Summary

The Saudi Arabia Commercial Construction Market was valued at USD 72.1 billion in 2024 and is projected to reach USD 98.61 billion by 2030, demonstrating strong growth with a compound annual growth rate (CAGR) of 5.2% throughout the forecast period. The market is experiencing substantial expansion, largely driven by the nation’s Vision 2030 initiative, which aims to diversify the economy away from oil dependency. Significant government investments in infrastructure, tourism, and urban development are fueling increased activity in commercial real estate, retail spaces, office buildings, and mixed-use developments. Large-scale projects like NEOM, The Red Sea Project, and Qiddiya are attracting both domestic and international investors, further boosting demand for advanced construction solutions. Additionally, regulatory changes, including more relaxed foreign investment laws and the growth of public-private partnerships (PPPs), are accelerating market growth. The rise in e-commerce and shifting consumer demands are driving the need for logistics hubs and smart commercial spaces. Sustainability is a critical factor as developers adopt green building practices and advanced technologies to meet global environmental standards. The influx of expatriates and the establishment of regional business headquarters in Saudi Arabia are increasing the demand for high-quality office spaces, hotels, and retail outlets. Despite challenges like supply chain disruptions and fluctuating material costs, the commercial construction market remains resilient, supported by strong government backing and active private sector participation. Saudi Arabia’s commercial construction market is set for sustained growth in the years ahead.
Key Market Drivers:
Vision 2030 and Government Investments
Saudi Arabia's Vision 2030 initiative is the primary driver of the commercial construction market, focusing on economic diversification, infrastructure expansion, and urban development. The government has committed substantial funding to major projects such as NEOM, The Red Sea Project, Qiddiya, and King Salman Park, which aim to position the country as a leading global business and tourism hub. These large-scale projects necessitate significant commercial infrastructure, including hotels, office spaces, retail centers, and entertainment complexes. The relaxation of foreign investment laws and the promotion of public-private partnerships (PPPs) have attracted considerable foreign direct investment (FDI), further stimulating growth. Additionally, the government’s increased spending on transport networks, airports, and smart city initiatives is enhancing connectivity and attracting global businesses. Initiatives like the Regional Headquarters (RHQ) program, which requires multinational corporations to establish their regional offices in Saudi Arabia to access government contracts, are driving demand for premium commercial office spaces. These investments are not only creating new commercial hubs but also transforming cities such as Riyadh, Jeddah, and Dammam into world-class business destinations. With ongoing policy support and financial backing, government initiatives will remain a key factor in shaping the Saudi commercial construction market.
Tourism and Hospitality Development
A major USD 10 billion tourism and hospitality development initiative is expected to boost the tourism sector, creating resorts, hotels, and leisure facilities to accommodate the growing number of visitors.
Key Market Challenges:
Supply Chain Disruptions and Rising Material Costs
One of the key challenges facing Saudi Arabia’s commercial construction market is the disruption of supply chains, leading to higher material costs and project delays. Global supply chain constraints, due to factors such as the COVID-19 pandemic, geopolitical tensions, and shipping bottlenecks, have particularly impacted Saudi Arabia, which imports a significant portion of its construction materials. The rising costs of essential materials like steel, cement, and aluminum are putting financial pressure on developers, leading to increased project costs and longer timelines. Additionally, fluctuations in global oil prices further contribute to price volatility, affecting transportation and logistics costs. Labor shortages and restrictions on foreign labor mobility have also added complexity to project execution. In response, Saudi Arabia is investing in local manufacturing capabilities and encouraging collaborations with regional suppliers to reduce reliance on imports. Developers are also exploring alternative materials and digital procurement solutions to enhance cost efficiency. Despite ongoing government initiatives to stabilize the supply chain, inflationary pressures and market uncertainties continue to pose risks, requiring stakeholders to adopt resilient procurement and cost management strategies.
Key Market Trends:
Expansion of Mixed-Use Developments
A notable trend in the Saudi Arabian commercial construction market is the increasing focus on mixed-use developments. This shift is driven by changing consumer preferences, urbanization, and government policies under Vision 2030. Developers are increasingly combining residential, commercial, retail, and entertainment spaces in single projects to optimize land use and enhance convenience. This approach aligns with Saudi Arabia’s vision of creating vibrant, walkable urban centers that meet the needs of both residents and businesses. Major projects such as King Salman Park, Qiddiya, and Diriyah Gate showcase this trend, integrating office spaces, luxury residences, shopping malls, and recreational attractions within a single development. The demand for mixed-use developments is further amplified by the growing expatriate population and rising tourism, both of which require integrated infrastructure to serve diverse needs. Additionally, businesses are seeking flexible office spaces that offer proximity to retail, dining, and recreational options, supporting a better work-life balance. The incorporation of smart city technologies into these developments enhances their appeal by providing advanced security, energy management, and seamless connectivity. As the market evolves, mixed-use projects will continue to be a dominant trend, attracting both local and international investors seeking high-return commercial real estate opportunities.
Key Market Players:
• Kabbani Construction Group
• Almabani General Contractors
• AlKifah Contracting Company
• Nesma & Partners Contracting Company Ltd.
• AL-AYUNI Company
• Construction & Planning Co. Ltd.
• Contracting & Construction Enterprises Ltd.
• Binladen Group Global Holding Company
• Al-Rashid Trading & Contracting Co.
• Umm Al Qura for Development & Construction Company
Report Scope:
This report segments the Saudi Arabia Commercial Construction Market into the following categories, in addition to detailed industry trends:
By Construction Type:
• New Construction
• Renovation
• Repair & Maintenance
By Sector:
• Healthcare & Medical Facilities
• Educational Institutions
• Hospitality
• Retail Outlets
• Corporate Offices
• Others
By End-User:
• Private
• Public
By Region:
• Riyadh
• Makkah
• Madinah
• Jeddah
• Tabuk
• Eastern Province
• Rest of Saudi Arabia
Competitive Landscape and Company Profiles:
This section provides a comprehensive analysis of the leading companies operating in the Saudi Arabia Commercial Construction Market.
Available Customizations:
TechSci Research offers customized reports based on the specific market data. Customization options include:
• Detailed analysis and profiling of additional market players (up to five).

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Table of Contents

1. Product Overview
1.1. Market Definition
1.2. Scope of the Market
1.2.1. Markets Covered
1.2.2. Years Considered for Study
1.2.3. Key Market Segmentations
2. Research Methodology
2.1. Objective of the Study
2.2. Baseline Methodology
2.3. Formulation of the Scope
2.4. Assumptions and Limitations
2.5. Sources of Research
2.5.1. Secondary Research
2.5.2. Primary Research
2.6. Approach for the Market Study
2.6.1. The Bottom-Up Approach
2.6.2. The Top-Down Approach
2.7. Methodology Followed for Calculation of Market Size & Market Shares
2.8. Forecasting Methodology
2.8.1. Data Triangulation & Validation
3. Executive Summary
4. Voice of Customer
5. Saudi Arabia Commercial Construction Market Overview
6. Saudi Arabia Commercial Construction Market Outlook
6.1. Market Size & Forecast
6.1.1. By Value
6.2. Market Share & Forecast
6.2.1. By Sector (Healthcare & Medical Facilities, Educational Institutions, Hospitality, Retail Outlets, Corporate Offices, Others)
6.2.2. By Construction Type (New Construction, Renovation, Repair & Maintenance)
6.2.3. By End-User (Private, Public)
6.2.4. By Region (Riyadh, Makkah, Madinah, Jeddah, Tabuk, Eastern Province, Rest of Saudi Arabia)
6.3. By Company (2024)
6.4. Market Map
7. Riyadh Commercial Construction Market Outlook
7.1. Market Size & Forecast
7.1.1. By Value
7.2. Market Share & Forecast
7.2.1. By Sector
7.2.2. By Construction Type
7.2.3. By End-User
8. Makkah Commercial Construction Market Outlook
8.1. Market Size & Forecast
8.1.1. By Value
8.2. Market Share & Forecast
8.2.1. By Sector
8.2.2. By Construction Type
8.2.3. By End-User
9. Madinah Commercial Construction Market Outlook
9.1. Market Size & Forecast
9.1.1. By Value
9.2. Market Share & Forecast
9.2.1. By Sector
9.2.2. By Construction Type
9.2.3. By End-User
10. Jeddah Commercial Construction Market Outlook
10.1.Market Size & Forecast
10.1.1. By Value
10.2.Market Share & Forecast
10.2.1. By Sector
10.2.2. By Construction Type
10.2.3. By End-User
11. Tabuk Commercial Construction Market Outlook
11.1.Market Size & Forecast
11.1.1. By Value
11.2.Market Share & Forecast
11.2.1. By Sector
11.2.2. By Construction Type
11.2.3. By End-User
12. Eastern Province Commercial Construction Market Outlook
12.1.Market Size & Forecast
12.1.1. By Value
12.2.Market Share & Forecast
12.2.1. By Sector
12.2.2. By Construction Type
12.2.3. By End-User
13. Rest of Saudi Arabia Commercial Construction Market Outlook
13.1.Market Size & Forecast
13.1.1. By Value
13.2.Market Share & Forecast
13.2.1. By Sector
13.2.2. By Construction Type
13.2.3. By End-User
14. Market Dynamics
14.1.Drivers
14.2.Challenges
15. Market Trends and Developments
16. Company Profiles
16.1.Kabbani Construction Group
16.1.1. Business Overview
16.1.2. Key Revenue and Financials
16.1.3. Recent Developments
16.1.4. Key Personnel/Key Contact Person
16.1.5. Key Product/Services Offered
16.2.Almabani General Contractors
16.2.1. Business Overview
16.2.2. Key Revenue and Financials
16.2.3. Recent Developments
16.2.4. Key Personnel/Key Contact Person
16.2.5. Key Product/Services Offered
16.3.AlKifah Contracting Company
16.3.1. Business Overview
16.3.2. Key Revenue and Financials
16.3.3. Recent Developments
16.3.4. Key Personnel/Key Contact Person
16.3.5. Key Product/Services Offered
16.4.Nesma & Partners Contracting Company Ltd.
16.4.1. Business Overview
16.4.2. Key Revenue and Financials
16.4.3. Recent Developments
16.4.4. Key Personnel/Key Contact Person
16.4.5. Key Product/Services Offered
16.5.AL-AYUNI Company
16.5.1. Business Overview
16.5.2. Key Revenue and Financials
16.5.3. Recent Developments
16.5.4. Key Personnel/Key Contact Person
16.5.5. Key Product/Services Offered
16.6.Construction & Planning Co. Ltd.
16.6.1. Business Overview
16.6.2. Key Revenue and Financials
16.6.3. Recent Developments
16.6.4. Key Personnel/Key Contact Person
16.6.5. Key Product/Services Offered
16.7.Contracting & Construction Enterprises Ltd.
16.7.1. Business Overview
16.7.2. Key Revenue and Financials
16.7.3. Recent Developments
16.7.4. Key Personnel/Key Contact Person
16.7.5. Key Product/Services Offered
16.8.Binladen Group Global Holding Company
16.8.1. Business Overview
16.8.2. Key Revenue and Financials
16.8.3. Recent Developments
16.8.4. Key Personnel/Key Contact Person
16.8.5. Key Product/Services Offered
16.9.Al-Rashid Trading & Contracting Co.
16.9.1. Business Overview
16.9.2. Key Revenue and Financials
16.9.3. Recent Developments
16.9.4. Key Personnel/Key Contact Person
16.9.5. Key Product/Services Offered
16.10. Umm Al Qura for Development & Construction Company
16.10.1. Business Overview
16.10.2. Key Revenue and Financials
16.10.3. Recent Developments
16.10.4. Key Personnel/Key Contact Person
16.10.5. Key Product/Services Offered
17. Strategic Recommendations
18. About Us & Disclaimer