Saudi Arabia’s Construction Output Expected to Reach $191bn in 2029: Knight Frank
The Kingdom's construction output value is projected to increase by 29.05 percent from 2024 to 2029, driven by growth in residential developments and giga-projects.
Riyadh: Saudi Arabia’s construction output value is expected to reach $191 billion in 2029, representing a rise of 29.05 percent compared to 2024, according to an analysis by global consulting firm Knight Frank.
The growth in residential developments, ongoing giga-projects, and increased demand for office space — particularly in Riyadh — are the key drivers behind this projected increase.
According to Vision 2030, the Kingdom aims to deliver over 1 million homes, more than 362,000 hotel keys, over 7.4 million sq.
meters of retail coverage, and more than 7.7 million sq.
meters of new office space by the end of the decade.
The Real Estate General Authority anticipates that the property market will reach $101.62 billion by 2029, with an expected compound annual growth rate of 8 percent from 2024.
In 2024, the output value for the construction, transport, and power sectors, as well as those covering oil and gas, industrial, water, and chemical in the Kingdom expanded by 4.6 percent year on year to reach $148 billion.
The anticipated growth in Saudi Arabia’s construction output aligns with a broader trend observed across the GCC region, where countries are pursuing economic diversification efforts.
Faisal Durrani, partner, head of research for Knight Frank in the Middle East and North Africa, noted that construction contracts worth more than $215.4 billion were awarded across Saudi Arabia between 2020 and 2025, highlighting the government’s ambition to make the Kingdom a center for wealth generation and trade not only within the GCC but globally.
Riyadh is expected to be at the forefront of this development, with more than $135.2 billion in contracts awarded since 2020 — representing 63 percent of the total across the Kingdom.
The city’s transport system is also undergoing rapid upgrades, including the Riyadh Metro project, which features six lines spanning 176 km and includes 85 stations.
Knight Frank stated that over $5 billion is being spent on major road projects to support the city's expansion.
With the population of Riyadh projected to increase to 10 million by 2030, the investments in its transport upgrade program have transformed it into one of the most innovative urban experiences in the world.
Knight Frank also highlighted the growth of Riyadh as a commercial hub, with rents for Grade A office spaces reaching SR2,700 ($719.95) per sq.
meter — marking a year-on-year rise of 23 percent.
The firm noted that giga-projects in Saudi Arabia are emerging as major hubs for construction activities.
Projects such as the $50 billion New Murabba development and the $685.5 billion real estate plan centered on giga projects demonstrate the scale and ambition behind these initiatives, promising benefits to both residents and businesses in the Kingdom.
The growth in residential developments, ongoing giga-projects, and increased demand for office space — particularly in Riyadh — are the key drivers behind this projected increase.
According to Vision 2030, the Kingdom aims to deliver over 1 million homes, more than 362,000 hotel keys, over 7.4 million sq.
meters of retail coverage, and more than 7.7 million sq.
meters of new office space by the end of the decade.
The Real Estate General Authority anticipates that the property market will reach $101.62 billion by 2029, with an expected compound annual growth rate of 8 percent from 2024.
In 2024, the output value for the construction, transport, and power sectors, as well as those covering oil and gas, industrial, water, and chemical in the Kingdom expanded by 4.6 percent year on year to reach $148 billion.
The anticipated growth in Saudi Arabia’s construction output aligns with a broader trend observed across the GCC region, where countries are pursuing economic diversification efforts.
Faisal Durrani, partner, head of research for Knight Frank in the Middle East and North Africa, noted that construction contracts worth more than $215.4 billion were awarded across Saudi Arabia between 2020 and 2025, highlighting the government’s ambition to make the Kingdom a center for wealth generation and trade not only within the GCC but globally.
Riyadh is expected to be at the forefront of this development, with more than $135.2 billion in contracts awarded since 2020 — representing 63 percent of the total across the Kingdom.
The city’s transport system is also undergoing rapid upgrades, including the Riyadh Metro project, which features six lines spanning 176 km and includes 85 stations.
Knight Frank stated that over $5 billion is being spent on major road projects to support the city's expansion.
With the population of Riyadh projected to increase to 10 million by 2030, the investments in its transport upgrade program have transformed it into one of the most innovative urban experiences in the world.
Knight Frank also highlighted the growth of Riyadh as a commercial hub, with rents for Grade A office spaces reaching SR2,700 ($719.95) per sq.
meter — marking a year-on-year rise of 23 percent.
The firm noted that giga-projects in Saudi Arabia are emerging as major hubs for construction activities.
Projects such as the $50 billion New Murabba development and the $685.5 billion real estate plan centered on giga projects demonstrate the scale and ambition behind these initiatives, promising benefits to both residents and businesses in the Kingdom.
