Saudi Arabia’s Rapidly Expanding Construction Sector: A Look at Vision 2030 and Beyond

Saudi Arabia’s construction sector is currently experiencing rapid growth, driven by ambitious development projects and government initiatives like Vision 2030. The value of construction outputs in various sectors reached $141.5 billion, a 4.3% increase from the previous year. Knight Frank closely monitors the country’s historic transformation in large-scale, high-value projects with unique designs.

The government aims to attract investments worth more than $3 trillion by 2030, which was highlighted at the first Gulf-China Cooperation Forum for Industries and Investments. Since the launch of the National Transformation Plan in 2016, the total budgeted value of real estate and infrastructure projects has exceeded $1.25 trillion, driven by Vision 2030.

The residential sector leads in terms of construction production value in Saudi Arabia, accounting for 31% of total production value in 2023. Energy and utilities follow closely behind. By 2028, the construction production value for all sectors in the Kingdom is expected to reach $181.5 billion, solidifying Saudi Arabia as the largest construction market globally.

Knight Frank’s analysis of residential construction costs in Saudi Arabia reveals a range of costs per square meter for different residential projects. The cost of delivering the 660,000 homes planned by 2030 is estimated to be at least $175 billion.

New megacities and Giga projects are emerging in Saudi Arabia as part of Vision 2030, transforming the urban landscape of the country. These projects are accelerating as the 2030 deadline approaches, with over SAR 1.25 trillion worth of projects yet to be delivered.