Saudi Arabia: Construction Surges to $141.5 Billion in 2019, Fuelled by Ambitious Developments

Saudi Arabia is currently witnessing a significant surge in construction activities, with the value of construction outputs across various sectors reaching $141.5 billion, up 4.3% from the previous year. The Kingdom’s construction industry is being closely monitored by global real estate consulting firm Knight Frank, who has observed the country’s remarkable transformation into large-scale, high-value projects with unique designs.

The government has set a goal to attract investments worth over $3 trillion by 2030, and this objective was highlighted at the first Gulf-China Cooperation Forum for Industries and Investments. Since the launch of the National Transformation Plan in 2016, the total budgeted value of real estate and infrastructure projects in Saudi Arabia has surpassed $1.25 trillion, fueled by Vision 2030.

The residential sector is currently leading in terms of construction production value in Saudi Arabia, accounting for 31% of total production value in 2028. Energy and utilities follow closely behind. By then, the Kingdom’s total construction output across all sectors is expected to reach $181.5 billion, solidifying its position as the largest construction market globally.

Knight Frank’s analysis of residential construction costs in Saudi Arabia reveals a range of costs per square meter for different residential projects, including those aimed at delivering 660,000 homes by 2030. The estimated cost for these homes is at least $175 billion.

New megacities and Giga projects are emerging in Saudi Arabia as part of Vision 2030, transforming its urban landscape. These projects are accelerating as the deadline approaches and over SAR 1.25 trillion worth of projects remain yet to be delivered.

In conclusion, Saudi Arabia’s construction sector is undergoing rapid growth and transformation driven by ambitious development projects like Vision 2030 and government initiatives such as National Transformation Plan. The country is well-positioned to become a global leader in construction activities by attracting significant investments and reshaping its urban landscape accordingly.