As Vision 2030 nears its goals, the Kingdom's building and construction sector has grown exponentially over the past years, with a recent report stating that the value of total real estate and infrastructure projects launched and under delivery has exceeded US$1.25 trillion since the National Transformation Plan was launched in 2016.Since the launch of Saudi Arabia's National Transformation Plan in 2016, the value of projects commissioned has reached US$250 billion, according to the annual Saudi Mega Projects Report by real estate consultancy Knight Frank.

Real estate consultancy Knight Frank's Mega Projects in Saudi Arabia report.

More than half a million housing units

The number of planned residential units is expected to rise to 660,000, an increase of 30% over the past 12 months, contributing to the decline in residential sales nationwide, while planned office projects reached 6 million square meters.

More than half a million residential units

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$65.58 billion industry size

A report by global research firm Mordor Intelligence predicts that by 2028, the size of the construction market in the Kingdom will reach about 75.12 billion dollars, and the report indicates that the market size in 2023 is estimated at 65.58 billion dollars, and will witness rapid growth in the next few years.

This growth is attributed to the fact that the market size is estimated at 65.58 billion dollars in 2023. This growth is mainly due to increased spending on infrastructure in the Kingdom, including large-scale projects related to roads, bridges, airports, ports, railways, residential and commercial projects. The report also expects the country's population to increase, boosting demand for construction projects and increasing investment opportunities in this sector, which will also help boost the economy and provide new job opportunities for citizens.

The report also predicts a growing population in the country, which will boost demand for construction projects and increase investment opportunities in this sector, which will also help boost the economy and provide new job opportunities for citizens.

$825 billion market share

<Saudi Arabia has the largest building and construction market in the GCC, estimated at 33% of the total GCC market share, worth $825 billion, and the Kingdom is currently the top performing market as the Middle East construction industry recovers. Especially with Vision 2030 investing in housing and infrastructure development across the Kingdom, which will increase activity in the construction sector.

The Kingdom is currently the highest performing market as the construction industry in the Middle East recovers.

Building boom revives industry

On the same topic, consulting firm McKinsey predicted that Saudi Arabia will spend more than $175 billion annually on industrial and mega projects between 2025 and 2028 as the kingdom's construction boom reaches its peak.

McKinsey predicted that Saudi Arabia will spend more than $175 billion annually on industrial and mega projects between 2025 and 2028 as the kingdom's construction boom reaches its peak. <With nearly $1.3 trillion worth of major projects underway, such as the new high-tech city of Neom and Red Sea resorts off the kingdom's west coast, spending is expected to peak at $180 billion annually in 2026 and 2027, the consultancy said in a report.

Analysts said: "The resources needed to realize Saudi Arabia's new construction ambitions over the next decade are enormous. The projected annual contract value is three times the historical average, rising from $50 billion to $150 billion."

Analysts said: “The resources needed to realize Saudi Arabia's new construction ambitions over the next decade are enormous.

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Infographic

Building and Construction SectorGrowth Achieves Vision Goals

$1.25 trillion worth of real estate projects since the launch of the vision in 2016

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$250 billion worth of costly real estate projects.

65.58 billion dollars the size of the sector in 2023.

75.12 billion dollars the size of the sector in 2028.

660,000 housing units expected.

6 million square meters of commercial space.

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175 billion dollars annual spending on industrial and mega projects.

1.3 trillion dollars worth of megaprojects.

150 billion dollars worth of expected annual contracts.

<175 thousand companies operating in the contracting sector. <4 million workers in the sector.