In-Depth Construction Market Study Supporting Expansion in Saudi Arabia
The firm’s past expansion efforts were guided by anecdotal information and supplier relationships, often leading to margin erosion or delayed execution. Leadership was unsure whether to expand regionally or vertically, and had no structured analysis on market share evolution, contract value density, or capacity barriers. The lack of a robust fact base created internal misalignment and stalled board approvals on proposed expansion paths.
We delivered a deep-dive market study segmented by construction sub-verticals, including civil infrastructure, utilities, and light industrial zones. The study combined macro-trend analysis, public tender reviews, price per square meter benchmarking, and case studies of successful diversification. Each potential market was scored across opportunity size, margin stability, and entry difficulty, enabling data-driven portfolio decision-making.
The study was delivered through four key components:
- Subsector Profiling – Analyzed contract size, density, and backlog trends
- Pricing Intelligence – Benchmarked material and labor pricing across three years
- Barrier Assessment – Mapped technical and compliance entry hurdles
- Growth Scenario Modeling – Simulated five-year P&L under multiple expansion paths
Workshops were held with board members to ensure strategic alignment.
Key strategic recommendations included:
- Prioritize infrastructure-related maintenance contracts over large capital-intensive projects
- Delay entry into industrial construction until internal compliance maturity is improved
- Focus on design-and-build contracts with modular construction options
- Build specialized subcontractor networks for regional flexibility
- Develop an internal PMO to manage project complexity during diversification
Each recommendation was supported by cost-benefit analysis and market validation.
The market study avoided a misaligned expansion strategy projected to dilute margins by 7–9%. Instead, the client reallocated SAR 12 million into high-yield regional bids in Tabuk and Dammam. Within six months, they secured 3 new contracts through targeted positioning, generating a 28% uplift in average project value. The study enabled confident scaling into adjacent markets with lower capital exposure.
