Despite challenges such as labour shortages, rising material costs, and long procurement lead times, Saudi Arabia’s construction sector is showing resilience and initiatives to localise supply chains, upskill the workforce and encourage modern methods of construction, a report said.

Saudi Arabia’s construction sector is accelerating rapidly, underpinned by giga-project investments, economic diversification, and the national ambition of Vision 2030, according to global professional services company, Turner & Townsend.

The firm’s KSA Market Intelligence 2025 report analyses how the kingdom is capitalising on a $1.7 trillion pipeline of real estate, infrastructure and industrial developments, while navigating associated delivery pressures and capacity constraints.

Digital delivery is also gaining traction. Turner & Townsend’s Global Construction Market Intelligence (GCMI) report found the majority of clients in Saudi Arabia are now investing in digital tools to streamline delivery, reduce costs and address workforce limitations.

Alternative delivery models such as Programme Management Consultancy (PMC) are also being adopted to improve project outcomes and ensure the kingdom’s ambitious programmes are deliverable.

Unlike traditional approaches, PMC offers strategic, portfolio-level oversight by integrating governance, stakeholder alignment and digital platforms across multiple workstreams to drive consistency, efficiency and long-term value.

According to the GCMI, build costs remain elevated. Riyadh is now one of the most expensive cities in the region at $3,112 per sq m - yet investor confidence remains strong. Tourism, logistics, digital infrastructure and residential development are attracting the greatest share of investment.

Mixed-use destinations, sports, leisure and hospitality are among the top-performing sectors – fuelled by mega-events such as Expo 2030 and the FIFA World Cup 2034.