Growth in Saudi Arabia’s construction activity shows no signs of slowing, with the construction output value for the construction, transport, power, oil and gas, industrial, water and chemical sectors reaching $148 billion in the first half of 2024, up 4.6 per cent compared to the same period the previous year, according to global property consultancy Knight Frank.

Knight Frank’s analysis shows that the Saudi construction sector has been growing year-on-year since 2020 and forecasts this upward trajectory will continue, hitting $191 billion in 2029.

This phenomenal level of development is being driven by the government’s Vision 2030 strategy to position the kingdom as a global hub for tourism, commerce and trade, stated Knight Frank in its latest Saudi Arabia Construction Landscape Review.

This transformation aims to deliver over 1 million homes, more than 362,000 hotel keys, over 7.4 million sqm of retail space, and more than 7.7 million sqm of new office space by the end of the decade, it added.

Faisal Durrani, Partner – Head of Research, Mena, said: “Construction contracts totalling 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 centre 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,” stated Durrani.

Riyadh remains a centre of construction activity, with $135.2 billion of contracts awarded since 2020, representing 63 per cent of the total across the kingdom. The capital’s $195 billion development plan includes 4.6 million sq m of office space, 2.6 million sq m of retail, more than 28,800 hotel rooms and over 340,000 homes.