Saudi Arabia Construction Industry Databook 2025: Market Size & Forecast by Value & Volume Across Residential, Commercial, Industrial, Institutional, Infrastructure, City-Level Construction 2020-2029 - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Saudi Arabia Construction Industry Databook Series - Market Size & Forecast by Value & Volume, 40+ Market Segments Across Residential, Commercial, Industrial, Institutional, Infrastructure, City-Level Construction by Value and Cost Structure, Q4 2025 Update" report has been added to ResearchAndMarkets.com's offering.

According to the analyst, the construction market in Saudi Arabia is expected to grow by 6.2% on annual basis to reach SAR 232.14 billion in 2025.

The construction market in the country experienced robust growth during 2020-2024, achieving a CAGR of 9.4%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 4.9% during 2025-2029. By the end of 2029, the construction sector is projected to expand from its 2024 value of SAR 218.58 billion to approximately SAR 297.19 billion.

This report provides a detailed data-centric analysis of the construction sector in Saudi Arabia, offering a comprehensive view of market opportunities in the building and infrastructure construction industry at the country level. With over 100+ KPIs covering growth dynamics in building and infrastructure construction, construction cost structure analysis, and analysis by key cities in the country, this databook provides a wealth of data-centric analysis with charts and tables, ensuring stakeholders are fully informed.

Key Insights

Saudi Arabia Residential Construction Industry

The outlook for Saudi Arabia's residential construction sector remains exceptionally strong, driven by high demand and robust government support. Developers have clear mandates and substantial backing to deliver hundreds of thousands of homes, presenting significant market opportunities. Innovators who adopt fast-build techniques and ensure reliable supply chains stand to gain considerable advantages in this booming market. However, the sector faces critical challenges, notably rising construction costs and persistent labor shortages. To mitigate these risks, stakeholders are adopting cost-control measures such as bulk procurement, local manufacturing, and modular construction.

Maintaining affordability for middle-income families is essential, requiring continued government incentives like subsidized loans and favorable financing terms. For senior executives, aligning closely with initiatives such as the Vision 2030 Housing Program and the Sakani scheme is crucial for reducing market risks. Given the concentration of demand and investment in Riyadh, an urban focus is advisable. At the same time, emerging opportunities in secondary cities and integrating sustainability and smart-home features can further enhance competitive advantage in an evolving market landscape.

Saudi Arabia Commercial Construction

The commercial construction sector in Saudi Arabia presents unmatched growth opportunities driven by ambitious government-backed initiatives and a thriving tourism and business landscape. With significant projects ranging from iconic entertainment hubs to state-of-the-art office parks, companies can participate in globally significant developments. Early involvement in these giga-projects can yield first-mover advantages as the market expands. However, the sector faces significant execution risks due to the concurrent rollout of mega-projects, which could lead to delays, contractor capacity issues, and cost overruns.

Firms must proactively mitigate these risks by securing long-lead materials and diversifying the contractor base. Additionally, the potential for oversupply of commercial space in some locales necessitates careful, strategic phasing of projects. Collaborating strategically with government initiatives like the PIF and aligning with Vision 2030 themes are essential for success. Emphasizing quality, differentiation, and sustainable design will help projects stand out in a competitive market. For construction firms, investing in a skilled workforce and advanced project management technologies while planning for long-term operational efficiency is key to capturing high rewards in this dynamic environment.

Saudi Arabia Institutional Construction

The institutional construction sector presents stable, mission-critical opportunities backed by robust government commitment to social infrastructure. With large-scale investments in healthcare and education, companies can secure long-term revenues while making a significant social impact. Public-private partnerships offer attractive prospects, particularly in projects that span 20-year management contracts. However, significant challenges exist in ensuring on-time delivery and maintaining high-quality standards across many concurrent projects.

The rigidity of project timelines, especially in educational builds, means that delays could have serious social implications, such as leaving students without classrooms. Integrating advanced systems and managing resource allocation across multiple regions remains a persistent hurdle. Strategically, firms should align closely with Vision 2030 and related government programs to secure a competitive edge. Building consortiums or partnerships can help pool expertise and meet the high standards required for institutional projects. Adopting a lifecycle approach incorporating maintenance and operational efficiency into the initial design will be crucial for long-term success in this sector.

Saudi Arabia Industrial Construction

The industrial construction sector is a critical pillar of Saudi Arabia's Vision 2030, offering substantial opportunities for companies with the right expertise. Mega-projects in petrochemicals, mining, and advanced manufacturing provide high-value prospects supported by attractive government incentives and low-cost financing. This environment is ideal for international firms with process-plant experience and local companies with strong execution capabilities. However, the sector also faces significant challenges due to the complexity and scale of projects, particularly in remote locations. Managing supply chain risks, navigating commodity price volatility, and meeting stringent local content and workforce requirements demand world-class project management and risk mitigation strategies.

Competitive pressures are intensifying as more global firms enter the market, making technology differentiation and strategic partnerships essential. For long-term success, companies should align their strategies closely with Saudi Arabia's industrial priorities and foster partnerships with key entities such as PIF, Aramco, and Ma'aden. Embracing local content mandates and investing in innovative, sustainable construction technologies will provide a competitive edge. A robust risk management framework - including financial hedging and contingency planning - will ensure that firms can effectively navigate the evolving market landscape and secure a lasting presence in the Kingdom's industrial future.

Report Scope

KPIs covered include the following:

• Market size by value
• Market size by volume of construction
• Number of units

Saudi Arabia Economic Indicators

Saudi Arabia Top Cities Construction Data

Saudi Arabia Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by:

• Housing type (multi family, single family)
• Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Price point/income level (luxury, mid-tier, affordable)
• Construction stage (new construction, re-development & maintenance)

Saudi Arabia Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by:

• Green building by Housing type (multi family, single family)
• Green building by Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Green building by Price point/income level (luxury, mid-tier, affordable)

Saudi Arabia Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by:

• Office (further broken down by Grade A, Grade B, and Grade C)
• Retail (further broken down by Grade A, Grade B, and Grade C)
• Hospitality (further broken down by Grade A, Grade B, and Grade C)
• Restaurant (further broken down by Grade A, Grade B, and Grade C)
• Entertainment
• Sports facility
• Other commercial building construction
• Construction stage (new construction, re-development & maintenance)

Saudi Arabia Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by:

• Office green building construction
• Retail green building construction
• Hospitality green building construction
• Restaurant green building construction
• Entertainment green building construction
• Sports facility green building construction
• Other commercial green building construction

Saudi Arabia Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)

• Manufacturing Plants building construction
• Chemical & Pharmaceutical building construction
• Metal & Material Processing building construction
• Construction stage (new construction, re-development & maintenance)

Saudi Arabia Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by:

• Healthcare construction
• Educational construction
• Other building construction
• Construction stage (new construction, re-development & maintenance)

Saudi Arabia Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by:

• Healthcare green building construction
• Educational green building construction

Saudi Arabia Infrastructure Construction Sectors: 10-year market size & forecast in value terms by:

• Marine and inland water infrastructure
• Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
• Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
• Construction stage (new construction, re-development & maintenance)

Saudi Arabia Green Infrastructure Construction: 10-year market size & forecast in value terms

Saudi Arabia Construction Cost Structure Analysis: 10-year market size & forecast in value terms:

• Cost Analysis by Type (Material, Labour, Equipment, Others)
• By Material & Work Cost: It provides the cost outlook of material costs by type of materials used in construction (Cement, Steel, Sand, Aggregates, Bricks, Wood, Windows Glazing, Flooring, Plumbing, Electrical, Painting, Other Materials)
• By Labour Cost: It provides the cost outlook of labour costs (RCC Construction Work, Masonry and Plastering Work, Plumbing Work, Water Proofing Work, Carpentry Work, Electrical Work, Tile Fixing Work, CATV Antenna Points, Painting Work, Departmental Labour)
• By Type of Construction (New, Re-Development)
• By Material Cost: It provides the cost outlook of material costs by type of materials used in construction (Concreting Sand, Stone Aggregate, Ordinary Portland Cement, Reinforced Concrete (Grade 30 MPA), Reinforced Concrete (Grade 40 MPA), High Tensile Steel bars, Mild Steel Round Bars, Structural Steelwork, Plywood Formwork (1800*900*12mm), Clay Bricks)
• Type of Labour (Skilled vs. unskilled)

For more information about this report visit https://www.researchandmarkets.com/r/h2j61

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