Saudi Arabia construction output hits $148bn in first half 2024, up 4.6% year-on-year
The figures, released in Knight Frank's Saudi Arabia Construction Landscape Review, show construction in the Kingdom has grown year-on-year since 2020.
The global property consultancy forecasts this trend will continue, with construction output projected to reach $191 billion by 2029.
The development surge stems from the government's Vision 2030 strategy, which aims to position Saudi Arabia as a global hub for tourism, commerce and trade.
The transformation plan targets delivery of over 1 million homes, more than 362,000 hotel keys, over 7.4 million square metres of retail space, and more than 7.7 million square metres of office space by the end of the decade.
Faisal Durrani, Partner – Head of Research, MENA, said: 'Construction contracts totalling more than $215.4 billion were awarded across Saudi Arabia between 2020 and 2025, highlighting the government's incredible ambition and commitment to making the Kingdom the centre of wealth generation and trade not just in the GCC but globally. Indeed, some $1.3 trillion is planned to be invested in real estate and infrastructure projects as part of Vision 2030, highlighting the breadth and scale of what is now being delivered.'
Riyadh leads Saudi Arabia's construction surge
Riyadh remains the focal point of construction activity, with $135.2 billion of contracts awarded since 2020, accounting for 63 per cent of the Kingdom's total.
The capital's $195 billion development plan encompasses 4.6 million square metres of office space, 2.6 million square metres of retail, more than 28,800 hotel rooms and over 340,000 homes.
Transport infrastructure represents a priority area, with almost $24 million – 29 per cent of construction contracts awarded in Riyadh – allocated to transport projects.
The $22.5 billion Riyadh Metro project features six lines spanning 176 kilometres with 85 stations and fully automated, driverless trains.
The King Abdulaziz Public Transport Project will establish a bus rapid transport system, while more than $5 billion is being invested in major road projects to support the city's expansion.
Mohamed Nabil, Regional Partner – Head of Project and Development Services, MENA, added: 'With the population of Riyadh projected to increase to 10 million by 2030, the city's transport upgrade programme is one of the largest and most innovative in the world. Although the car is still the dominant form of transport, the investments being made in Riyadh's Metro and rapid transport system show how the city is redefining the urban experience through sustainable development to create not only a liveable city, but also an attractive destination for business and tourism.'
'Although the car is still the dominant form of transport, the investments being made in Riyadh's Metro and rapid transport system show how the city is redefining the urban experience through sustainable development to create not only a liveable city, but also an attractive destination for business and tourism.'
Giga projects drive construction activity across the Kingdom, according to Amar Hussain, Associate Partner – Research, Middle East.
The $50 billion New Murabba project will transform 19 square kilometres of northwest Riyadh, creating 18 new neighbourhoods.
In Western Saudi Arabia, a $685.5 billion real estate development plan centred on giga projects will deliver more than 382,000 homes, 330,000 hotel rooms, and office and retail space spanning upwards of 7.3 million square metres.
'These projects are designed on a scale far beyond anything else currently under construction in EMEA, and this bold vision is rapidly becoming reality, bringing benefits to Saudi residents and businesses alike,' he added.
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