Saudi Arabia’s Construction Sector Surges with $148 Billion in Project Awards in H1 2024

Dubai: Saudi Arabia’s construction sector continues its robust expansion, with no signs of slowing down, as per data from the first half of 2024.

According to the latest report by Knight Frank, project awards across various sectors reached $148 billion, reflecting a 4.6% year-on-year increase. This upward momentum is expected to continue, with the sector projected to reach a total value of $191 billion by 2029.

The growth is largely fueled by the Saudi government’s ambitious Vision 2030 strategy, which aims to deliver:

• Over 1 million new homes
• More than 362,000 hotel keys
• Approximately 7.4 million square meters of retail space
• Over 7.7 million square meters of new office space by the end of the decade

Faisal Durrani, Partner and Head of Research (MENA) at Knight Frank, highlighted that from 2020 to 2025, construction contracts worth $215.4 billion have already been awarded across the Kingdom.

“In fact, an estimated $1.3 trillion is planned to be invested in real estate and infrastructure projects under Vision 2030, underscoring the scale and ambition of what is currently being delivered,” Durrani said.

Saudi Arabia’s sustained investment in real estate, infrastructure, and mega-projects positions it as one of the most active construction markets globally, as the Kingdom continues its transformation under Vision 2030.