Consulting group Knight Frank forecasts that Saudi Arabia’s construction market will reach $181.5 billion.
According to real estate consulting group Knight Frank, Saudi Arabia is poised to become the largest construction market in the world as the kingdom pours massive amounts of money into projects aimed at diversifying its economy.
The total construction output in the country is projected to reach $181.5 billion by the end of 2028, which is nearly a 30% increase from 2023, the London-based firm stated in a research report published on Monday.
Most of this funding is expected to come from residential real estate and so-called “giga-projects,” as well as other initiatives that are part of Crown Prince Mohammed bin Salman’s mission to transform the oil-dependent economy. For the success of the plan, known as “Vision 2030,” it will be essential to account for the growing population and the anticipated influx of foreign tourists.
“We are currently witnessing a historic transformation unfolding in Saudi Arabia, where construction projects are distinguished by their scale and value,” said Mohamed Nabeel, regional partner and head of projects and development in the Middle East and North Africa at Knight Frank.
According to Knight Frank’s research, since the “Vision 2030” initiative was launched eight years ago, Saudi Arabia has initiated projects worth over $1.25 trillion.
In 2023 alone, Saudi Arabia awarded construction contracts worth more than $140 billion. Most of these projects took place in Riyadh, where the kingdom aims to increase its population to 10 million by 2030.