Dublin, Oct. 02, 2024 (GLOBE NEWSWIRE) -- The "Saudi Arabia Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units), Q2 2024 Update" report has been added to ResearchAndMarkets.com's offering.
The construction industry in Saudi Arabia is expected to grow by 6.2% to reach SAR 232.14 billion in 2024.
Despite near-term challenges in certain construction sectors, Saudi Arabia's construction industry is poised for significant growth. The industry is expected to grow steadily over the next four quarters, with the growth momentum continuing over the forecast period. A CAGR of 2.6% is projected during 2024-2028, with the country's construction output expected to reach SAR 287.38 billion by 2028, indicating substantial growth potential.
This market intelligence report offers a comprehensive view of market opportunities in the building and infrastructure construction industry at the country level. With over 100+ KPIs covering growth dynamics in building and infrastructure construction, construction cost structure analysis, and analysis by key cities in Saudi Arabia, this databook provides a wealth of data-centric analysis with charts and tables, ensuring stakeholders are fully informed.
The construction industry in Saudi Arabia is poised for continued growth, driven by the government's ambitious Vision 2030 plan and its focus on diversifying the economy. As the sector navigates challenges such as rising material costs and labour shortages, stakeholders must remain proactive in leveraging emerging trends and aligning with government initiatives. By embracing sustainable practices, adopting innovative technologies, and fostering strategic partnerships, construction companies can capitalize on the immense opportunities presented by Saudi Arabia's construction boom and contribute to the country's long-term prosperity.
The construction industry in Saudi Arabia is experiencing unprecedented growth, driven by government initiatives, tourism investments, and a focus on diversifying the economy. As the Kingdom continues implementing its ambitious Vision 2030 plan, the construction sector is poised to play a pivotal role in shaping the country's future.
- Government Investment in Tourism: The Saudi government has announced plans to invest USD 800 billion into its tourism industry to attract 150 million visitors annually by 2030. This investment has launched several new hotel projects by global hoteliers seeking to capitalize on the growth opportunity.
- Diversification of the Economy: As part of its Vision 2030 plan, Saudi Arabia focuses on diversifying its economy from oil dependence. The construction industry plays a crucial role in this transformation, with significant investments in infrastructure, industrial facilities, and renewable energy projects.
- Emphasis on Sustainability: The Kingdom prioritizes sustainable construction practices, incorporating green building standards and energy-efficient designs into new projects. This aligns with the government's goal of reducing carbon emissions and promoting environmental responsibility.
Residential Construction: Meeting Housing Demands
- Affordable Housing Initiatives: The government has launched several affordable housing projects, including 390 villas and townhouses in Jeddah and a 3.8 million square meter development by the National Housing Company. These initiatives aim to address the country's housing needs and increase homeownership.
- Shift Towards Vertical Living: As urbanization continues, there is a growing trend towards high-rise apartments and mixed-use developments, particularly in major cities like Riyadh and Jeddah. This shift is driven by land scarcity and the need for integrated living environments.
Commercial Construction: Attracting Global Investment
- Retail and Hospitality Developments: The commercial construction sector is witnessing significant investments in retail spaces, office buildings, and mixed-use projects. Global hoteliers are launching new properties to capitalize on the government's tourism goals, while domestic developers are also expanding their portfolios.
- Data Center Projects: The Kingdom is attracting investments in the data center segment, with global tech firms like Amazon and domestic companies like DataVolt announcing multi-billion-dollar projects. These investments are part of Saudi Arabia's efforts to diversify its economy and establish itself as a regional hub for technology and innovation.
Institutional Construction: Enhancing Public Services
- Education and Healthcare Facilities: The government is allocating substantial funds to develop educational and healthcare institutions, aiming to improve public services and address the needs of a growing population. These investments support the country's long-term social and economic development.
- Disaster Resilience: Given Saudi Arabia's vulnerability to natural disasters, institutional projects are incorporating resilience measures into their designs. This focus on disaster preparedness ensures the continuity of essential public services and enhances community safety.
Industrial Construction: Supporting Economic Diversification
- Manufacturing and Logistics Facilities: The industrial construction sector is experiencing growth driven by increased demand for manufacturing and logistics facilities. The government's initiatives to boost local production and reduce reliance on imports are fuelling investments in this area.
- Renewable Energy Projects: Saudi Arabia is investing significantly in renewable energy projects, particularly solar and wind power. The Kingdom aims to increase its renewable energy capacity to 175 GW by 2035, requiring extensive industrial construction efforts.
Infrastructure Construction: Building for the Future
- Mega-Projects and Giga-Projects: The Saudi government is investing heavily in infrastructure projects, including the NEOM smart city, the Red Sea development, and the Qiddiya entertainment city. These mega-projects are transforming the country's landscape and positioning Saudi Arabia as a global hub for innovation, tourism, and investment.
- Transportation Networks: The government is prioritizing the development of transportation infrastructure, including roads, railways, and airports. These investments are crucial for enhancing connectivity, facilitating trade, and supporting economic growth across the Kingdom.
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