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Construction and Infrastructure Sector in Saudi Arabia

Fueled by the aim of Vision 2030 to diversify the economy and reduce dependence on oil, Saudi Arabia's construction and infrastructure sector is booming.

Construction side with construction worker
from Unsplash, ID X1P1_EDNnok / by josh olalde

Between 2018 and October 2023, construction contracts valued at 61 billion US dollars were awarded for 17 giga projects. Of these, 30 billion US dollars alone were for the futuristic development zone, NEOM. Mega projects like New Murabba, King Salaman Park, Trojena, Jeddah Central and Qiddiya are also propelling the country's construction activities. 

 

Residential Construction

A further central component of Vision 2030 is the housing construction policy. By 2030, Roshn, a company founded by the Public Investment Fund (PIF), plans to create 395.000 residential units in and around metropolitan regions like Riyadh, Jeddah, Mekka, Al Hofuf and Asir. Large projects like this address the shortage of affordable housing. Furthermore, the organization of events such as the FIFA World Cup 2034 bring about additional investment in hotels and infrastructure. 

 

The sector finds itself in a phase of rapid expansion, carried by public and private investments. Particularly in urban development, traffic infrastructure and (religious) tourism, large scale projects are emerging. By 2030, the construction volume is expected to increase to 96,25 billion US-dollars. 

Construction side worker
Construction side
from Unsplash, ID -VLPUm5wP5Z0 / by jeriden-villegas

Current Trends in the Construction Sector

  • Market volume: USD 70 bn
  • Growth projection: 4,6% per annum
  • Green cement
  • Sustainable concrete solutions
  • Carbon capture and storage
  • Public transportation
  • Smart urban development solutions, smart cities and urban development
  • Serial and modular construction
Construction Industry Construction Worker
Construction Industry Construction Worker
PIXABAY / ID 7895206_1920

  • 395,000 New residential units

    by 2030

  • 96,25 bn. US Dollar

    Growth in construction volume by 2030

  • 4.6 % yearly

    Growth projection

Opportunities for German Companies 

Saudi Arabia offers German construction companies immense opportunity in a rapidly expanding market. Vision 2030 drives forward mega projects like NEOM, Roshn and Red Sea Global, bringing about demand for construction materials, construction chemicals and sustainable technology. 

 

To minimize delays in construction and ensure that projects are completed on time, the demand for resources and materials is frequently covered by imports. The high demand for imports offers business opportunities for international companies. Additionally, Vision 2030 promotes large-scale infrastructure measures, smart city concepts and the construction of modern residential, and commercial real estate. 

 

Furthermore, there are a multitude of opportunities in the field of urban planning. Through a combination of public investment and private involvement, a number of new projects are currently emerging. Joint ventures with experienced partners who contribute valuable expertise, are in popular demand. Many of these projects are financed by the Public Investment Fund (PIF) together with various ministries and require innovative as well as efficient building concepts. 

 

 

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