An overview of the latest trends in the Saudi construction sector

Setting aside visions of immense wealth generated through oil reserves, Saudi Arabia’s government has been developing new initiatives to spur innovation and encourage regional economic growth. Many modern trends have begun appearing in the country’s infrastructure development field in response to these efforts. From renewable energy sources exploding onto the scene to prefabricated buildings popping up with haste, take an enlightening journey through some of the most revolutionary changes happening in today’s Saudi Arabian construction landscape.

An overview of the Saudi construction market

Boasting a market size of $120.4bn in 2021, the Saudi Arabian construction industry is expected to witness an AAGR of 4 per cent or more during 2023-2026. This impressive growth will be fuelled by investment in transport, renewable energy, housing, and tourism projects, according to Vision 2030 – an ambitious initiative that aims to transform the country’s economy over the next decade.

As the country transitions from an oil-based economy to one of development, bustling mega-cities are under construction with the help of construction companies in Saudi Arabia as a means for future growth. In fact, over 5,200 projects across Saudi Arabia with a combined worth of $819bn are currently underway – representing 35 per cent of all active GCC project values.

Latest trends that are empowering the construction market of Saudi Arabia

1- Renewable energy projects:

As part of Vision 2030, the Saudi government has set an ambitious goal to generate 9.5GW of electricity from renewable sources by 2023. In order to reach this target, massive investment has been poured into solar, wind, and geothermal projects throughout the country, with a cumulative value of $30bn. This movement towards clean energy initiatives is beneficial in reducing emissions, creating job opportunities for tech-savvy workers, and reducing long-term operating costs.

2- Prefabricated buildings:

Saudi Arabia’s construction industry is embracing prefabrication technology as a time-efficient and cost-effective solution to traditional onsite building methods. Contractors can assemble high-quality structures using modular parts within a much shorter time frame. This trend is particularly prevalent in the residential sector, where prefabricated homes have become increasingly attractive to families seeking an affordable yet luxurious living space.

3- Smart cities:

In 2020, Saudi Arabia launched its first smart city initiative near Riyadh – Neom. Spanning across 26,500 km, this ambitious project will be powered by 5G networks and AI technology to create a sustainable living environment for its residents. On top of that, Neom is also expected to generate over $100bn in revenue before 2030 through investments and tourism opportunities.

4- Urban planning:

Another significant aspect that has been gaining traction in Saudi Arabia’s construction market is urban planning. By incorporating innovative concepts such as green infrastructure and mixed-use developments, cities are becoming more liveable and resilient to environmental changes. In addition, with modernised mobility systems, public transportation networks, and renewable energy sources slotting into urban landscapes, tomorrow’s communities will be more connected than ever before.

5- Automation:

Many contractors are turning to automated solutions to reduce the cost and time associated with onsite construction. From robotic bricklayers to AI-assisted drones, these computerised systems are becoming increasingly commonplace in today’s building projects. By leveraging this technology, site managers can ensure that their projects adhere to the highest safety standards while simultaneously increasing productivity levels.

The Saudi construction landscape is constantly evolving as new trends enter the market. With massive investments pouring into renewable energy sources, urban planning, and smart cities, the region has plenty of opportunities for growth over the coming years. As infrastructure development progresses rapidly, it will be exciting to watch how this transformation affects citizens, operating construction companies in the Middle East, and businesses throughout Saudi Arabia and the region.

About Ventures Onsite

For over two decades, Ventures ONSITE, a product of Ventures Middle East, has dominated the market in tracking and monitoring construction initiatives throughout the MEA region. The platform provides reliable, comprehensive, and accurate data about construction projects that have been finished, are currently in progress, and are planned.