Is Saudi Arabia set to become world’s largest market for construction?

Digital render of how the Port of Neom and Oxagon will look (Image: Neom)

In its Construction Landscape Review H1 2024 report, the UK-based firm projected that Saudi Arabia’s total construction output value will reach $181.5 billion by the end of 2028.

If this figure is achieved it would be an increase of almost 30% from 2023 levels when the output value for the sector reached $141.5 billion.

This growth is to come from the desire to execute the Vision 2030 plan, which looks to transform the country’s economy and reduce dependence on money from oil.

Saudi Arabia has some of the world’s biggest construction projects, such as NEOM. However, some of these projects have been scaled back recently.

“We are currently witnessing a historical transformation unfolding in Saudi Arabia with construction projects standing out in their design scale and value,” said Mohamed Nabil, regional partner and head of project and development services for the Middle East and North Africa at Knight Frank.

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Since the Vision 2030 initiative was introduced eight years ago, Saudi Arabia has launched projects with a value of more than $1.25 trillion, according to Knight Frank’s research.

In 2023 alone, more than $140 billion of construction contract awards were granted. The majority were in Riyadh, where Saudi Arabia aims to grow its population to ten million by 2030.

The capital city has become a major focal point as the kingdom prepares to host the World Expo in 2030 and the FIFA World Cup in 2034.

View the report here.