Saudi Arabia Construction

Founded in 1982, Eurogroup Consulting has over 40 years of experience in helping clients navigate growth in the construction market. Saudi Arabia’s fast-paced market requires client to understand and strategise in order to meet the specific needs of the local market. Our team of experts has been focused on the Kingdom for over a decade and is well positioned to provide first-class services and support to help you achieve your goals.

IntroductionWelcome to the Saudi Arabian construction sector, a robust and continually expanding space offering substantial opportunity for enterprises and investors.

Over 1 million people (approximately 7% of the Saudi workforce) are employed in this dynamic sector that is expected to grow at an average of 5% CAGR over the next five years.

Renowned for its ambitious infrastructure projects and unwavering dedication to economic development, Saudi Arabia has witnessed significant growth within the construction industry. As of 2023, this sector contributed approximately 7.2% to the nation’s Gross Domestic Product (GDP), underscoring its pivotal role in the country’s economic landscape. The pipeline boasts projects valued at over $1.7 trillion, including high-profile ventures like NEOM and the Red Sea Project, positioning the Saudi construction industry for enduring growth and innovation.
The Saudi Arabian construction industry is propelled by several key themes that are integral to the Kingdom’s Vision 2030 initiative. Vision 2030 seeks to diversify the economy, reduce dependency on oil revenues, and foster sustainable development. A cornerstone of Vision 2030 is urban development, with a focus on creating vibrant and sustainable cities. This includes the development of mega-cities, like NEOM, designed to be global economic and technological hubs.
Sustainable construction practices, driven by environmental considerations and resource efficiency, are another core theme, reflecting Saudi Arabia’s commitment to a greener future. Additionally, technological advancement and innovation play a pivotal role in enhancing efficiency and competitiveness within the construction sector.
Moreover, the Public Investment Fund (PIF) has played a significant role in driving investment within the construction industry. PIF has strategically invested in various construction companies and building materials firms, further contributing to the sector’s growth and development. Driven by extensive government leadership, capturing opportunities in Saudi Arabia construction has become a hotbed for private sector participation – currently, around 80% of projects are financed by private investors.

Trends in the Saudi Arabian Construction Market

Focus on Sustainability

  • The Saudi Green Building Council (SGBC) has developed the LEED Saudi certification program; as of 2022, there were over 1,000 LEED-registered projects in Saudi Arabia, making it the second-largest market for LEED certifications in MENA
  • The Saudi government has set ambitious targets for reducing energy consumption and greenhouse gas emissions. The Kingdom aims to achieve a 30% reduction in energy intensity by 2030 and to generate 50% of its electricity from renewable sources by 2040

Growth of Modular and Prefabricated Construction

  • The government is promoting the use of prefabrication to accelerate construction projects and reduce costs; KSA is expected to be a key contributor to the sector’s 226 Bn USD market size in 2026
  • In 2021, the Saudi Building Contractors Association (SBCA) announced the establishment of a prefabrication hub in Riyadh, which is expected to produce over 2 million square meters of prefabricated buildings annually

Digitalization and smart construction

  • The Saudi Arabian construction digital technologies market is expected to reach $3.47 billion by 2028, with a CAGR of 12.15%
  • The Saudi government is supporting the adoption of digital technologies in the construction sector through initiatives such as the Construction Technology Consortium (CTC), which aims to promote the use of BIM, AI, and other technologies to improve project efficiency and safety

Major Construction Projects in Saudi Arabia


Investment: $500 billion
Completion: 2045

Smart city in northwestern Saudi Arabia for an estimated 9 million people.


Investment: $15 billion
Completion: 2035

Three key resorts, each offering a unique identity and experience.

The Red Sea Project

Investment: $20 billion
Completion: 2030

Over 50 luxury hotels, resorts, and residential villas on the northwestern coast.


Investment: $5 billion
Completion: 2025

Three key resorts, each offering a unique identity and experience.


Investment: $10 billion
Completion: 2030

Entertainment city with theme parks, water parks, sports facilities, and cultural venues.

Riyadh Metro

Investment: $22.5 billion
Completion: 2027

Metro system in Riyadh with six lines and 188 stations.