The specialized contracting sector in Saudi Arabia, especially the electrical, plumbing and finishing (MEP) sector, is witnessing exceptional growth in recent years, driven by the size of the major projects implemented by the state as part of the Kingdom's Vision 2030, with efforts to regulate the market and raise the efficiency of workers and the quality of execution.

Record growth for the specialized contracting sector.

Record growth for the specialized contracting sector

According to the Saudi Contractors Authority, the size of the contracting market in the Kingdom reached about 280 billion riyals annually during 2023-2024, with expectations that it will jump to one trillion riyals annually in 2025, an unprecedented level that reflects the great momentum in the sector, according to data issued by the Saudi Contractors Authority.

In the field of specialized contracting, specialized reports indicate that the size of the mechanical, electrical and plumbing services market in the Kingdom was estimated at $13.2 billion in 2024, equivalent to 50-55 billion riyals, with expectations to double to $27.4 billion by 2030, with a compound annual growth rate of 13.3%, one of the highest rates in the construction sector in the region.

Specialized reports indicate that the size of the mechanical, electrical and plumbing services market in the Kingdom was estimated at $13.2 billion in 2024, equivalent to 50-55 billion riyals, with expectations that it will double to reach $27.4 billion by 2030.

Project mobility revives demand for precision specialties

Official data confirms that the first four months of 2025 witnessed the implementation of projects worth about 34.38 billion riyals, while July alone recorded the award of projects worth 33.6 billion riyals across the Kingdom, of which the Eastern Province accounted for the largest share of 27.3 billion riyals, which contributed to increasing demand for companies specialized in finishing works, electrical and mechanical systems, water and sewage networks, as they are critical elements in the quality of buildings and the sustainability of their operation.

Demand for companies specialized in finishing works, electrical and mechanical systems, water and sewage networks, as they are critical elements in the quality of buildings and the sustainability of their operation.

Rising Costs and Efficiency Challenges

The construction cost index recorded an annual increase of 0.7% in July 2025 compared to the previous year, due to the rise in the cost of materials and the value of wages, according to data released by the General Authority for Statistics, while the Saudi Contractors Authority confirmed the existence of a gap between the huge volume of projects and available operational capabilities, stressing the market's need for more specialized companies and qualified technical personnel, especially in the fields of electricity, plumbing and finishes.

The Saudi Contractors Association (SCA) stressed the need for more specialized companies and qualified technical personnel, especially in the fields of electricity, plumbing and finishes.

Towards turning construction into an industry

The Saudi Contractors Authority is working to transform the sector by turning construction into an integrated industry by standardizing standards, supporting professional qualification, and enhancing compliance, which is expected to reflect positively on specialized contracting companies, especially those that adhere to high standards in electrical, plumbing, and precision finishes.

Promising prospects... and a market preparing for a new phase

Industry experts believe that the coming years will witness vast opportunities for specialized contractors driven by the continued growth in housing projects and commercial complexes, with the expansion of MEP work as the largest operational component of projects, as well as the trend of developers towards energy efficiency, building management systems and luxury finishes, with a high demand for advanced engineering systems and smart buildings.