1. Market Research
  2. > Construction Market Trends

Construction in Saudi Arabia - Key Trends and Opportunities to 2020

  • March 2016
  • 72 pages
  • Timetric
Report ID: 3758983


Table of Contents

Search Inside

The Saudi Arabian construction industry will continue to expand over the forecast period (2016–2020), following investments in transport infrastructure, healthcare, manufacturing plants, education facilities, energy and housing projects. However, low oil prices present significant negative risks to the forecast.

The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 7.05% over the forecast period, up from 6.35% during the review period (2011–2015).

The government will continue to invest in healthcare, education and infrastructure construction to diversify the country’s economy away from oil and to support economic growth. The government’s White Land Tax initiative to address the country’s housing shortage will also support industry growth.

There are, however, risks associated with the Saudi Arabian construction industry outlook, most notably low oil prices, a slowdown in economic growth, a large budget deficit and military intervention in Yemen.

Falling oil prices are expected to affect the growth prospects of the Saudi Arabian construction industry, as the country generates 73% of its total revenue from the oil sector.

Timetric’s Construction in Saudi Arabia – Key Trends and Opportunities to 2020 report provides detailed market analysis, information and insights into the Saudi Arabian construction industry including:

• The Saudi Arabian construction industry's growth prospects by market, project type and construction activity

• Analysis of equipment, material and service costs for each project type in Saudi Arabia

• Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Saudi Arabian construction industry

• Profiles of the leading companies in the Saudi Arabian construction industry

• Data highlights of the largest construction projects in Saudi Arabia

This report provides a comprehensive analysis of the construction industry in Saudi Arabia. It provides:

• Historical (2011-2015) and forecast (2016-2020) valuations of the construction industry in Saudi Arabia using construction output and value-add methods

• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by project type

• Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)

• Analysis of key construction industry issues, including regulation, cost management, funding and pricing

• Detailed profiles of the leading construction companies in Saudi Arabia

Reasons To Buy
• Identify and evaluate market opportunities using Timetric's standardized valuation and forecasting methodologies.

• Assess market growth potential at a micro-level with over 600 time-series data forecasts.

• Understand the latest industry and market trends.

• Formulate and validate strategy using Timetric's critical and actionable insight.

• Assess business risks, including cost, regulatory and competitive pressures.

• Evaluate competitive risk and success factors.

Key Highlights
• The government will cut subsidies and public spending, and increase domestic fuel prices and taxes to offset falling oil prices. A decrease in oil prices forced the government to reduce budget spending in 2016. However, the government has stated that key economic development projects will not be affected. It declared the total spending of SAR840.0 billion (US$224.0 billion) in the 2016 budget.

• Saudi Arabia is facing a housing shortage. Despite the construction of a large number of housing units, supply is relatively low when compared to demand. According to Saudi Arabia’s housing ministry, 3.0 million new housing units are required to be built by 2025 to address the shortage.

• The Council of Ministers of Saudi Arabia approved the White Land Tax law in November 2015, to tackle the country’s housing shortage and revitalize the economy. Owners of undeveloped urban land will have to pay an annual tax of 2.5% of the value of the land. Through the law, the government aims to encourage housing construction on empty urban land to avoid costly desert development.

• The construction industry will be supported by government plans to develop and expand the country’s airport infrastructure. The General Authority for Civil Aviation (GACA) is focusing on the development and modernization of airport infrastructure to support the domestic tourism industry and handle 100.0 million passengers annually by 2020. Under the GACA’s Vision 2020, the government aims to develop and expand the country’s 27 domestic, regional and international airports to increase passenger-handling capacity. With a continued falling or low oil prices, GACA announced plans in November 2015 to privatize the country’s airports by 2020 to finance the state budget.

• The Arriyadh Development Authority (ADA) is working to improve transport infrastructure in Riyadh, the country’s capital, in a bid to reduce traffic congestion, fulfil the demands of the growing population and support economic growth. Riyadh’s population in is expected to increase from 5.7 million in 2012 to 8.2 million in 2030. Accordingly, the government is constructing the Riyadh metro project, a rapid transit system, for an investment of SAR85.0 billion (US$22.5 billion). The project includes the construction of 178km of six lines and 85 stations, and is expected to be complete by 2018.

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 60 Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.

Amrita helps you find the right report:


The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

Purchase Reports From Reputable Market Research Publishers

Global Building & Infrastructure Construction Industry Databook for 20 Countries – Market Size & Forecast by Value and Volume across 40+ Market Segments in Building Construction and Infrastructure Construction (2012 – 2021)

  • $ 8900
  • Industry report
  • April 2017
  • by ConsTrack360

The global construction industry in value terms increased at a CAGR of 9.6% during 2012-2016. Over the forecast period of 2017 to 2021, the industry is expected to record a CAGR of 9.9%, increasing from ...

Global Building Construction Industry Databook for 20 Countries – Market Size & Forecast by Value and Volume across 30+ Market Segments in Building Construction (2012 – 2021)

  • $ 6900
  • Industry report
  • April 2017
  • by ConsTrack360

During the review period, value of global building construction industry recorded a CAGR of 11.3%. CAGR during the forecast period of 2017 to 2021 is expected to be 11.2% with value reaching US$ 10,682.3 ...

Analysis of Key Sectors of Colombia: Agriculture, Healthcare, Construction, Mining, Manufacturing and Transportation Markets (2017 - 2022)

  • $ 6000
  • Industry report
  • January 2017
  • by Mordor Intelligence LLP

Colombia is the 4th largest economy in Latin America after Brazil, Mexico and Argentina. Population wise Colombia is 3rd largest in Latin America accounts to 47.66 million inhabitants in 2015. It is the ...


Reportlinker.com © Copyright 2017. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.