Saudi Arabia Construction Industry Report 2024: Market to Expand by 4.6% in Real Terms this Year, Supported by Public and Private Investments – Forecasts to 2028 – ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–The “Saudi Arabia Construction Market Size, Trends, and Forecasts by Sector – Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2024-2028” report has been added to ResearchAndMarkets.com’s offering.

Construction industry in Saudi Arabia to expand by 4.6% in real terms in 2024, supported by public and private investment in the development of transportation, energy, tourism and housing projects. As of early March 2024, the Kingdom has SAR121.9 billion (32.5 billion) transport infrastructure projects in the bidding stage.

As part of the Kingdom’s 2024 Budget approved in December 2023, the government increased its expenditure by 12.3%, increasing from SAR1.1 trillion ($297.1 billion) in 2023 to SAR1.3 trillion ($333.6 billion) in 2024. Some of the major allocations include SAR214 billion ($57.1 billion) towards the healthcare and social development sectors, SAR195 billion ($52 billion) to the education sector and SAR38 billion ($10.1 billion) to the infrastructure and transportation sectors. According to Saudi Arabia’s Ministry of Investment, the number of investment licenses granted in the Kingdom recorded an annual growth of 96% in 2023, to 8,540.

As part of the National Investment Strategy (NIS), the government aims to improve the investment climate and increase net foreign direct investment (FDI) flows in line with the government’s aim to increase the number of industrial establishments in the Kingdom from 8,800 in 2019 to 36,000 in 2035. According to the Saudi Central Bank (SAMA), the total credit facilities provided to micro, small, and medium enterprises (MSMEs) grew by 18.6% year on year (YoY) in 2023, preceded by an annual growth of 13.6% in 2022.

Over the remainder of the forecast period, the construction industry is expected to grow at an annual average growth rate of 5.2% from 2025 to 2028, supported by the government’s focus on boosting growth in the construction industry, by increasing spending and investment in infrastructure, energy, housing and data center projects. As part of Saudi Vision 2030, the construction industry will also be bolstered by key megaprojects, notably the NEOM project that involves a total investment of SAR1.9 trillion ($500 billion).

The NEOM development is in the north-western region of Saudi Arabia and encompasses the creation of smart towns and cities, ports and enterprise areas, research centers, sports and entertainment venues, and tourist attractions on an area of 2.65 million ha, with the first phase expected to be completed by 2030. Furthermore, as of March 2024, the state-owned Saudi Ports Authority (Mawani) is undertaking 150 transport infrastructure projects in the Kingdom that involves a total investment of SAR798.8 billion ($213 billion), which are to be completed by 2030.

Growth over the forecast period will also be supported by the government’s focus to invest SAR192 billion ($51.2 billion) as part of a government incentive program ‘Shareek’, launched in March 2021 that seeks to accelerate the government’s economic diversification efforts. The projects are likely to add approximately SAR467 billion ($124.5 billion) to the Kingdom’s economy by 2040 and create over 64,000 jobs by that year.

Scope

• Historical (2019-2023) and forecast (2024-2028) valuations of the construction industry in Saudi Arabia, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using the analyst’s standardized valuation and forecasting methodologies.
• Assess market growth potential at a micro-level with over 600 time-series data forecasts.
• Understand the latest industry and market trends.
• Formulate and validate strategy using the analyst’s critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.

Key Topics Covered:

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 Risk Profile

4 Construction Outlook

4.1 All Construction

• Outlook
• Latest news and developments
• Construction Projects Momentum Index

4.2 Commercial Construction

• Outlook
• Project analytics
• Latest news and developments

4.3 Industrial Construction

• Outlook
• Project analytics
• Latest news and developments

4.4 Infrastructure Construction

• Outlook
• Project analytics
• Latest news and developments

4.5 Energy and Utilities Construction

• Outlook
• Project analytics
• Latest news and developments

4.6 Institutional Construction

• Outlook
• Project analytics
• Latest news and developments

4.7 Residential Construction

• Outlook
• Project analytics
• Latest news and developments

5 Key Industry Participants

6 Construction Market Data

7 Appendix

For more information about this report visit https://www.researchandmarkets.com/r/7azb0n

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