Saudi Arabia’s construction sector is experiencing rapid growth, fueled by major projects and economic reforms aimed at long-term resilience. According to official forecasts, the Kingdom’s GDP is expected to rise from 1.5 percent in 2024 to 4.6 percent in 2025, reflecting ongoing diversification efforts and a drive to become one of the world’s top 15 economies by 2030.
Massive developments such as NEOM, the Red Sea Project, ROSHN, and Qiddiya are propelling the industry forward. However, this surge is creating significant demand for both materials and skilled labor, posing challenges as projects move into the construction phase.
To address these pressures, the industry is embracing modern methods of construction (MMC), which streamline building processes and reduce environmental impact. The Ministry of Municipal and Rural Affairs has introduced the Modern Construction Initiative to support investment in advanced technologies and maximize the use of local resources. Studies indicate that MMC can cut construction waste by up to 90 percent, thanks to precise manufacturing and increased recycling.
Workforce development is another key focus. The Ministry of Human Resources and Social Development updated the Nitaqat program in 2024, as part of the Saudisation initiative, aiming to boost employment among Saudi nationals. Private companies are also investing in training to meet a 25% Saudisation target for engineering roles, strengthening the local talent pool and reducing reliance on expatriate workers.
Significant infrastructure investments are underway, with nearly US$1 trillion committed by 2030 to upgrade roads, aviation, maritime, and rail networks, according to official sources. Governance reforms, such as faster customs processes introduced by the Saudi Zakat, Tax and Customs Authority, are improving supply chain efficiency and creating a more business-friendly environment.
Strategic partnerships are crucial for scaling up capacity. International collaborations, like those highlighted during the Discover NEOM China showcase in April 2024, are bringing global expertise to Saudi projects. The Public Investment Fund further supports the sector by investing US$1.3 billion in leading local construction companies, aiming to strengthen the industry’s foundations.
In summary, Saudi Arabia’s focus on sustainability, modern construction techniques, workforce upskilling, and strategic partnerships is positioning its construction sector for long-term success. These efforts are essential for meeting Vision 2030 goals and ensuring a prosperous future for the Kingdom.
