Saudi Arabia’s construction industry dominates the MENA region and is well on its way to becoming one of the world’s leading markets as well. With a remarkable 39% share of the total project pipeline in MENA, accounting for $3.9 trillion, Saudi Arabia enjoys a sustained growth trajectory.
As part of its sector-building efforts, AstroLabs, the Gulf’s leading business expansion platform, has just released a guidebook focused on the Saudi construction sector.
With a focus on key construction projects currently taking place across the Kingdom, the guidebook provides a detailed overview of the sector’s growth over the years and practical tips and insights into how foreign companies can navigate the market expansion process effectively.
Gain a deep dive into 5200+ current projects in the construction sector in Saudi. Access AstroLabs construction guidebook here.
How Construction Powers Progress of the Saudi Economy
Saudi Arabia’s construction sector is acting as a linchpin for sustainable development, with its growth extending beyond brick and mortar to catalyze advancement across pivotal sectors of the non-oil economy.
The sector’s guidebook examines the role of construction projects in creating a ripple effect that reverberates across the entire economy, in line with Vision 2030 and where opportunities for growth lie for local and international industry participants.
Among these strategic sectors are tourism, infrastructure, sports, energy, and technology, all of which are currently witnessing a broad spectrum of construction projects that are set to contribute to economic efficiency on a national scale.
For one, hospitality is one major beneficiary and a cause of the construction spree. Cities like Qiddiya, ROSHN, Diriyah Gate, NEOM, Amaala, and the Red Sea alone account for 73% of the country’s hotel supply pipeline.
The $62.2 billion Diriyah Gate, for example, will be home to 39 hotels comprised of 5000 hotel rooms by 2030, creating new opportunities to capitalize on for international construction companies. Diriyah Gate is planned to have 38 hotels comprised of 5000 hotel rooms by 2030.
Meanwhile, the Red Sea’s Amaala, expected to become one of the world’s largest tourism projects, is planned to host 29 hotels, with 3900 rooms set for completion by the same year.
Turning the focus to infrastructure, another sector that stands to benefit from the construction resurgence will usher in new advancements in the Kingdom’s transportation networks.
Notable projects include the 2,400-kilometer North-South Railway, the Haramain High-Speed Railway and the Riyadh Metro, which is set to become the largest public transport network in the world.
The continuous privatization efforts targeting seaports and airlines open up a myriad of investment opportunities in areas like freight forwarding and warehousing services and third-party services (3PL). From there, the Saudi logistics industry, forecast to contribute 10% of the Saudi GDP by 2030, forms the backbone of a multitude of construction projects nationwide.
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Riyadh EXPO 2030 and FIFA World Cup 2034: Primary Ingredients for Accelerating Growth of Saudi Construction Sector
With the country poised to host large-scale events such as Riyadh Expo 2030 and FIFA World Cup 2034, opportunities accelerate for foreign companies looking for unparalleled avenues for growth, leverage lucrative partnerships, and carve out a path for success and growth. This guidebook takes a deeper look at the myriad of commercial projects associated with these two mega-events and maps out key opportunities across the construction sector value chain.
Taking a granular look, Riyadh Expo 2030, which is expected to add SAR 355 billion ($94.53 billion) to the Kingdom’s non-oil GDP, will provide a major boost to the construction sector, resulting in a forecast annual growth of 5.7%.
With large-scale construction happening on the ground, Saudi Arabia is proving its readiness to be the ideal host country for such mega events, further boosting its attractiveness and further pushing the growth of its non-hydrocarbon economy.
In preparation for the FIFA World Cup 2034 as well as the soon-to-be-held sports tournaments, Saudi Arabia has already embarked on what’s believed to be the largest sports construction wave on earth. With a $2.7 billion investment planned in sports venues and facilities, sports construction space provides ample room for international firms looking to establish a robust foothold in
The guidebook explores the driving forces behind that growth in both segments across various categories and highlights the key factors that help propel the momentum forward.
Given the immense scale and scope of construction projects nationwide, innovation is indispensable in mitigating potential threats to productivity.
Contech has proven instrumental in steering the development of the Saudi building and construction sector, making the country a preferred destination for expansion among tech companies seeking to gain a first-mover advantage.
The construction guidebook highlights the increasing interest of tech companies in expanding to Saudi Arabia to become part of an environment that fosters innovation and offers opportunities for engaging in giga projects.
Exploring expansion and growth opportunities in Saudi Arabia? Learn more about how AstroLabs can support you
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