GCC Construction Market to Hit USD 222.38 Billion by 2031 Amid Infrastructure Growth, Green Building Initiatives, and Modular Construction Expansion

Mordor Intelligence has published a new report on the GCC construction source market, offering a comprehensive analysis of trends, growth drivers, and future projections.

GCC Construction Market Outlook

According to Mordor Intelligence, the GCC construction market size was valued at USD 175.24 billion in 2025 and is estimated at USD 182.34 billion in 2026, projected to reach USD 222.38 billion by 2031, registering a CAGR of 4.05%. This steady market growth reflects continued infrastructure investment, housing development, and economic diversification initiatives across Gulf countries. Governments are prioritizing transport networks, tourism infrastructure, and urban development programs, strengthening the GCC construction industry outlook.

The GCC construction market share is strongly influenced by national development strategies, including Saudi Arabia's Vision 2030 and the UAE's urban planning initiatives. These programs focus on expanding transportation corridors, modernizing cities, and supporting economic diversification beyond hydrocarbons. The GCC construction industry is also benefiting from growing participation from international contractors, who contribute technical expertise and project management capabilities.

Report overview: https://www.mordorintelligence.com/industry-reports/analysis-of-the-construction-industry-in-gcc-countries-industry?utm_source=openpr

GCC Construction Growth Drivers

Mega Infrastructure Projects Supporting GCC Construction Market Growth

Large-scale infrastructure programs remain a key driver of GCC construction market growth. Governments across the region are investing in transportation systems, urban infrastructure, and tourism projects to strengthen economic competitiveness. Major railway networks, road expansions, and urban mobility projects are creating steady demand across the GCC construction industry. Infrastructure development is becoming a priority within the market forecast, as countries aim to improve connectivity and urban efficiency.

Sustainable Construction Practices Strengthening GCC Construction Industry

Sustainability is becoming a core component of GCC construction market trends. Governments have introduced building codes focused on energy efficiency, water conservation, and environmental performance. These regulations are influencing design, material selection, and construction planning across the GCC construction industry. Developers are incorporating energy-efficient systems, sustainable materials, and green building designs to meet regulatory requirements and reduce operational costs.

Modular and Modern Construction Methods Transforming Project Delivery

Modern construction techniques are becoming increasingly important in the GCC construction market. Modular construction, prefabrication, and off-site manufacturing are helping contractors improve efficiency and reduce project timelines. These approaches are improving project quality and supporting faster construction schedules. The GCC construction industry is adopting prefabricated components for residential, hospitality, and infrastructure projects.

Private Investment and PPP Models Enhancing GCC Construction

Private sector participation is increasing across the GCC construction market through public-private partnership models. These frameworks enable governments to attract private investment while sharing project risks and improving funding efficiency. Private investment is supporting the development of residential communities, infrastructure assets, and commercial facilities.

Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights: https://www.mordorintelligence.com/ja/industry-reports/analysis-of-the-construction-industry-in-gcc-countries-industry?utm_source=openpr

GCC Construction Market Segmentation

By Sector

Residential

Apartments / Condominiums

Villas / Landed Houses

Commercial

Office

Retail

Industrial and Logistics

Others

Infrastructure

Transportation Infrastructure (Roadways, Railways, Airways, Others)

Energy & Utilities

Others

By Construction Type

New Construction

Renovation

By Construction Method

Conventional On-Site Construction

Modern Methods of Construction (Prefabricated, Modular, etc.)

By Investment Source

Public Investment

Private Investment

By Geography

United Arab Emirates

Saudi Arabia

Oman

Qatar

Kuwait

Bahrain

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Key Players in the GCC Construction Market

Nesma & Partners Contracting

Albawani Group

ALEC Engineering and Contracting

Arabian Construction Company

ASGC Construction

Explore more insights on GCC construction competitive landscape: https://www.mordorintelligence.com/industry-reports/analysis-of-the-construction-industry-in-gcc-countries-industry/companies?utm_source=openpr

Conclusion

The GCC construction market forecast remains positive, supported by infrastructure expansion, urban development, and economic diversification strategies. Governments are continuing to invest in transportation systems, tourism infrastructure, and residential development, strengthening market growth.

Sustainable construction practices, modular construction methods, and increased private investment are improving efficiency across the GCC construction industry. These trends are helping contractors deliver projects more efficiently and meet changing regulatory requirements.

For more insights on GCC construction market, please visit the Mordor Intelligence page: https://www.mordorintelligence.com/industry-reports/analysis-of-the-construction-industry-in-gcc-countries-industry?utm_source=openpr

Industry Related Reports

Scandinavia Prefabricated Housing Construction Market

The Scandinavia prefabricated housing construction market is projected to expand from USD 6.07 billion in 2025 to USD 6.35 billion in 2026 and reach USD 7.92 billion by 2031, growing at a CAGR of 4.53% during 2026-2031. Growth is driven by rising demand for sustainable and energy-efficient housing, labor shortages in traditional construction, and increasing adoption of modular and offsite construction techniques to improve project efficiency and reduce timelines.

Get more insights: https://www.mordorintelligence.com/industry-reports/scandinavia-prefabricated-housing-market?utm_source=openpr

Saudi Arabia Construction Market Size

Saudi Arabia's construction market is valued at USD 82.80 billion in 2026 and is expected to reach USD 101.83 billion by 2031, registering a CAGR of 4.22% over the forecast period. Strong government investments under Vision 2030, along with large-scale infrastructure, tourism, and smart city projects such as NEOM and Red Sea developments, are significantly boosting construction activity and private sector participation.

Get more insights: https://www.mordorintelligence.com/industry-reports/construction-sector-in-the-kingdom-of-saudi-arabia-industry?utm_source=openpr

China Construction Market Trends

China's construction market is anticipated to grow from USD 4.85 trillion in 2025 to USD 5.03 trillion in 2026 and reach USD 6.01 trillion by 2031, at a CAGR of 3.65% during 2026-2031. Continued urbanization, government infrastructure stimulus, expansion of transportation networks, and increasing investment in green buildings and smart infrastructure are key drivers supporting sustained market growth.

Get more insights: https://www.mordorintelligence.com/industry-reports/china-construction-market?utm_source=openpr

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This release was published on openPR.