Saudi Arabia to dominate world's construction market
23/07/24
Saudi Arabia is poised to become the world’s largest construction market as the Kingdom pours vast resources into projects aimed at diversifying the economy. The London based real estate consultancy group Knight Frank recently reported the country’s total construction output value is forecast to reach SAR 679 (USD 181.5 billion) by the end of 2028, up almost 30% from 2023.
It is predicted that a significant amount of construction is likely to be required for residential property and giga projects, alongside other developments that form part of the country's mission to transform the oil-dependent economy. Further important markets are the aviation and hotel sectors which aim to attract an influx of foreign tourists who can utilise the recently revamped tourist visa service.
Moreover, the report noted that Saudi Arabia is currently witnessing a historical transformation with construction projects impressing with both their design scale and value. Since the Saudi Vision 2030 initiative was introduced eight years ago, the Kingdom has launched projects worth over SAR 4.7 trillion (USD 1.25 trillion).
In 2023 alone, more than SAR 525 billion (USD 140 billion) of construction contract awards were awarded. The majority of these projects were in the Kingdoms capital Riyadh, where Saudi Arabia aims to grow its population to 10 million by 2030. Further strategies include hosting major events which will include the World Expo, The 2025 Asian Indoor and Martial Arts Games and potentially the FIFA World Cup in 2034.
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