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Saudi Arabia Construction Market

Saudi Arabia Construction Market

Saudi Arabia Construction Market, By Sector (Commercial Construction, Residential Construction, Industrial Construction, Energy & Utilities Construction, Institutional Construction, Others); By Construction Type (Building & Construction, New, Renovation, Repair & Maintenance); By End User (Public, Private), Trend Analysis, Competitive Landscape & Forecast, 2019–2030

  • Published Date: June 2024
  • Report ID: BWC24433
  • Available Format: PDF
  • Page: 200

Report Overview

The Saudi Government’s increasingly large investments in the mega infrastructure development projects and rapid urbanization and industrialization across the Kingdom are expected to boost the growth of Saudi Arabia Construction Market during the forecast period between 2024 and 2030.

Saudi Arabia Construction Market - Industry Trends & Forecast Report, 2030

The Saudi Arabia Construction Market size was estimated to be worth USD 70.67 billion in 2023. During the forecast period between 2024 and 2030, the Saudi Arabia Construction Market size is projected to grow at a CAGR of 5.19%, reaching a value of USD 96.21 billion by 2030. Major growth factors for the Saudi Arabia Construction Market include favorable government investments and policies, including the Kingdom's Vision 2030 National Development Program, and rising demand for residential complexes with increasing housing demand. In addition, the rising integration of automated solutions in the construction industry is anticipated to drive the Saudi Arabia construction market during the forecast period.

Saudi Arabia Construction Market

Construction – Overview

Construction includes building new buildings, roads, residences, railroads, and other structures, as well as renovating or repairing existing ones. It also involves several procedures like planning, financing, and developing the assets so that they are used. The construction industry, which is vital to the economic growth of a region, laid the technological and physical foundations for modern civilization. Also, the rise in eco-awareness is hastening the creation of energy-efficient, net-zero structures. Aerial lifts, backhoe loaders, cranes, excavators, and welders are just a few of the various tools and equipment used in the construction industry.

Saudi Arabia Construction Market

Growth Drivers

Rising Adoption of Automation in Construction Industry

The companies involved in the construction sector in Saudi Arabia are increasingly investing in integrating new and innovative technologies to boost their market share. Robots can install drywall, pave roads, lay bricks, excavate to certain depths, and handle plumbing, and therefore, are gaining significant traction in the market. Other technologies, such as construction machinery like excavators, cranes, and bulldozers that can be controlled and monitored remotely through automation, are being deployed in construction activities to improve efficiency, reduce cost, and attain sustainability.  

Challenges

Regulatory Complexity in Saudi Arabia

The complex regulations in the construction sector of Saudi Arabia are a challenge to navigate through, which hinders foreign investment in the sector. For instance, with Arabic as the predominant language, international investors are required to create legal documents and communicate through the Arabic language. As a result, they need to hire and employ translators and legal experts proficient in both languages. Furthermore, Sharia law governs the commercial activities in the country, under which international companies are required to perform. Such regulations may act as a huge restraining factor for Saudi Arabia construction market growth.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Construction Market

Intensifying geopolitical tensions hinder the growth of the Saudi Arabia Construction Market. For instance, escalating geopolitical tensions in Israel and across the Middle East region have resulted in the disruptions of international shipping and supply chains of construction materials in Saudi Arabia as well. The hindrance to commercial shipping in the Red Sea and Gulf of Aden caused a significant spike in the cost of construction materials due to increased shipping costs which have disrupted the overall growth of the Saudi Arabia Construction Market.

Saudi Arabia Construction Market

Segmental Coverage

Saudi Arabia Construction Market – By Sector

Based on sector, the Saudi Arabia Construction Market is segmented into commercial construction, residential construction, industrial construction, energy & utilities construction, institutional construction, and others. The commercial construction sector holds the largest share in the Saudi Arabia Construction Market. The Saudi Government is significantly investing in propelling the tourism sector by constructing commercial spaces such as entertainment facilities, airports, ports, recreational complexes, and education facilities. Saudi Arabia is also witnessing substantial growth in its service sector, which is anticipated to boost demand for offices, driving commercial construction market growth.

Saudi Arabia Construction Market – By Construction Type

On the basis of construction type, the Saudi Arabia Construction Market is segmented into building & construction, new, renovation, and repair & maintenance. The building & construction segment accounts for the highest market share. The growth of the segment is mainly attributed to the increasing construction of residential and non-residential buildings. The increasing housing demand in the Kingdom owing to rising population and accessibility to housing loans is directly influencing the building and construction of residential buildings, which is propelling its market growth.

Saudi Arabia Construction Market – By End User

By end user, the Saudi Arabia Construction Market is segmented into public and private. The public sector dominates the Saudi Arabia Construction Market. According to the International Trade Administration, the Public Investment Fund, Saudi Arabia’s sovereign wealth fund, plays a crucial role in investing and driving the construction sector of the Kingdom. Public investment has supported various construction projects, including the ambitious NEOM city project. The government is also focused on promoting the tourism sector through the construction of tourism projects, such as Red Sea Coast and Qiddiya, which is driving overall market growth.

Saudi Arabia Construction Market Share

Competitive Landscape

Major players operating in the Saudi Arabia Construction Market include Bechtel, Fluor Corp., Tekfen Construction and Installation Co. Inc., Gilbane Building Co., Jacobs, Afras, BEC Arabia, Mofarreh M. Al Harbi Est, Nesma Holding Co. Ltd, and AL Jazirah Engineers & Consultants.

To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

  • In May 2024 – WakeCap, an IoT-based enterprise solution provider for construction sites, formed a partnership with EarthCam, a construction camera solution provider, to offer construction solutions in Saudi Arabia.

Scope of the Report

Attributes

Details

Years Considered

Historical Data – 2019–2023

Base Year – 2023

Estimated Year – 2024

Forecast Period – 2024–2030

Facts Covered

Revenue in USD Billion

Product/ Service Segmentation

Sector, Construction Type, End User

Key Players

Bechtel, Fluor Corp., Tekfen Construction and Installation Co. Inc., Gilbane Building Co., Jacobs, Afras, BEC Arabia, Mofarreh M Al Harbi Est, Nesma Holding Co Ltd, AL Jazirah Engineers & Consultants

 

By Sector

  • Commercial Construction

  • Residential Construction

  • Industrial Construction

  • Energy & Utilities Construction

  • Institutional Construction

  • Others

By Construction Type

  • Building & Construction

  • New

  • Renovation

  • Repair & Maintenance

By End User

  • Public

  • Private

  1. Research Framework
    1. Research Objective
    2. Product Overview
    3. Market Segmentation
  2. Executive Summary
  3. Saudi Arabia Construction Market Insights
    1. Industry Value Chain Analysis
    2. DROC Analysis
      1. Growth Drivers
        1. Government Significant Investments in Infrastructure, Urban Development
        2. Rapid Urbanization in Saudi Arabia
        3. Growing Population and Housing Demand
        4. Government Initiatives to Promote Constructions
      2. Restraints
        1. Regulatory Complexity in Saudi Arabia
        2. Lack of Skilled Labor
      3. Opportunities
        1. Increasing Infrastructure Development
        2. Increasing Adoption of Innovative Technologies like Building Information Modeling (BIM), Prefabrication, and 3D Printing
      4. Challenges
        1. Financing Infrastructure Projects
        2. Ensuring Worker Safety and Improving Working Conditions
    3. Technological Advancements/Recent Developments
    4. Regulatory Framework
    5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
  4. Saudi Arabia Construction Market: Pricing Analysis
  5. Saudi Arabia Construction Market: Marketing Strategies
  6. Saudi Arabia Construction Market Overview
    1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
    2. Market Share & Forecast
      1. By Sector
        1. Commercial Construction
        2. Residential Construction
        3. Industrial Construction
        4. Energy and Utilities Construction
        5. Institutional Construction
        6. Others
      2. By Construction Type
        1. Building & Construction
        2. New
        3. Renovation
        4. Repair & Maintenance
      3. By End User
        1. Public
        2. Private
  7. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Saudi Arabia Construction Company Market Share Analysis, 2023
    3. Competitive Benchmarking, By Operation Channel Parameters
    4. Key Strategic Development (Mergers, Acquisitions, Partnerships, etc.)
  8. Impact of Escalating Geopolitical Tensions on Saudi Arabia Construction Market
  9. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
    1. Bechtel
    2. Fluor Corp.
    3. Tekfen Construction and Installation Co. Inc.
    4. Gilbane Building Co.
    5. Jacobs
    6. Afras
    7. BEC Arabia
    8. Mofarreh M Al Harbi Est
    9. Nesma Holding Co Ltd
    10. AL Jazirah Engineers & Consultants
    11. Other Prominent Players
  10. Key Strategic Recommendations
  11. Research Methodology
    1. Qualitative Research
      1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
    4. Breakdown of Primary Research Respondents, By Region
    5. Assumption & Limitation

 

*Financial information of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

 

List of Figures

 

Figure 1       Saudi Arabia Construction Market Segmentation

Figure 2       Saudi Arabia Construction Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       Saudi Arabia Construction Market Size, By Value (USD Billion), 2019–2030

Figure 5       Saudi Arabia Construction Market Share, By Sector, By Value (USD Billion) 2019–2030

Figure 6       Saudi Arabia Construction Market Share, By Construction Type, By Value (USD Billion) 2019–2030

Figure 7       Saudi Arabia Construction Market Share, By End User, By Value (USD Billion) 2019–2030

 

List of Tables      

 

Table 1        Saudi Arabia Construction Market Size, By Value (USD Billion), 2019–2030

Table 2        Saudi Arabia Construction Market Share, By Sector, By Value (USD Billion) 2019–2030

Table 3        Saudi Arabia Construction Market Share, By Construction Type, By Value (USD Billion) 2019–2030

Table 4        Saudi Arabia Construction Market Share, By End User, By Value (USD Billion) 2019–2030

Table 5        Bechtel Company Overview

Table 6        Bechtel Financial Overview

Table 7        Fluor Corp. Company Overview

Table 8        Fluor Corp. Financial Overview

Table 9        Tekfen Construction and Installation Co. Inc. Company Overview

Table 10      Tekfen Construction and Installation Co. Inc. Financial Overview

Table 11      Gilbane Building Co. Company Overview

Table 12      Gilbane Building Co. Financial Overview

Table 13      Jacobs Company Overview

Table 14      Jacobs Financial Overview

Table 15      Afras Company Overview

Table 16      Afras Financial Overview

Table 17      BEC Arabia Company Overview

Table 18      BEC Arabia Financial Overview

Table 19      Mofarreh M Al Harbi Est Company Overview

Table 20      Mofarreh M Al Harbi Est Financial Overview

Table 21      Nesma Holding Co Ltd Company Overview

Table 22      Nesma Holding Co Ltd Financial Overview

Table 23      AL Jazirah Engineers & Consultants Company Overview

Table 24      AL Jazirah Engineers & Consultants Financial Overview

Market Segmentation

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Frequently Asked Questions (FAQs):

Ans: The Saudi Arabia Construction Market size was estimated at USD 70.67 billion in 2023.
Ans: The Saudi Arabia Construction Market size is expected to grow at a CAGR of 5.19% during the forecast period between 2024 and 2030.
Ans: The Saudi Arabia Construction Market size is forecast to reach a value of USD 96.21 billion by 2030.
Ans: Major factors driving the growth of the Saudi Arabia Construction Market include government significant investments in infrastructure, urban development and rapid urbanization in Saudi Arabia.
Ans: The public segment holds the highest market share in the Saudi Arabia Construction Market by end user.
Ans: The building & construction segment is expected to grow at the fastest CAGR in the Saudi Arabia Construction Market during the forecast period between 2024 and 2030.