Saudi Arabia’s $1.5 Trillion Construction Boom: How Global Firms Can Find The Right Opportunities

Construction sector in Saudi is expanding rapidly – find out more in this article.

Saudi Arabia's construction sector is set for unprecedented growth as the Kingdom stands on the threshold of transformative opportunity to become the world's largest construction site.

Regionally, Saudi Arabia leads the MENA region's construction project pipeline, holding 39% of the region's projects worth $1.5 trillion. In fact, Saudi Arabia’s construction sector is expected to be valued at $181.5 billion by 2028, driven by groundbreaking giga projects, mega-events like the Riyadh Expo 2030, and a nationwide push toward Vision 2030 goals.

To help construction firms identify untapped opportunities in the booming sector, the Gulf's leading business expansion platform, AstoLabs, has unveiled the Construction Sector Guidebook that sheds light on the untapped opportunities in this space.

Growth Rate in the Construction Sector Position Saudi as a Global Benchmark

Saudi’s construction market is growing at a 5.37% annual rate, making it one of the fastest-growing globally. The rapid pace of construction projects across the Kingdom presents unique growth prospects for global firms to participate in Saudi infrastructural development. Those who act quickly stand to benefit the most.

The preparation for hosting Riyadh Expo 2030 and the FIFA World Cup 2034 is not only creating immediate demand but also reshaping its infrastructure for long-term growth:

• Riyadh Expo 2030: Expected to generate billions in economic dividends, this mega-event is sparking a citywide transformation. Projects include new exhibition centers, transportation networks, and commercial developments.
• FIFA World Cup 2034: Upgrading existing stadiums, fan zones, and accommodation facilities will create significant opportunities for global contractors.

These projects are expected to be key drivers of tourism, real estate, and ancillary industries, and will push the growth of the Kingdom’s non-oil economy well beyond the events themselves.

Mega-Projects are Shaping Saudi Arabia’s Future Construction Growth

Providing the necessary thrust for the Saudi ongoing building spree are giga projects, largely considered the zenith of the construction sector in Saudi Arabia, prompting contractors from all over the world to tap into an active project pipeline across various construction subsegments.

These flagship developments are integral to the Kingdom’s Vision 2030 and represent opportunities for contractors and suppliers, such as:

• NEOM: A $500 billion futuristic smart city with sustainability at its core.
• The Red Sea Project: A luxury hospitality initiative spanning over 28,000 km², including resorts, airports, and ecological reserves.
• Diriyah: A UNESCO heritage site reimagined as a cultural and tourism hub.
• Qiddiya: Saudi’s emerging entertainment capital featuring theme parks, performance venues, and sports facilities.

These projects alone account for 73% of Saudi’s hospitality pipeline, representing billions in opportunities for global firms to secure major contracts.

Pro Tip: Learn how to align your business strategy with Saudi’s giga projects by downloading the AstroLabs Construction Sector Guidebook.

Key Opportunities Across Saudi Arabia’s Expanding Construction Supply Chain

Driven by the rising country's stature as a business and investment hub, Saudi Arabia has become the destination of choice for opportunities across the entire construction value chain. From smart cities to hospitality pipelines, global firms are finding new ways to contribute to and benefit from the Kingdom’s initiatives under Vision 2030.

Key Areas of Growth

Smart City Projects

Smart city initiatives are redefining urban living with cutting-edge technologies. Companies such as Impararia, a member of AstroLabs’ expansion network, are playing a pivotal role in designing and implementing sustainable solutions that align with Saudi Arabia’s urban development goals.

Hospitality Supply Chains

Giga projects such as the Red Sea Development create immense opportunities for contractors, suppliers, and service providers. Global leaders like Grankraft, another member of AstroLabs’ expansion network, have contributed significantly to the Red Sea Project by delivering critical components for the iconic Sheybarah Hotel.

Specialised Materials and Infrastructure Solutions

The demand for advanced construction materials, sustainable solutions, and innovative engineering techniques has surged. Firms like Waagner Biro Steel and Glass, also part of AstroLabs’ network, are supplying cutting-edge materials for landmark projects.

AstroLabs’ on-ground team continues to play a key role in enabling the global firm to successfully set up a business in the Kingdom.

Jason Wilson, General Manager at Waagner Biro, calls Saudi Arabia’s construction market “too significant to overlook”.

Navigate the Saudi Construction Market with AstroLabs

The Kingdom’s construction market offers unparalleled opportunities for growth and innovation. Whether you’re a contractor, supplier, or part of the value chain, AstroLabs can help you navigate this dynamic landscape with confidence.

The support offered by AstroLabs team has proven advantageous in helping companies navigate the intricacies of the Saudi construction sector and build meaningful connections with industry partners.

Access the AstroLabs Construction Guidebook here to get exclusive insights and practical tips on how foreign companies can successfully complete their business setup in Saudi Arabia.

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