Saudi Arabia has embarked on an ambitious transformation to economic diversification and wean itself off oil dependence.   Construction plays a pivotal role in this strategy. It is currently building some of the world’s most ambitious infrastructure projects driven by substantial investments in transportation, renewable energy, housing, and tourism projects.

Over the next few years, to solidify its commitment, the country is preparing to award a staggering $1.8 trillion in construction projects.

“The largest opportunities involve the construction sector,” said Investment Minister Khalid Al-Falih, highlighting the $3 trillion in total investment potential across various sectors. These projects, he emphasizes, are “targeted in the Kingdom’s Vision 2030 and intended to build a sustainable economy.”

Since launching its ambitious mega-project plan in 2016, the kingdom has already seen $1.25 trillion worth of real estate and infrastructure projects, with $250 billion in construction contracts awarded.

The construction boom is fueled by sustained economic diversification efforts, with the market size projected to grow by 4% annually between 2024 and 2027. 

Saudi Arabia’s construction landscape is undergoing a dynamic transformation. One notable project is The Line, a smart city initiative by NEOM. Other key projects are ROSHN’s SEDRA, Jeddah Central, and Diriyah Gate.

This construction surge represents a significant step towards Saudi Arabia’s economic transformation. With the building and construction sector contributing 6% to the GDP, it’s poised to become the second-largest non-oil sector in the country.

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