Saudi Arabia Construction Market Is Expected to Reach USD 135.6 Billion by 2033, Grow at a CAGR Of 3.7%

Saudi Arabia Construction Market Overview

Market Size in 2024 : USD 97.8 Billion

Market Size in 2033: USD 135.6 Billion

Market Growth Rate 2025-2033: 3.7%

According to IMARC Group's latest research publication,"Saudi Arabia Construction Market Size, Share, Trends and Forecast by Sector and Region, 2025-2033", The Saudi Arabia construction market size was valued at USD 97.8 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 135.6 Billion by 2033, exhibiting a CAGR of 3.7% from 2025-2033.

How AI is Reshaping the Future of Saudi Arabia Construction Market

Government Initiatives: Vision 2030 weaves AI into 70% of its strategic goals, sparking innovations in Saudi construction like smart tech for mega-projects such as NEOM to drive efficiency and growth.
Investment Boosts: The $5 billion tie-up between AWS and HUMAIN is rolling out AI infrastructure, helping construction teams in Saudi tap into cloud tools for smoother operations and smarter decisions.
Safety Enhancements: Firms like viAct are bringing AI video analytics to Saudi sites, spotting risks in real time to cut accidents and keep projects compliant with local safety rules.
Industry Adoption: With 57% of pros calling AI the hottest trend, Saudi construction is embracing predictive tools and real-time tracking to optimize workflows and tackle big builds effectively.
Company Innovations: Partnerships such as NVIDIA and HUMAIN are fueling AI talent and systems in Saudi, revamping construction through digital twins for better planning and resource use.

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Saudi Arabia Construction Market Trends & Drivers:

Saudi Arabia's construction boom is the government's push under Vision 2030 to diversify the economy and reduce oil dependence. Mega-projects like NEOM, the Red Sea Project, and Qiddiya are injecting billions into the sector, with NEOM alone budgeted at $500 billion. The government is also fast-tracking approvals and offering incentives for private sector participation, sparking a surge in contracts. For example, the National Infrastructure Fund plans to invest over $50 billion in roads, utilities, and logistics, creating a ripple effect across residential and commercial construction as demand for supporting infrastructure grows.

Another key factor is the rising demand for affordable housing, fueled by a young, growing population and increased mortgage accessibility. The Saudi Real Estate Refinance Company recently expanded its portfolio to $8 billion to support homeownership, while developers like ROSHN and Al Akaria are launching large-scale residential communities. Over 50,000 new housing units are planned in Riyadh alone, catering to middle-income buyers. This residential boom is also driving ancillary construction-schools, hospitals, and retail hubs-as urban areas expand rapidly to meet the needs of a population where 70% are under 35.

Sustainability is emerging as a critical trend, with green building regulations tightening and renewable energy projects gaining traction. The Saudi Green Initiative aims for net-zero carbon buildings by 2040, pushing developers to adopt LEED and Mostadam certifications. ACWA Power and other firms are investing heavily in solar-powered construction, like the $1.5 billion Sudair Solar Plant, which will supply clean energy to new urban developments. Additionally, modular and off-site construction methods are rising, cutting waste and speeding up projects-a shift welcomed in a market where delays have traditionally been a challenge. This green pivot is reshaping materials, design, and even labor skills in the industry.

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Saudi Arabia Construction Industry Segmentation:

The report has segmented the market into the following categories:

●Analysis by Sector:
●Residential
●Commercial
●Industrial
●Infrastructure (Transportation)
●Energy and Utilities Construction

●Regional Insights:
●Northern and Central Region
●Western Region
●Eastern Region
●Southern Region

Competitive Landscape:

●AFRAS
●AL Jazirah Engineers & Consultants
●Al Latifa Trading and Contracting
●Bechtel Corporation
●Fluor Corporation
●Gilbane Inc.
●Jacobs
●Tekfen Construction

Recent News and Developments in Saudi Arabia Construction Market

August 2025: A significant shift toward sustainability is evident, with a 70% increase in green building projects. This is being driven by the adoption of eco-friendly materials like recycled concrete and smart glass that adjusts to light and heat, along with energy-efficient systems like solar panels.
August 2025: Modular and prefabricated construction is gaining traction, with its use in major projects reducing project timelines by up to 50%. This method involves building components off-site for rapid assembly, leading to greater precision and less waste.
August 2025: The integration of digital technologies is transforming project management. The use of Building Information Modeling (BIM) for 3D modeling and AI for tasks like project planning and risk assessment is becoming standard, improving efficiency and collaboration.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

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IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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