Growth in Saudi Arabia’s construction activity shows no signs of slowing down. The construction output value for the construction, transport, power, oil and gas, industrial, water, and chemical sectors reached $148 billion in 2024, marking a 4.6 percent increase compared to the same period last year, according to the latest Saudi Arabia Construction Landscape Review from global property consultancy Knight Frank.
Knight Frank’s analysis reveals that construction in the Kingdom has been on a steady upward trend since 2020, with expectations that this trajectory will persist, reaching $191 billion by 2029.
This remarkable level of development is fueled by the government’s Vision 2030 strategy, which aims to position the Kingdom as a global hub for tourism, commerce, and trade. This transformation is set to deliver over 1 million homes, more than 362,000 hotel keys, over 7.4 million square meters of retail space, and more than 7.7 million square meters of new office space by the decade’s end.
Ambitious construction investments
Faisal Durrani, partner and head of Research, MENA, stated: “Construction contracts totaling more than $215.4 billion were awarded across Saudi Arabia between 2020 and 2025, highlighting the government’s incredible ambition and commitment to making the Kingdom the center of wealth generation and trade not just in the GCC but globally. Indeed, some $1.3 trillion is planned to be invested in real estate and infrastructure projects as part of Vision 2030, highlighting the breadth and scale of what is now being delivered.”
Riyadh remains a focal point for construction activity, with $135.2 billion in contracts awarded since 2020, representing 63 percent of the total across the Kingdom. The capital’s $195 billion development plan includes 4.6 million square meters of office space, 2.6 million square meters of retail, more than 28,800 hotel rooms, and over 340,000 homes.
Anticipating the significant influx of businesses, residents, and tourists that this level of development will attract, almost $24 million (29 percent) of construction contracts awarded in Riyadh have been designated for transport projects.
The $22.5 billion Riyadh Metro project features six lines covering 176 km with 85 stations and fully automated, driverless trains. In addition, the King Abdulaziz Public Transport Project will establish a comprehensive bus rapid transport system, while more than $5 billion is being allocated for major road projects to support the city’s expansion.
Rise of giga projects
Mohamed Nabil, regional partner and head of Project and Development Services, MENA, remarked: “With the population of Riyadh projected to increase to 10 million by 2030, the city’s transport upgrade program is one of the largest and most innovative in the world. Although the car remains the dominant mode of transport, the investments being made in Riyadh’s Metro and rapid transport system demonstrate how the city is redefining the urban experience through sustainable development, creating not only a livable city but also an attractive destination for business and tourism.”
Amar Hussain, associate partner in Research, Middle East, explained: “Giga projects are a major hub of construction activity. For example, the $50 billion New Murabba project will transform 19 square kilometers of north-west Riyadh, creating 18 new neighborhoods. In Western Saudi Arabia, a $685.5 billion real estate development plan centered on giga projects will deliver more than 382,000 homes, 330,000 hotel rooms, and office and retail space spanning upwards of 7.3 million square meters. These projects are designed on a scale far beyond anything else currently under construction in EMEA, and this bold vision is rapidly becoming reality, bringing benefits to Saudi residents and businesses alike.”
