This growth comes in conjunction with the accelerated implementation of major projects in Riyadh, the Red Sea, Jeddah and the Eastern Province, resulting in high demand for iron, timber, aluminum and other building materials.

Market exceeds 400 billion riyals annually
According to experts in the building materials industry, the size of the construction sector in the Kingdom exceeds 400 billion riyals annually, which reflects the size of the growing activity in the local market.They point out that this large volume is distributed in three main segments, where basic materials such as iron, wood and aluminum account for about 200 billion riyals, while the supporting services sector such as engineering supervision and project management is estimated at about 140 to 150 billion riyals, while the infrastructure and equipment transportation sector accounts for about 70 billion riyals, which reflects the intertwining of the value chain in the Saudi construction sector.
These figures come in light of what is described as the "golden age of the construction materials sector in the Kingdom,” driven by the size of mega projects being implemented in various regions.

These figures come in light of what is described as the ”golden age of the building materials sector in the Kingdom," driven by the size of the mega projects being implemented in various regions.

Regional Leading Position
The value of Saudi Arabia's construction sector is estimated to exceed US$91 billion, making the Kingdom one of the largest construction markets in the Middle East, with continued growth expected in the coming years as government and private projects expand. The market for basic construction materials - such as steel, timber and aluminum - is estimated at SAR 200 billion, reflecting the significant weight of these materials within the building and construction ecosystem.

Saudi Arabia's building and construction sector is estimated to be worth more than US$91 billion, making the Kingdom one of the largest construction markets in the Middle East.

Iron is the backbone of the building materials industry
The annual consumption of iron in the Kingdom is about 14 million tons, of which about 10 million tons are produced locally, while about 4 million tons are imported from abroad to cover the growing demand.
The iron sector is divided into three main types: Long products used in construction and building, which are growing at a rate between 4% and 5% per year, flat products, which are experiencing higher growth of over 7% per year driven by industrial demand, as well as special steel used in advanced industries such as defense, energy and aerospace.
The increasing demand for steel is directly related to major projects in Riyadh, Red Sea projects and the expansion of Jeddah and Eastern Province, which makes the sector in a state of continuous growth despite global challenges associated with raw material prices.

The growing demand for steel is directly related to the major projects in Riyadh, the Red Sea projects and the expansion of Jeddah and the Eastern Province, which makes the sector in a state of continuous growth despite the global challenges associated with raw material prices.

Size of industrial investments
According to the report of the National Industrial and Mining Information Center of the Ministry of Industry and Mineral Resources, the volume of investment in the building materials sector amounted to about 336 billion riyals (89.6 billion dollars in 2023, compared to 333 billion riyals in 2022, recording a growth of 1%.
The number of industrial licenses in the sector increased to 183 licenses in 2023 compared to 132 licenses in the previous year, with a growth rate of 39%, reflecting the high attractiveness of the sector for industrial investment.<The Ministry of Industry and Mineral Resources report showed that the number of building materials factories increased to 2065 factories in 2023 compared to 1955 factories in 2022, a growth rate of 6%.
The number of workers in the sector increased to 144.7 thousand workers compared to 134 thousand workers, a growth rate of 8%, while the number of Saudi workers reached about 40.8 thousand workers compared to 34.8 thousand workers, a growth rate of 17%.The number of factories inside industrial cities increased to 483 factories compared to 450 factories, while the number of factories outside industrial cities reached 1582 factories compared to 1505 factories, reflecting a wide geographical spread of the sector within the Kingdom.

The number of factories outside industrial cities reached 1582 factories compared to 1505 factories, reflecting a wide geographical spread of the sector within the Kingdom.

Organizing and developing the sector through new initiatives
In the framework of developing the building materials sector, the Ministry of Industry and Mineral Resources launched the ”Coordinating Council for Mining Complexes" initiative to promote integration between the public and private sectors in building materials quarries, raise investment and operational efficiency and improve the business environment. The ministry also announced the establishment of the non-profit Building Materials Manufacturers Association, which aims to develop technical specifications for production, support local factories to obtain international quality certificates such as ISO, CE and SASO, promote innovation and technology transfer, expand export opportunities, and support small and medium factories.

As part of the development of the building materials sector.

A sector supported by Vision 2030
The building materials sector is directly linked to the implementation of Saudi Vision 2030 projects, as it is mainly dependent on it in the implementation of housing, infrastructure, economic and tourism projects.
These figures and efforts confirm that the Saudi market is experiencing an unprecedented expansion phase, driven by mega projects, which makes the demand for building materials continue at a strong pace in the coming years, especially with the expansion of Riyadh and the Red Sea and Jeddah projects.

Building materials sector is directly linked to the implementation of Saudi Vision 2030 projects, as it is mainly dependent on it in the implementation of housing, infrastructure, economic cities and tourism projects.