Saudi construction strongest in MENA with $1.1trn project pipeline

Saudi construction strongest in MENA with $1.1trn project pipeline

Saudi Arabia’s construction industry continues to lead the Mena region despite the macroeconomic conditions hitting the sector globally, according to leading real estate expert JLL.

The kingdom has been maintaining its position as the strongest market across the region with the highest total value of project awards for four consecutive years.

As of October, KSA holds a 35% market share with a recorded $31 billion worth of contract awards against an overall Mena total of $87 billion as tracked by Meed Projects, stated JLL in its 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 KSA is anticipated to rise by 3.2% in 2022, with a further annual average growth rate (AAGR) of 4% between 2023 to 2026 as indicated by Global Data.

JLL pointed out that 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% comprise ‘construction’ sector projects with residential, cultural, leisure and hospitality as sub-sector leaders, which is the driving force behind the Vision