Saudi Arabia Construction Market Size To Exceed USD 138.4 Billion By 2034 | CAGR of 3.52%

Saudi Arabia Construction Market Overview

Market Size in 2025: USD 101.4 Billion

Market Size in 2034: USD 138.4 Billion

Market Growth Rate 2026-2034: 3.52%

According to IMARC Group's latest research publication, "Saudi Arabia Construction Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2026-2034", The Saudi Arabia construction market size was valued at USD 101.4 Billion in 2025. Looking forward, IMARC Group estimates the market to reach USD 138.4 Billion by 2034, exhibiting a CAGR of 3.52% during 2026-2034.

How AI is Reshaping the Future of Saudi Arabia Construction Market

AI-powered Building Information Modeling systems streamline project planning and design coordination in Saudi Arabia, reducing errors and improving collaboration among stakeholders across mega-projects.

● Smart construction site monitoring uses AI-driven drones and sensors to track progress, ensure worker safety, and optimize resource allocation in real-time across NEOM and other developments.

● AI predictive maintenance algorithms monitor equipment performance on Saudi construction sites, preventing costly breakdowns and minimizing project delays through early fault detection.

● Machine learning optimizes material procurement and supply chain logistics for Saudi developers, reducing waste and ensuring timely delivery of resources to sprawling project sites.

● AI-enhanced quality control systems automatically inspect construction work against specifications, ensuring compliance with Saudi building standards and Vision 2030 sustainability requirements.

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How Vision 2030 is Transforming Saudi Arabia Construction Industry

Saudi Arabia's Vision 2030 is rapidly transforming the construction industry through massive investments in mega-projects like NEOM, The Red Sea Project, and King Salman International Airport, driving growth across residential, commercial, industrial, and tourism sectors. The initiative promotes sustainable building, smart city solutions, and advanced techniques such as modular construction and 3D printing. Strong public-private partnerships are attracting global expertise, improving construction quality, and modernizing infrastructure with projects like the Riyadh Metro. Vision 2030 also accelerates housing development to meet homeownership goals, boosts job creation, and strengthens local construction capabilities, positioning the Kingdom as a regional leader in innovative and sustainable construction.

Saudi Arabia Construction Market Trends & Drivers:

Saudi Arabia's construction market is experiencing robust growth, driven primarily by the government's Vision 2030 reform plan which focuses on economic diversification and reducing reliance on oil revenues. Mega-projects such as NEOM, Qiddiya, The Red Sea Project, and other giga-developments are at the core of this transformation, driving significant demand for construction activities across sectors including real estate, infrastructure, tourism, and entertainment. These ambitious projects, with investments totaling trillions of Saudi Riyals, are designed as catalysts for economic growth and position Saudi Arabia as a global hub for business, culture, and innovation. The Public Investment Fund plays a crucial role in financing these transformative initiatives, creating cascading effects throughout construction-related industries including engineering, procurement, construction services, building materials, equipment supply, and workforce development.

The rapid expansion is further propelled by increasing housing development driven by Saudi Arabia's growing population and urbanization trends. The government, through the Ministry of Municipal and Rural Affairs and Housing, is implementing comprehensive policies and programs to enhance housing supply, improve affordability, and foster public-private partnerships in the residential sector. Major housing projects are being rolled out in Riyadh, Jeddah, and other cities to deliver thousands of affordable and luxury housing units, developing integrated communities with modern amenities. Infrastructure development remains a critical growth driver, with substantial investments focused on improving connectivity and modernizing transport systems through world-class rail, road, and airport projects including the Riyadh Metro, Saudi Landbridge Railway, and airport expansions. The increasing adoption of advanced construction technologies such as Building Information Modeling, modular construction, and 3D printing is accelerating project timelines while reducing costs. Additionally, the growing emphasis on green building practices and sustainability standards, supported by government regulations and international collaborations, is reshaping construction methodologies and material selection across the Kingdom, aligning with Vision 2030's environmental goals and positioning Saudi Arabia as a leader in sustainable urban development.

Saudi Arabia Construction Market Industry Segmentation:

The report has segmented the market into the following categories:

Sector Insights:

● Residential
● Commercial
● Industrial
● Infrastructure (Transportation)
● Energy and Utilities Construction

Breakup by Region:

● 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

Access the Latest 2026 Data & Forecasts: https://www.imarcgroup.com/checkout?id=16893&method=1315

Recent News and Developments in Saudi Arabia Construction Market

● August 2025: The Saudi Arabian government launched a tripartite agreement between the Real Estate Development Fund, the National Housing Company, and the Saudi National Bank to deliver residential units across nationwide projects, supporting Vision 2030 homeownership targets.

● October 2025: Major progress was reported on Oxagon industrial city development as part of NEOM, with construction utilizing modern techniques including modular building and advanced water management systems, while the Oxagon Data Center project advanced with partnerships from global technology leaders.

● November 2025: Retal Urban Development Company signed an agreement with the National Housing Company to develop a residential project in Al-Fursan suburb in Riyadh, covering design, marketing, financing, construction, and delivery of residential units and infrastructure development with completion targeted through the development period.

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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