Saudi Arabia Construction Industry: A Market of Global Opportunities
Saudi Arabia’s construction market is attracting small construction companies, contractors, and material suppliers from around the world. Many are entering the market for the first time or expanding their existing business to capitalize on opportunities in the booming construction sector, particularly in real estate development. With Saudi companies and suppliers unable to fully meet demand, there is a major opportunity for international players beyond the Gulf region to step in.
Real estate consultancy group, Knight Frank, has projected that the Saudi construction market will be the world’s largest by 2028. The rapid growth of Saudi Arabia’s construction industry, encompassing both residential and giga projects, has captured the attention of global suppliers. These suppliers play a crucial role in fulfilling the ever-increasing demands of construction activities, further supported by significant foreign investment in Saudi construction.
Upcoming projects in Saudi Arabia
Even excluding flagship projects such as NEOM, Saudi Arabia is planning 6 giga projects monumental in terms of either physical structure or financial investment.
Construction is also progressing for 2029 Asian Winter games, Expo 2030 and FIFA world cup 2034. There is also a spurt in demand from Saudi citizens for buying their own homes and the suppliers to the construction industry are finding it difficult to cope with the demand.
This is over and above growing demand for office, industrial and commercial units. Apart from the upcoming projects in Saudi Arabia such as the giga-projects, other infrastructure projects are also underway across the country including additions to the new Riyadh Metro, new ports and highways, 11 stadiums and the King Salman International Airport, which is slated to be one of the largest in the world.
Saudi Arabia Construction Market Growth
With this major expansion in the construction field, the value of construction contracts awarded every year has almost tripled over the last decade from $55 billion in 2014 to $142 billion in 2023, according to Knight Frank. That could reach $182 billion in 2028, potentially making Saudi Arabia the biggest construction market in the world.
Several key factors are driving this surge in construction activity:
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Regional Headquarters (RHQ) Initiative – Saudi Arabia’s push to attract multinational companies to set up their regional headquarters in the Kingdom is fueling demand for office spaces, commercial hubs, and corporate infrastructure, particularly in cities like Riyadh. The influx of global businesses is boosting the commercial real estate and construction sectors, as companies seek modern facilities to establish their presence.
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Urbanization and Population Growth – With Saudi Arabia’s population steadily increasing and urban centers expanding, the need for residential developments, transportation networks, and social infrastructure is skyrocketing. Large-scale housing projects and smart city initiatives are reshaping urban landscapes, driving further investment in the real estate and construction industries.
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Business Setup and Foreign Investment – The Saudi government’s pro-business policies and FDI-friendly regulations are encouraging entrepreneurs and corporations to set up operations in the country. As new businesses emerge, the demand for industrial parks, logistics hubs, and commercial spaces continues to rise, further accelerating construction projects across the Kingdom.
With these dynamic forces in play, Saudi Arabia’s construction boom is not just about large-scale developments—it is a direct reflection of the country’s economic transformation and its ambition to become a global business and investment hub.
How Helpline Group Supports Business Setup in Construction
With the rapidly expanding construction industry and mega projects in the pipeline, the Helpline Group can assist foreign investors to capitalize on the large construction market in the Kingdom.
Helpline Group, backed by a strong and experienced team, brings over 25 years of expertise in company formation, and other services like attestation, police clearance certificates, apostille of documents, etc., offering a seamless, hassle-free experience for clients, including foreigners.
Our seasoned professionals possess in-depth knowledge of the latest rules and regulations, ensuring compliance and efficiency. They help the foreign companies to leverage the favourable Saudi business environment, especially in the booming construction market in Saudi Arabia.
With a global presence and a tailored approach, we ensure that your construction business setup is handled with precision and professionalism, making us your reliable ally in achieving success.
