Saudi Arabia’s construction industry continues to lead the Mena region despite the macroeconomic conditions hitting the sector globally, according to leading real estate expert JLL.
The kingdom has been maintaining its position as the strongest market across the region with the highest total value of project awards for four consecutive years.
As of October, Saudi Arabia holds a 35 per cent market share with a recorded $31 billion worth of contract awards against an overall Mena total of $87 billion as tracked by Meed Projects, stated JLL in its Q4 2022 KSA Construction Market Intelligence Report.
The kingdom witnessed the highest value of project awards last year.
Construction output growth in Saudi Arabia was anticipated to rise by 3.2 per cent for 2022, with a further annual average growth rate (AAGR) of 4 per cent between this year to 2026 as indicated by Global Data.
JLL pointed out that Saudi Arabia's pipeline value of unawarded (pre-execution) projects is estimated at $1.1 trillion.
Approximately 70 per cent comprise ‘construction’ sector projects with residential, cultural, leisure and hospitality as sub-sector leaders, which is the driving force behind the Vision 2030 strategy.
In the second half, 13,000 hotel keys are expected to be delivered in Riyadh, Jeddah, and Makkah.
As per JLL data, the top 10 contractors in Saudi Arabia are responsible for $400 billion worth of projects under way.