Saudi Arabia is on track to become the world’s largest construction market as the Kingdom heavily invests in projects aimed at revitalising and diversifying the economy, according to real estate consultancy group Knight Frank.
The total construction output value in the country is expected to reach $181.5 billion by the end of 2028, which represents a nearly 30% increase from the levels seen in 2023, according to a research report published by the London-based firm on Monday.
A significant portion of the investment is expected to originate from residential property and large-scale development projects, as well as other initiatives included in Crown Prince Mohammed bin Salman’s efforts to diversify the economy beyond oil. This initiative, called Vision 2030, will have to accommodate a growing population and an anticipated increase in foreign tourists in order to be successful.
During an interaction with Zawya, Mohamed Nabil, regional partner and head of project and development services for the Middle East and North Africa at Knight Frank, said, “We are currently witnessing a historical transformation unfolding in Saudi Arabia with construction projects standing out in their design scale and value.”
Since the inception of the Vision 2030 initiative eight years ago, Saudi Arabia has initiated projects with a combined value exceeding $1.25 trillion, according to research by Knight Frank. While many of these projects have not been completed and some have been scaled down, the Kingdom is accelerating its efforts as the 2030 deadline approaches.
In 2023, contracts worth over $140 billion were awarded for construction projects, as reported by Knight Frank. The majority of these contracts were allocated in Riyadh, where Saudi Arabia aims to increase the city’s population to 10 million by 2030.
Riyadh has emerged as a key focus area as the Kingdom prepares to host the World Expo in 2030, and potentially the World Cup in 2034.