The building materials sector is witnessing significant growth, thanks to major projects across the Kingdom, the urban transformation in Saudi cities has increased the demand for building materials, and the figures indicate remarkable growth and huge opportunities as a key axis in the national development process.
Construction Materials Sector Catalysts
Catalysts for the building materials sector
The booming construction sector in the Kingdom is driven by a series of reasons, including huge infrastructure projects across the Kingdom, Vision 2030, which prioritizes urban development and thus increases the demand for building materials, and urban development through the establishment of new tourist and residential cities.
But the sector faces a number of challenges. <However, the sector faces a number of challenges, which may be an obstacle to its growth, including: Cost disparity as the increase in energy prices affects the prices of building materials, the existence of bottlenecks in some supply chains as a result of increased demand due to the implementation of a large number of projects, labor training and creating human cadres in the building materials industry is one of the challenges facing the sector.
Stats and Figures
Saudi Arabia ranks as one of the top ten countries in the world in terms of cement production capacity, domestic demand for cement in 2022 reached 47.3 million tons, and the size of the building materials market in Saudi Arabia in 2033 is expected to reach about $199 billion.
The building materials market in Saudi Arabia in 2033.
The General Authority for Statistics revealed that the construction cost index for June 2025 increased by 1.1% compared to the same period in 2024, due to equipment and machinery prices, although prices of basic materials decreased by 0.7%.
