Saudi Arabia Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2030 (Q3 2026)

Saudi Arabia construction market forecast to 2030 with sector analysis, mega project pipeline, contractor benchmarking, project opportunities, risks, and Vision 2030 insights.

GlobalData estimates the Saudi Arabian construction industry to grow by 1.8% in real terms in 2026, supported by the increasing investments in the transport, residential and data center infrastructure projects. In August 2026, the Saudi Contractors Authority (SCA), announced that the country recorded a total of 97 project awards between January and July 2026, with a combined value of SAR111.3 billion ($29.7 billion), compared to 84 projects awarded with a combined value of SAR70.1 billion ($18.7 billion), during January-July 2025. Growth also being driven by some of the major allocations under Saudi Arabia’s 2026 Budget, which includes SAR259 billion ($69.1 billion) for health and social development sectors, SAR202 billion ($53.9 billion) for the education sector, and SAR35 billion ($9.3 billion) for the infrastructure and transportation sector.

During the forecast period, the construction industry is expected to register an annual average growth of 4.1% between 2027 and 2030, driven by investments under the Vision 2030 initiative in transport infrastructure, energy and tourism sectors. In early September 2026, Saudi Arabia's Public Investment Fund (PIF) announced that the Gulf Coast Development Company will develop a major tourism and residential hub along the Al-Khafji coastline. The project will span approximately 20km2, comprising the development of 16,000 housing units alongside hotels and other commercial facilities by 2030. In terms of renewable energy development, Saudi Arabia is targeting 50% of its electricity generation to come from renewable energy sources by 2030.

GlobalData’s Construction in Saudi Arabia – Key Trends and Opportunities to 2030 (Q3 2026) report provides detailed market analysis, information, and insights into Saudi Arabia’s construction industry, including:
• Saudi Arabia’s construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Saudi Arabia’s construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Saudi Arabia. It provides:

• Historical (2021–2025) and forecast (2026–2030) valuations of the construction industry in Saudi Arabia, featuring details of key growth drivers.

• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector

• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.

• Listings of major projects, in addition to details of leading contractors and consultants

Key Highlights

The construction industry in Saudi Arabia is projected to grow by 3% in real terms in 2026, driven by increased investments in transport infrastructure and renewable energy projects, alongside government allocations outlined in the latest 2026 Budget.

According to the Saudi Central Bank (SAMA), overall real estate loans from banks rose by 6.4% year on year (YoY) at the end of Q1 2026, preceded by YoY growth of 7.7% at the end of Q4 2025 and 10.8% at the end of Q3 2025.

In December 2025, the Saudi Arabian Cabinet approved the general budget for fiscal year 2026, which includes a total spending of SAR 1.3 trillion ($346.7 billion) and revenues of approximately SAR 1.2 trillion ($306.7 billion).

The primary goal of the 2026 Budget is to advance the Vision 2030 initiatives through investment in major developments, thereby reducing oil dependency and boosting non-oil economic growth.

According to the budget, 2026 will mark the start of a “third phase” of Vision 2030, accelerating the pace of progress and increasing growth opportunities to achieve a sustainable impact beyond 2030. Some of the major allocations under Saudi Arabia’s 2026 Budget include SAR259 billion ($69.1 billion) for the health and social development sectors, SAR202 billion ($53.9 billion) for the education sector, and SAR35 billion ($9.3 billion) for the infrastructure and transportation sector.

Over the remainder of the forecast period, the construction industry is expected to register an annual average growth rate of 4.4% between 2027 and 2030, driven by development under Saudi Vision 2030 and an increase in public-private investment in transport and housing infrastructure projects, coupled with the country’s plan to expand its railway network to 8,000 km by 2030, up from 5,300 km in 2024.

In line with this, in April 2026, the government announced that the Saudi Landbridge Project, one of the Kingdom’s largest transport infrastructure developments, is advancing toward construction with an estimated investment of SAR26.2 billion ($7 billion). The project will add more than 1,500 km of new railway lines by 2034, including a 900 km railway connecting Riyadh and Jeddah, which will provide direct freight access between the capital, King Abdullah Port, and Yanbu. Key components include the 35 km Riyadh Rail Link, a double-track railway connecting the North–South Railway with the Eastern Railway Network.

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