saudi Arabia, revealing variations in costs based on project size, quality, and type. The emergence of new megacities and Giga projects is reshaping the urban landscape of the country, with over SAR 1.25 trillion worth of projects yet to be delivered.
Overall, the construction sector in Saudi Arabia is experiencing rapid growth and transformation, driven by ambitious development plans and massive investment opportunities. As the country continues to evolve, the construction industry is set to play a crucial role in shaping its future.