Amid a boom in the construction industry, Saudi Arabia is expected to become the largest construction market in the world by 2030.
As to Knight Frank’s most recent estimate, the construction industry in Saudi Arabia is flourishing, with output reaching $141.5 billion in the residential, institutional, infrastructural, industrial, energy, utilities, and commercial sectors.
By the end of 2028, the Kingdom’s construction production is expected to exceed $181.5 billion across all sectors, making it the world’s biggest market for construction. The Kingdom is seeing a boom in building, with 660,000 new residences expected to be constructed by 2030. You can find a job at Layborod because Saudi Arabia will be looking for fresh employees.
Saudi Arabia’s Construction Boom
According to the company’s Saudi Construction Landscape Review for the first half of 2024, construction awards increased by 4.3% on an annual basis.
“We are currently witnessing a historic transformation in Saudi Arabia, where building projects are notable for their scale and value,” stated Mohamed Nabil, Regional Partner, Head of Projects & Developments, MENA.
The Minister of Investment recently confirmed at the first China-GCC Industrial and Investment Cooperation Forum in China last month that the government hopes to attract more than $3 trillion in investment by 2030, given the scale of development.
At the core of Vision 2030 is this substantial investment in Kingdom transformation, which will solidify the Kingdom’s standing as a major international center for trade, tourism, and business.
According to Knight Frank, the total projected value of infrastructure and real estate projects in Saudi Arabia has surpassed $1.25 trillion since the National Transformation Plan was introduced in 2016.
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Saudi Arabia will dominate the global building industry by 2030 with trillion-dollar projects
Vision 2030, which intends to provide more than 320,000 hotel keys and 660,000 residential units, more than 5.3 million square meters of retail space, and by the end of the decade, more than 6.1 million square meters of extra office space, is the driving force behind this change in the urban landscape.
Nabil stated: “It is significant that the Riyadh Governorate holds 38% of the current contract value, or $54 billion, followed by the Makkah and Tabuk Governorates, with $28.7 billion and $28.5 billion, respectively.
While contracts awarded in the construction sector represent 61% of the total value, with the transportation sector coming in second at 33%. This shows how much money is being spent to improve the capital’s transportation system as its population rises to an estimated 10 million people by 2030. According to Knight Frank analysis, the residential sector primarily dominates construction value in Saudi Arabia, accounting for 31 percent ($43.5 billion) of the total output is anticipated to grow to $56.9 billion by 2028 from 2023.
Second in value at $35.1 billion, the energy and utilities sector is expected to grow to $46.5 billion by 2028. By the end of 2028, the Kingdom’s construction output in all sectors is expected to exceed $181.5 billion, making Saudi Arabia the largest construction market globally, according to Knight Frank.
A study of residential construction prices in Saudi Arabia has also been released by Knight Frank, which details the range of fixed fit-out and building construction costs for various residential categories, such as varying villa levels, as well as apartment structures.
The primary reason for the discrepancy in construction prices, which vary from £3,800 to £10,000 per square meter, Knight Frank found, is the clear differences in the size, caliber, and kind of construction projects. This was determined by analyzing the rate of construction per square meter for a variety of residential projects in the Kingdom. According to Knight Frank’s study, the construction of the 660,000 dwellings that are planned for the Kingdom Using the lower end of this range and data on average home sizes, it will cost at least $175 billion by 2030.
The development of new megacities, mostly Giga projects, throughout the Kingdom, especially in the west, has undoubtedly been the most evident consequence of Vision 2030. As a result, all future project owners will be actively seeking employment. If you are a carpenter or builder, you should start looking on job search websites. To improve your chances of success, use https://layboard.in/vacancies/jobs-in-Saudi-arabia/speciality/carpenter.
“With over SAR 1.25 trillion (US$340.3 billion) in launched but unfinished developments, Giga Projects are definitely changing the Kingdom’s urban landscape,” continued Amar Hussain, Associate Research Partner at ME. As the 2030 deadline for Vision 2030 draws near, one of the largest real estate markets in Saudi Arabia is experiencing a boom in development initiatives in history.
Saudi Arabia is expected to experience a construction boom and create new jobs by 2030
Over the last 12 months, the expected supply of residential units has increased by 30% to 660,000 units nationwide. Office supplies, meanwhile, have remained stable at 6 million square meters.
320,000 more hotel rooms and Retail space totaling 5.3 million square meters is now planned for the commercial market, helping Saudi Arabia reach its 2030 target of having 40 million residents and 150 million tourists. Compared to the roughly 106 million visitors from the prior year, this figure indicates a 62 percent increase, including 27 million foreign visitors.
Currently, 25 giga projects are in different stages of development in the Kingdom, according to Knight Frank’s analysis. Western Saudi Arabia continues to be the emphasis, with plans totaling $692 billion, or 55% of the $1.25 trillion development plan. Retail and office space, as well as the availability of upscale housing and hospitality, are all predicted to develop significantly in the area.