Saudi Arabia is on track to become the “largest construction market in the world” by 2028, according to the global real estate consultancy firm, Knight Frank.
Construction Boom
Knight Frank, headquartered in London, expects the total value of construction contracts in the Kingdom to reach USD 181.5 billion by the end of 2028.
This represents an increase of nearly 30% from 2023 levels.
So What
This growth is largely attributed to the ambitious “Vision 2030” led by Crown Prince Mohammed bin Salman.
The initiative aims to diversify the Saudi economy away from oil and reform the country’s infrastructure.
Since the launch of Vision 2030 in 2016, the government has initiated projects worth over USD 1.2 trillion.
These include residential real estate and several mega-projects like “The Line,” “The Red Sea,” and “Qiddiya.”
The goal is to accelerate economic transformation, accommodate the growing population, and anticipate the influx of foreign tourists.
Some Context
The report revealed that in 2023 alone, local construction contracts worth over USD 140 billion were awarded, marking a 4.3% year-on-year increase.
Most of these contracts were in Riyadh, where the population of Saudi Arabia is expected to reach around 10 million by 2030.
The capital has become a “major focal point” for the country, as it prepares to host the “Expo 2030” exhibition.
Additionally, the Kingdom is expected to host the FIFA World Cup in 2034.
