Strong Market Growth & Outlook
- In 2024, the Saudi construction market was valued at approximately USD 104.8 billion, with expectations to reach USD 174.4 billion by 2030, growing at a robust CAGR of 8.7% (Business Wire).
- Alternate forecasts position the sector at USD 70.3 billion in 2024, potentially rising to USD 91.4 billion by 2029 (CAGR of 5.4%) (Big 5 Construct Saudi).
- Additional projections point to USD 191 billion in construction output by 2029, marking a ~29% increase compared to 2024’s estimated USD 148 billion output (Arab News).
Construction Price & Cost Dynamics
- The Construction Cost Index (CCI) recorded a 0.7% increase in July 2025 compared to July 2024 (GASTAT, The Finance World).
- In June 2025, year-over-year changes included +1.2% residential, +1.0% non-residential, driven by:
- Equipment/machinery rental up 2.5%
- Energy prices up 9.9% (diesel +27.3%)
- Labor wages up 2.4%
- Basic materials down 0.7% (GASTAT)
Sector Growth Trends
- The industry is projected to grow 4% in real terms in 2025, and 5.4% annually from 2026–2029, supported by a SAR 1.3 trillion (~USD 342.7 billion) national budget for 2025 (GlobeNewswire, Yahoo Finance).
- IMARC estimates market size of USD 97.8 billion in 2024, trending to USD 135.6 billion by 2033 (CAGR 3.7%) (IMARC Group).
Noteworthy Infrastructure Launches
- The Riyadh Metro (driverless) spans 176 km with 85 stations and ~USD 22.5 billion investment; operations began in late 2024 and fully ramped by Jan 2025 (Wikipedia).
- Jeddah Tower construction has resumed; as of September 1, 2025 it reached the 70th floor, with completion targeted for 2028 (Wikipedia).
Preserving Heritage Through Design
- In March 2025, the Saudi government unveiled the Architecture Characters Map, featuring 19 architectural styles drawn from the nation’s geography and culture. Estimated impact: SAR 8 billion and 34,000 jobs. Phase one launches in cities including Al-Ahsa and Mecca (Wikipedia).
Summary Table: Key Metrics & Trends
| Indicator | Value (2024–2029 Estimates) |
| Market Size (lower forecast) | USD 70.3B → USD 91.4B (CAGR ~5.4%) |
| Market Size (higher forecast) | USD 104.8B → USD 174.4B (CAGR ~8.7%) |
| Construction Output Value (2029) | USD 191B (~29% growth from 2024) |
| CCI Inflation (Residential) | +1.2% YoY (June 2025) |
| CCI Inflation (Non-Residential) | +1.0% YoY (June 2025) |
| Equipment/Machinery Rental Costs | +2.5% YoY |
| Energy Costs (Diesel spike) | +9.9% YoY; diesel +27.3% |
| Labor Wages | +2.4% YoY |
| Basic Materials Prices | −0.7% YoY |
| Growth Outlook (2025) | +4% real growth |
| Growth Outlook (2026–2029 avg.) | +5.4% annually |
| Landmark Infrastructure Projects | Riyadh Metro (operational), Jeddah Tower (under construction) |
| Architecture Initiative Impact | SAR 8B investment; 34k jobs |
Closing Thoughts
Saudi Arabia’s construction sector is navigating a period of robust growth and transformation. Inflationary pressures are most visible in equipment, energy, and labor, while materials eased slightly. Forecasts indicate sustained expansion in market size and output through 2029.
As urbanization accelerates and Vision 2030 drives mega-scale development, the outlook remains dynamic. Initiatives like the Riyadh Metro and the Architecture Characters Map highlight both modernization and cultural preservation.