The commercial construction sector in Saudi Arabia is experiencing strong growth, with the market expected to rise from $72.1 billion in 2024 to $98.61 billion by 2030. This expansion is largely fueled by Vision 2030, a national strategy aimed at diversifying the economy and reducing reliance on oil revenues. Major government funding for infrastructure, tourism, and urban development is creating opportunities in commercial real estate, retail, and mixed-use projects.
Landmark developments such as NEOM, The Red Sea Project, and Qiddiya are attracting both local and international investment, driving demand for innovative construction solutions. Changes in regulations and a rise in public-private partnerships are encouraging further market activity. The growth of e-commerce and shifting consumer expectations are increasing the need for modern logistics centers and smart commercial spaces, while sustainability is becoming a priority through green building practices and advanced technologies.
The influx of expatriates and the establishment of regional headquarters by global firms are boosting demand for high-quality office, retail, and hospitality spaces. Despite ongoing challenges like supply chain issues and fluctuating material costs, the sector remains resilient thanks to strong government backing and active private sector involvement.
Key market drivers include Vision 2030’s focus on infrastructure megaprojects and the easing of foreign investment regulations, which have drawn significant foreign capital. Expanded government spending on transport and smart city initiatives is also making the market more attractive to international businesses.
Tourism is a growing force, supported by a $10 billion investment to develop resorts, hotels, and entertainment venues to serve rising visitor numbers. However, the sector faces hurdles such as supply chain disruptions and inflation, prompting companies to invest in local manufacturing and strengthen procurement strategies.
Trends point to a rise in mixed-use developments that combine residential, retail, and entertainment spaces, reflecting both changing urban lifestyles and the goals of Vision 2030. Leading construction firms like Kabbani Construction Group, Almabani General Contractors, and AlKifah Contracting Company are shaping the industry through strategic investments and innovation.
Overall, the outlook for Saudi Arabia’s commercial construction market remains positive, with robust growth expected as the country continues to transform its business and urban landscape.