The construction industry in Saudi Arabia is expected to grow by 4% in real terms in 2025, supported by investments in the housing, energy, and transport infrastructure sectors, coupled with investments in preparation for the FIFA World Cup 2034 event that will be held in Riyadh.

According to the General Authority for Statistics (GaStat), the total gross fixed capital formation (GFCF) grew by 4% year-on-year (YoY) in the first half of 2025, followed by an annual growth of 1.6% in 2024. The industry’s growth in 2025 will also be supported by investments as part of the 2025 Budget that was approved in November 2024. The budget includes a total expenditure of SAR1.3 trillion ($346.7 billion) for 2025, compared to the budget of SAR1.251 trillion ($333.6 billion) in 2024.

The construction industry is expected to record an annual average growth rate of 5.4% from 2026 to 2029, supported by the government’s focus on boosting the tourism sector, coupled with investments in the industrial, housing and sports infrastructure projects. The government plans to increase the contribution of the tourism sector to the overall GDP from 3% in 2019 to 10% by 2030, as part of Saudi Arabia’s National Tourism Strategy.

Under the Saudi Vision 2030 Plan, the government aims to increase homeownership from 65.4% in 2024 to 70% by 2030 and target to increase the number of industrial establishments in the country from 8,800 in 2019 to 36,000 in 2035. In line with this goal, in August 2025, the Saudi Arabian government launched a tripartite agreement between the Real Estate Development Fund (REDF), the National Housing Company (NHC), and the Saudi National Bank (SNB) to deliver over 40,000 housing units across 24 residential projects nationwide.

Source: Business wire