According to Knight Frank, Saudi Arabia is set to achieve a construction output value of $181.5 billion by the conclusion of 2028. This growth underscores the Kingdom’s trajectory towards becoming the leading global construction market, driven by substantial investments in diversifying the economy through various projects.
In 2023, the construction output value across residential, institutional, infrastructure, industrial, energy, utilities, and commercial sectors in the Kingdom reached $141.5 billion, marking a 4.3% rise from the previous year.
“The government is hoping to attract more than $3 trillion in investments by 2030”
“We are currently witnessing a historical transformation unfolding in Saudi Arabia with construction projects standing out in their design scale and value. Given the scale of the development pipeline, the government is hoping to attract more than $3 trillion in investments by 2030,” said Mohamed Nabil, regional partner, head of Project & Development Services, MENA.
The residential sector held the largest share of Saudi Arabia’s construction output value in 2023, representing 31% ($43.5 billion) of the total output.
The value of the residential sector is projected to reach $56.9 billion by 2028
Knight Frank said in its Construction Landscape Review—H1 2024 report that the value of the residential sector is projected to reach $56.9 billion by 2028.
Knight Frank noted that Saudi Arabia’s ongoing transformation is propelled by Vision 2030, which seeks to deliver over 660,000 residential units, more than 320,000 hotel rooms, and more than 6.1 million square meters of new office space.
Since the Vision 2030 initiative was introduced in 2016, Saudi Arabia has launched projects worth more than $1.25 trillion.