The Kingdom accounted for 39% of the total construction projects in the region, valued at $3.9 trillion.

The construction assets sector made up 62% or $950 billion of the projects, while transportation, infrastructure, and other utilities accounted for 38% or $582 billion.

Economic growth, population growth, and modernization have made Saudi Arabia the most active player in the Middle East construction market, with the real estate sector leading the Kingdom's projects market in 2023.

The JLL report predicts a 2.1% GDP growth for Saudi Arabia in 2024 and 5.9% in 2025, attributing this to the success of the country's economic diversification strategies and progress on Vision 2030 projects.

Despite challenges like inflation, interest rates, and geopolitical tensions, JLL remains optimistic about Saudi Arabia's construction sector, which saw a record $97 billion in awarded projects in 2023, up from $60 billion in 2022.

The sector's resilience highlights the Kingdom's leadership in regional and global construction activity.

Morgan highlighted the potential impact of rising construction costs on Saudi Arabia's construction sector due to market dynamics.

Other constraints, including a labor shortage, resource availability, and an overheating market, could also affect the sector's growth.

According to a recent report by Riyad Bank and S&P Global, construction companies in Saudi Arabia reduced workforce hiring in the first quarter to manage costs and cash flow.

The report also noted the significant risk of a skilled labor shortage in the country.

Despite these challenges, JLL's analysis showed stable material availability in the first quarter.

The text suggests that while there is still a heavy dependence on imported materials such as glazing, facade systems, and timber in the local and regional markets of Saudi Arabia, the future looks promising with improvements in local manufacturing capabilities.

This improvement is attributed to the demand generated by major projects in Saudi Arabia.