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Saudi Arabia has embarked on an ambitious plan to build mega projects and transform its economy. Since 2016, construction contracts worth $250 billion have been awarded.
At this week’s real estate gathering in Riyadh, Cityscape Global Exhibition, deals worth over $29 billion were signed.
Faisal Al-Khamissi, board chairman of the Saudi Federation For Cybersecurity, Programming and Drones, the founding partner of Tahaluf, noted one of the key outcomes from the event was over 3,800 housing units being booked for construction via the National Housing Company, totaling $1.01 billion.
He added that the economic impact on Riyadh regarding hospitality services, flights, and hotels exceeded $25 million.
According to a report by the US-Saudi Business Council, the Saudi Arabian construction sector experienced significant growth in 2022, with the value of awarded contracts returning to pre-pandemic levels.
The report reveals that the total value of awarded contracts in 2022 was $51.3 billion. The real estate sector accounted for the largest share of construction spending, while NEOM was the region that received the highest investment.
There was a 35% increase in the value of awarded contracts last year compared to the previous year.
The private sector’s increasing contribution to Saudi Arabia’s diversification strategy is aiding in the rebound of the construction sector to pre-pandemic periods.
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