Projected value of construction sector Saudi Arabia 2019-2023

The forecasted value of the construction sector in Saudi Arabia for 2019 was about 69 billion U.S. dollars. The construction market was undergoing a comeback after a period of economic volatility that followed the collapse of the Dubai real estate market.

Construction sector in Saudi Arabia

The economic and political issues faced by Saudi Arabia due to instability and decreasing oil prices motivated the state to initiate diversification procedures to boost the economy. The forecasted value of the construction industry to the gross domestic product (GDP) in Saudi Arabia was expected to increase in the upcoming years to reach 7.1 percent in 2023. The investments in the construction sector of Saudi Arabia have been mainly directed to luxurious housing units and compounds. It has caused an increase in the gap for affordable housing properties. However, there is an overinvestment in the construction of retail and office space in the largest cities of the country. The highest value construction projects in Saudi Arabia as of 2019 were Sudair Industrial City, Jazan Economic City, and Kind Abdullah Economic City.

MENA construction sector

The construction market in the Middle East and North Africa region underwent a severe downturn after the global financial crisis and the Arab Spring, with many projects worth trillions either cancelled or put on hold. In recent years, the construction and infrastructure sectors have been witnessing growth, however, the region’s growth is expected to slow. The construction boom in Qatar is starting to stagnate, while construction growth in Egypt is expected to show prosperity between 2019 and 2023. The largest construction value among Gulf Cooperation Council countries was the second stage of the Etihad Rail in the United Arab Emirates with a value of 5.6 billion U.S. dollars in 2019 . Saudi Arabia had the highest infrastructure value among the Gulf Cooperation Council countries for 2019.