Saudi Arabia’s construction industry booms with $1.5 trillion project pipeline

Photo by ekrem osmanoglu on Unsplash
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A new report reveals Saudi Arabia’s construction sector is booming, with a staggering $1.5 trillion in unawarded projects. This surge is driven by Vision 2030, the kingdom’s economic diversification plan, and infrastructure development for the upcoming Expo 2030.

Saudi Arabia dominates the Middle East construction market, holding a 39% share of the region’s $3.9 trillion pipeline. Construction assets make up the bulk (62%) of this internal pipeline, while transportation and infrastructure projects account for the remaining 38%.

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Despite global challenges, the report maintains a positive outlook. Although inflation and geopolitical tensions pose risks, awarded projects in 2023 reached $97 billion, a significant increase from 2022. This represents just 6% of the total potential, highlighting vast future opportunities.

Economic growth, population rise, and modernization fuel this construction boom. Tourism and leisure/hospitality sectors are particularly strong, contributing significantly to awarded projects. However, potential constraints like rising costs, labor shortages, and resource limitations could impact future progress.