Saudi Arabia Commercial Construction Market is expected to register a 5.2% CAGR through 2030F
The
Saudi Arabia commercial construction market is rising due to Vision 2030-driven
investments in infrastructure, tourism, and economic diversification during the forecast period 2026-2030F.
According to TechSci Research report, “Saudi Arabia Commercial
Construction Market - By Region, Competition Forecast &
Opportunities, 2030F, Saudi Arabia Commercial Construction Market was
valued at USD 72.1 Billion in 2024 and is expected to reach at USD 98.61 Billion
in 2030 and project robust growth in the forecast period with a CAGR of 5.2%
through 2030. The Saudi Arabia’s commercial construction market is witnessing
rapid growth due to the government’s strategic focus on tourism and hospitality
under Vision 2030. The Kingdom aims to attract 100 million visitors annually by
2030, driving the demand for hotels, resorts, entertainment centers, and retail
spaces. Mega projects such as The Red Sea Project, Amaala, Diriyah Gate, and
AlUla are transforming Saudi Arabia into a global tourism hub, necessitating
large-scale commercial construction to accommodate the expected influx of
international travelers. The hospitality sector, in particular, is undergoing
unprecedented expansion, with global hotel brands rapidly entering the market
to meet the growing demand for luxury and mid-range accommodations.
Additionally, the rise of religious tourism, with millions of pilgrims visiting
Makkah and Madinah annually, is fueling investments in commercial properties
such as shopping malls, business centers, and mixed-use developments. Saudi
Arabia’s focus on entertainment, including theme parks, cinemas, and cultural
festivals, is further boosting the commercial construction sector by attracting
real estate developers and investors. As tourism and hospitality infrastructure
continues to expand, the commercial construction industry will remain a key
beneficiary, with sustained growth in hotels, retail centers, and entertainment
complexes to cater to a booming visitor economy.
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The Jeddah region is the fastest-growing
area in Saudi Arabia's commercial construction market due to a combination of
strategic geographic positioning, robust infrastructure development, and
economic diversification efforts. As the second-largest city in the kingdom and
a key economic hub, Jeddah serves as the gateway to the holy cities of Mecca
and Medina, facilitating both commercial and religious tourism. This has led to
a surge in demand for commercial real estate, including hotels, retail spaces, offices,
and leisure facilities. Furthermore, Jeddah's proximity to the Red Sea
positions it as a critical port city for trade, driving growth in logistics,
warehousing, and industrial sectors. The region’s rapid urbanization, supported
by the Saudi Vision 2030 initiative, has spurred large-scale infrastructure
projects, including the development of the King Abdulaziz International
Airport, the Jeddah Waterfront, and several mixed-use real estate developments.
Additionally, the region is benefiting from the diversification of the economy
away from oil dependence, with investments flowing into sectors like tourism,
entertainment, and retail, all of which require significant commercial
construction. The Jeddah Economic City, an ambitious development project, aims
to transform the urban landscape, attracting both local and international
investors. The government’s supportive regulatory environment, including
reforms to enhance ease of doing business, further boosts the commercial
construction market. With a population poised for growth and significant
infrastructure projects on the horizon, Jeddah's commercial construction market
is poised for sustained growth, making it the fastest-growing region in Saudi
Arabia.
In 2024, Based on End-User segment private segment is the fastest-growing sector in Saudi
Arabia's commercial construction market due to the increasing diversification
of the economy and an expansion of private sector investment opportunities.
With the Kingdom's Vision 2030 aiming to reduce reliance on oil revenues, the
government has actively encouraged private sector involvement in various
industries, particularly in real estate, tourism, retail, and entertainment.
This has led to significant growth in private commercial construction projects
such as office buildings, retail spaces, luxury hotels, and mixed-use
developments. The growing demand for modern commercial spaces, especially in
urban centers like Riyadh, Jeddah, and the Eastern Province, is driven by the
rapid expansion of the non-oil economy and a burgeoning middle class with
higher disposable incomes. Additionally, with the liberalization of policies,
including the introduction of new regulatory frameworks and investment
incentives, more international and local private investors are entering the
market. The influx of foreign direct investments (FDI) in sectors like tourism,
hospitality, and entertainment is particularly notable, driven by large-scale
initiatives such as the Red Sea Project and the development of mega-projects
like NEOM. Furthermore, the government has created favorable conditions for
private-public partnerships (PPPs), allowing private entities to play a pivotal
role in large infrastructure projects. This trend is expected to continue as private
sector stakeholders see growing opportunities for long-term returns,
particularly in the retail, office, and residential construction spaces. With
government incentives, growing demand for diversified commercial real estate,
and the expansion of key industries, the private sector is at the forefront of
the kingdom’s commercial construction boom.
Key market players in the Saudi Arabia Commercial
Construction Market are: -
- Kabbani Construction Group
- Almabani General Contractors
- AlKifah Contracting Company
- Nesma & Partners Contracting
Company Ltd.
- AL-AYUNI Company
- Construction & Planning Co. Ltd.
- Contracting & Construction
Enterprises Ltd.
- Binladen Group Global Holding Company
- Al-Rashid Trading & Contracting
Co.
- Umm Al Qura for Development & Construction
Company
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“The Saudi Arabia commercial construction market
presents numerous opportunities driven by the country's Vision 2030, which focuses
on economic diversification and infrastructure modernization. Key opportunities
include the development of large-scale mixed-use projects, which combine
commercial, residential, and leisure spaces to meet growing urbanization
demands. The retail and hospitality sectors are poised for expansion, driven by
increasing consumer demand and a booming tourism industry, particularly with
initiatives like the Red Sea Project and the development of new retail
complexes. Additionally, the growing healthcare sector offers opportunities for
the construction of state-of-the-art medical facilities. The shift toward
sustainable and energy-efficient building solutions also presents a lucrative
avenue for innovation in construction practices and materials. Moreover, the
government’s support for infrastructure projects such as transportation
networks and smart cities further enhances prospects for construction firms in
both the public and private sectors.Top of Form” said Mr. Karan Chechi,
Research Director of TechSci Research, a research-based global management
consulting firm.
“Saudi
Arabia Commercial Construction Market By Sector (Healthcare & Medical
Facilities, Educational Institutions, Hospitality, Retail Outlets, Corporate
Offices, Others), By Construction Type (New Construction, Renovation, Repair
& Maintenance), By End-User (Private, Public), By Region, Competition
Forecast & Opportunities, 2020-2030F” has evaluated the future
growth potential of Saudi Arabia Commercial Construction Market and
provides statistics & information on market size, structure, and future
market growth. The report intends to provide cutting-edge market intelligence
and help decision makers take sound investment decisions. Besides the report
also identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in Saudi Arabia Commercial Construction Market.
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