See Inside the Saudi Construction Industry Outlook Boom

Saudi Arabia’s construction sector is undergoing a major transformation. Powered by Vision 2030 and an ambitious project pipeline, the Saudi construction industry outlook points to USD 96.26 billion in market value by 2030, growing from USD 74.11 billion in 2025 at a compound annual growth rate (CAGR) of 5.37%. Let’s take a closer look!

Saudi Construction Industry Outlook: Vision 2030 and Mega-Projects

The driving force behind this growth is a national development agenda rooted in Vision 2030. With more than USD 1.25 trillion in infrastructure and property projects underway, Saudi Arabia is redefining urban life across residential, commercial, and industrial sectors.

This includes plans for 660,000 new homes, 320,000 hotel rooms, 5.3 million square meters of retail space, and 6.1 million square meters of office space by the end of the decade. These giga-projects are not just headlines, but they are also shaping the country’s physical and economic future.

Strong Sectoral Growth Across Housing and Utilities

The residential construction sector is projected to grow from $43.5 billion in 2023 to $56.9 billion by 2028. The growth is driven by population growth, urbanization, and housing initiatives in the nation. Meanwhile, the energy and utilities segment is expected to expand from $35.1 billion to $46.5 billion over the same period.

This broad sectoral momentum shows how the Saudi construction industry is building more than just homes. It’s also laying down infrastructure that supports economic diversification and modern lifestyles for the people.

Regional Investment and Development Hotspots, According to Saudi Construction Industry Outlook

Riyadh Province is leading the construction boom, accounting for 38% of total contract awards or around $54 billion. Other high-growth regions include Mecca and Tabuk, where projects are closely aligned with tourism, infrastructure, and population targets.

The capital city of Riyadh is also experiencing a sharp rise in demand for high-end office space. As of 2024, Grade A office space in Riyadh has reached 97% occupancy, reflecting a thriving business environment and growing commercial need.

Market Output and Long-Term Forecasts

In 2024, the total construction output value across all segments reached $141.5 billion, representing a 4.3% increase from the previous year. This figure is projected to grow to $181.5 billion by 2028, as both public and private sectors continue to invest heavily in infrastructure, housing, and utilities.

From 2025 to 2029, the industry is forecast to expand at a CAGR of 4.9%, with further acceleration toward the 2030 target. The robust Saudi construction industry outlook, backed by both financial commitment and execution on the ground, are reinforcing the numbers.

Saudi Construction Industry Outlook: A Market Built for Growth

The Saudi construction industry outlook is not just about cranes and concrete. It reflects a national strategy to build a diversified economy, modern cities, and a stronger future. With over $2.1 trillion in projects on the horizon and a market approaching $100 billion, it is no wonder that Saudi Arabia is positioned as a global hub for construction and infrastructure development. For investors, developers, and policymakers, the message is clear: Saudi Arabia is building big and fast.