Saudi Arabia is on track to clinch the title of the leading construction market worldwide, with substantial financial investments channeled into initiatives designed to revolutionize and broaden the scope of its economy. This development has been identified by Knight Frank, a global real estate consultancy firm.
The nation’s overall value of construction output is projected to soar to $181.5 billion by the close of 2028. This marks a significant increase of nearly 30% from the figures recorded in 2023, as outlined in a recent report by the London-headquartered agency.
Driving this surge are investments in residential real estate and an array of massive projects, including those that are integral to Crown Prince Mohammed bin Salman’s strategic plan to wean the economy off its oil dependency. The success of this initiative, referred to as Vision 2030, hinges on accommodating a burgeoning population and attracting an upsurge of international visitors.
We are currently witnessing a historical transformation unfolding in Saudi Arabia with construction projects standing out in their design scale and value.
Mohamed Nabil, regional partner and head of project and development services for the Middle East and North Africa at Knight Frank, highlighted the unprecedented scale and innovation of these developments.
Ever since the inception of Vision 2030 eight years ago, the kingdom has embarked on projects valued in excess of $1.25 trillion, as per Knight Frank’s analysis.
Despite the fact that many projects are still in progress and some have undergone scaling back, the kingdom is accelerating efforts as the 2030 milestone rapidly approaches.
In 2023, the kingdom awarded construction contracts worth over $140 billion, with a substantial portion concentrated in Riyadh. The aim is to expand the capital’s population to 10 million inhabitants by the year 2030.
Riyadh is garnering attention as a critical hub in anticipation of hosting notable global events such as the World Expo in 2030 and potentially the World Cup in 2034.