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More than 5,200 construction projects are currently ongoing in Saudi Arabia at a value of $819 billion, and the Kingdom’s construction market is expected to register a compound annual growth rate (CAGR) of 6% between 2019 and 2024, said a new report by ResearchAndMarkets.com.
The Saudi Arabian construction market is expected to witness significant growth and offer lucrative potential, due to its Vision 2030, NTP 2020, and several ongoing reforms to diversify away from oil.
The Vision 2030, NTP 2020 and private sector investment boost, and the ongoing reforms are likely to be the growth drivers for the Saudi construction market in 2018 and beyond.
“Currently, the country's economy is entering a post-oil era in which the kingdom's mega-cities, which are under construction, will provide the country's future growth,” the report maintained.
Saudi Arabia's Vision 2030, along with a significant investment in housing and infrastructure development promoted across the country by local authorities, are revitalizing the construction industry and generating interest in a growing number of international players.
According to the report, the urban construction sector is the largest contributor to the construction sector expansion, with 3,727 active projects valued at $386.4 billion.
The utility sector is the second largest contributor with 733 projects worth $95.6 billion, followed by transportation with 500 projects valued at $156.2 billion.
Some of the major urban construction projects in Saudi Arabia include the King Abdullah Security Compounds (Phase 5), and the Grand Mosque (Holy Haram Mosque expansion), each valued at $21.3 billion, the report added.
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Construction activity in Saudi Arabia to gain pace in 2020: RICS |
Saudi Arabia's construction sector to grow 5.5% this year: Fitch |
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