Riyadh - Mohammed Jamous
Saudi Arabia is one of the largest markets for the construction sector in the Middle East and one of the fastest growing in the world. This sector in the Kingdom has witnessed a major paradigm shift in recent decades as advanced architecture, reinforced concrete structures, and modern construction technology have replaced traditional construction methods, and this vital sector achieves sustainable development and is the economic backbone for many economic sectors.
Effective contribution to GDP
The building and construction sector derives its strength from its steady growth during the previous years, and its effective contribution to the GDP, which reached approximately 151 billion riyals in 2018, accounting for 6.2% of the Kingdom's GDP, to jump to 11.6% in the last year 2021, while the contribution of real estate activities amounted to 14.50%, which confirms the strength of the sector, in addition to the job opportunities it provides, estimated at more than 144,000 Saudis in all its economic activities.
Projects worth 4.87 trillion riyals
The Kingdom is witnessing an unprecedented boom in construction and megaprojects that will reshape the future of the Kingdom and the region. Mega projects funded by the Public Investment Fund (PIF), royal authorities, relevant ministries, the private sector and the construction sector are leading the construction sector towards a plethora of opportunities and mega projects valued at more than SAR 4.87 trillion in the pipeline; the private sector is experiencing a sustainable and resilient recovery, leading the construction sector towards major business opportunities; public and private sector housing projects are booming on a large scale in an effort to bridge the gap between housing supply and demand, providing an opportunity for the construction sector in excess of SAR 3.75 billion.
The Kingdom is witnessing an unprecedented building and construction boom and mega projects worth more than SAR 4.87 trillion are in progress.
Technological development has boosted construction materials
Technological development has contributed to the strengthening and revitalization of the construction sector; through the production of a wide range of building materials, including cement, concrete, bricks, ceramics and glass, as well as composite materials, the sector provides a large number of employment opportunities; construction activity accounts for 35% of approved work permits, as well as boosting export earnings, a key driver of productivity and economic growth.
The construction sector is a major driver of productivity and economic growth.
