Saudi Arabia’s construction sector is accelerating rapidly, fuelled by giga-project investments, economic diversification, and the ambitions of Vision 2030, according to global professional services company Turner & Townsend.
The firm’s KSA Market Intelligence 2025 report highlights how the Kingdom is capitalising on a $1.7tn pipeline of real estate, infrastructure, and industrial developments, while navigating labour shortages, rising material costs, and long procurement lead times.
Despite these challenges, the market is showing resilience. Initiatives to localise supply chains, upskill the workforce, and adopt modern methods of construction are helping to build long-term capacity.
Saudi construction sector
Turner & Townsend’s Global Construction Market Intelligence (GCMI) report found that most clients in Saudi Arabia are investing in digital delivery platforms to streamline costs, overcome workforce limitations, and improve efficiency.
The adoption of Programme Management Consultancy (PMC) models is also gaining traction. Unlike traditional approaches, PMC offers portfolio-level oversight by integrating governance, stakeholder alignment, and digital systems across multiple projects to ensure efficiency and long-term value.
According to the report, build costs remain high, with Riyadh now one of the region’s most expensive cities at $3,112 per sqm.
Still, investor confidence is strong, particularly in sectors such as:
- Tourism
- Logistics
- Digital infrastructure
- Residential development
Mixed-use destinations, sports, leisure, and hospitality are also booming, supported by mega-events such as Expo 2030 and the FIFA World Cup 2034.
Industrial growth is rising, driven by logistics, e-commerce, and data centres, underpinned by national programmes like NIDLP and the launch of HUMAIN, a PIF-owned AI company.
Meanwhile, housing remains a key pillar of Vision 2030. Initiatives such as Sakani, which aims to achieve 70 per cent homeownership by 2030, are boosting residential construction and shaping the Kingdom’s urban landscape.
Kobus Havemann, Director at Turner & Townsend in the Middle East, said: “Saudi Arabia’s economy is projected to be the second fastest growing in the world this year. The knock-on-effect is its construction sector is at a transformative inflection point. Giga-projects are reshaping the landscape, while infrastructure, housing and digital platforms are converging to deliver the ambitions of Vision 2030.
“While cost and capacity pressures persist, the market is showing agility with contractors embracing new technologies, international partnerships growing, and policy reform supporting investment confidence. The focus now must be on capability-building, delivery excellence, and sustainable progress.”
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