Doha, Qatar: Saudi Arabia is poised to become the world’s largest construction market as the kingdom pours vast amounts of money into projects aimed at diversifying the economy, says real estate consultancy group Knight Frank.
Bloomberg quoted a recent research report by the London-based form said that the country’s total construction output value is forecast to reach $181.5 billion by the end of 2028, up almost 30% from 2023 levels.
Much of that is likely to come from residential property and giga projects, alongside other developments that form part of the country's mission to transform the oil-dependent economy, which also aims to bring in an influx of foreign tourists.
Saudi Arabia is currently witnessing a historical transformation with construction projects standing out in their design scale and value said Mohamed Nabil, regional partner and head of project and development services for the Middle East and North Africa at Knight Frank.
Since the Vision 2030 initiative was introduced eight years ago, Saudi Arabia has launched projects with a value of more than $1.25 trillion, according to Knight Frank’s research.
Knight Frank stated that in 2023 alone, more than $140 billion of construction contract awards were granted, majority of which were in Riyadh, where Saudi Arabia aims to grow its population to 10 million by 2030, when it will host the World Expo and possibly for the World Cup in 2034.
