Bloomberg said that Saudi Arabia is on pace to become the largest construction market in the world, with the total value of construction contracts expected to reach $181.5 billion by the end of 2028. This represents an increase of approximately 30% from 2023 levels, according to a report issued by Bloomberg. About Knight Frank Real Estate Consulting Group.
Growth drivers
This growth is largely due to the ambitious Vision 2030 initiative, presented by Crown Prince Mohammed bin Salman, which aims to diversify the oil-dependent economy and reform the country’s infrastructure, according to the agency.
Since the launch of the initiative 8 years ago, the Kingdom of Saudi Arabia has launched projects worth more than $1.25 trillion. These projects include residential properties and several “mega-projects” designed to transform the economic landscape and accommodate the growing population and expected influx of foreign tourists.
Mohammed Nabil, regional partner and head of project and development services for the Middle East and North Africa at Knight Frank, told Bloomberg: “We are currently witnessing a historic transformation unfolding in the Kingdom of Saudi Arabia with construction projects excelling in terms of the scale of their design and value.”
Increasing construction contracts
In 2023 alone, Saudi Arabia awarded construction contracts worth more than $140 billion, with a large portion of these projects concentrated in Riyadh.
The capital is witnessing great development as it prepares to host the World Expo in 2030 and perhaps the World Cup in 2034. The Kingdom aims to increase the population of Riyadh to 10 million people by 2030, according to the same source, which will increase the demand for large infrastructure and residential projects.
The agency states that while many of the projects announced under Vision 2030 are still under implementation and some have been reduced in size, the overall pace of construction remains high as the 2030 deadline approaches.
