Saudi Arabia’s construction sector strongest across MENA region, reveals JLL

Saudi Arabia’s construction sector strongest across MENA region, reveals JLL

Saudi Arabia’s construction industry continues to lead the MENA region despite macroeconomic conditions impacting the sector globally, according to JLL’s Q4 2022 ‘KSA Construction Market Intelligence Report’. The kingdom witnessed the highest value of project awards in 2022, demonstrating its commitment to driving economic diversification and transforming the country in line with its Vision 2030. Construction output growth in Saudi Arabia is anticipated to rise by 3.2 per cent in 2022, with a further annual average growth rate (AAGR) of 4 per cent between 2023 to 2026 as indicated by Global Data. Saudi Arabia has maintained its position as the strongest market across the MENA region with the highest total value of project awards for four consecutive years. As of October 2022, Saudi holds a 35 per cent market share with a recorded $31 billion worth of contract awards against an overall MENA total of $87bn as tracked by MEED Projects. Saudi Arabia’s pipeline value of unawarded (pre-execution) projects is estimated at $1.1 trillion, which includes projects from the study stage through to the main contractor bid. Approximately 70 per cent comprise ‘construction’ sector projects with residential, cultural, leisure, and hospitality as sub-sector leaders, which is the driving force behind