Saudi Construction Sector Boom: Opportunities Beckon Global Firms
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. Further affirming this positive market outlook are market estimates that Saudi Arabia will be valued at $181.5 billion by 2028.
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
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.
As the country prepares to host the FIFA World Cup 2034 and Riyadh Expo 2030, several key developments are being built from scratch, driving growth in tourism and ancillary industries as well as promoting immediate and legacy effects that persist long after the event is over.
The infrastructural development projects happening as a result point towards ample opportunities for global firms in Saudi Arabia to benefit from the momentum of securing major commercial opportunities and advancing operational efficiencies. The economic dividends of the Riyadh Expo are expected to catalyze a construction boom in Riyadh, with the sector growing at a rate of 5.7% annually.
As the Kingdom gears up for various sporting events that occur ahead of FIFA World Cup 2034, there's an immediate need to upgrade the existing stadiums, fan zones, and other facilities to increase their capacity to accommodate more spectators.
This is to say, the Kingdom has become one of the most dynamic and fastest-growing building markets globally, spurred on by major construction happening on the ground in preparations for such mega-events.
These projects further boost its global attractiveness as an ideal host of large-scale events and push the growth of its non-oil economy.
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.
In hospitality, for instance, the giga projects such as Red Sea, Diriyah, Amaala, Qiddya, and NEOM collectively make up 73% of the hotel supply pipeline. The largeness of the market opportunity creates buoyant investment sentiment and sets a new benchmark for construction development initiatives worldwide.
Want to learn more? Download the construction sector guidebook here.
Global Companies Ramp Up Expansion in Saudi Construction Growth Saga
Driven by the rising country's stature as a business and investment hub, Saudi Arabia has become the destination of choice for global players, including Grankraft, part of AstroLabs’ expansion network.
The global leader’s already made significant contributions to Saudi Arabia’s construction boom, as evidenced by their work on the Sheybarah Hotel at The Red Sea Development.
Within construction, smart cities are a vital part of Vision 2030 for urban sustainable development and provide a vital industrial corridor for companies like Imbraria to set up an operational base in Saudi. Impararia is another member of AstroLabs' expansion network.
Impararia’s global impact and versatile expertise are a perfect fit for Saudi Vision 2030-led transformation, as it focuses on enhancing urban living through technology and design.
Besides Impraria and Grankraft, AstroLabs’ expansion network also includes Waagner Biro Steel and Glass. It has recently entered the Saudi market, which Jason Wilson, the general manager, referred to as “too significant to overlook.”
Highlighting the necessity of having a robust, physical foothold in Saudi Arabia, Wilson previously noted that major events like the FIFA World Cup 2034 and Riyadh Expo 2030 are expected to greatly enhance the construction sector in the country over the coming decades.
Going forward, Saudi Arabia will maintain its competitive position as the world's leading hub for innovators in construction, considered the Kingdom’s second-largest non-oil sector and one of the fastest-growing.
As such, AstroLabs’ on-ground team continues to play a key role in enabling the global firm to successfully set up a business in the Kingdom.
The support offered by the team has proven advantageous in helping companies navigate the intricacies of the Saudi construction sector and build meaningful connections with industry partners, further entrenching its presence in the local market.
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.
