Saudi Arabia Commercial Construction Market: Vision 2030 Projects & Growth Momentum

According to IMARC Group's latest research publication, Saudi Arabia commercial construction market size reached USD 37,031.21 Million in 2025. The market is projected to reach USD 73,357.10 Million by 2034, exhibiting a growth rate of 7.89% during 2026-2034.

How AI is Reshaping the Future of Saudi Arabia Commercial Construction Market

• BIM and Digital Twins Integration: AI-powered Building Information Modeling creates virtual replicas of commercial buildings, allowing contractors to detect design conflicts before construction begins, reducing rework costs by up to 30% on mega-projects across the Kingdom.
• Generative Design for Optimization: AI algorithms process project constraints like cost, materials, and structural goals to generate thousands of optimized design alternatives, accelerating creativity while ensuring alignment with sustainability mandates and regulatory compliance standards.
• Predictive Analytics for Project Management: Advanced analytics analyze historical and real-time data to forecast delays and cost overruns, enabling managers to adjust schedules proactively, with 93% of Saudi firms now implementing AI integration strategies for construction workflows.
• AI-Powered Safety Monitoring: Computer vision systems analyze CCTV footage in real-time to detect unsafe conditions, sending instant alerts when workers approach hazards without proper equipment, significantly reducing incidents on construction sites throughout Vision 2030 giga-projects.
• Automated Post-Construction Management: Digital twin technology monitors building equipment performance after handover, predicting maintenance needs and optimizing facility operations for commercial properties, hotels, and retail developments, extending asset lifecycles and reducing operational costs.

How Vision 2030 is Revolutionizing Saudi Arabia Commercial Construction Industry

Vision 2030 is fundamentally reshaping Saudi Arabia's commercial construction landscape through unprecedented mega-project investments and economic diversification strategies. Contract awards in the first quarter reached SAR 118.8 billion, representing a 79% year-over-year increase driven by flagship developments. NEOM, the $500 billion futuristic megacity, is advancing with 20% of infrastructure already completed alongside major attractions like The Line's vertical city and Oxagon's floating industrial hub. Qiddiya Entertainment City targets 17 million annual visitors with contracts worth $10 billion currently in execution, including Six Flags Qiddiya City and Aquarabia Water Theme Park. The Red Sea Project aims to attract one million tourists annually through luxury coastal tourism infrastructure across 28,000 square kilometers. In Riyadh, the Mukaab project launched with SAR 187.5 billion investment, featuring a 400-meter cube-shaped structure that will become the world's largest building with two million square feet of mixed commercial space. These giga-projects are generating hundreds of thousands of jobs while positioning the Kingdom as a global hub for innovation, commerce, and tourism.

Access Industry Trends and Forecasts in a Sample Report

Saudi Arabia Commercial Construction Market Trends & Drivers:

The market is experiencing exceptional growth through massive hospitality and tourism infrastructure expansion aligned with government initiatives to transform Saudi Arabia into a premier global destination. Authorities announced plans to develop 362,000 new hotel rooms by 2030 through a $110 billion hospitality sector transformation, supporting targets to attract 150 million domestic and international visitors annually. The number of licensed hospitality facilities reached 3,950, representing a 99% increase, while licensed hotel rooms surged to 443,200, marking 107% year-on-year growth. Religious tourism remains a primary driver, with 16.9 million international pilgrims performing Umrah, a 25% increase, while over 252,000 hotel rooms are planned or under construction in Makkah and Madinah alone. International arrivals reached 30 million, up from 27.4 million, demonstrating sustained upward trajectory. The hospitality construction pipeline includes 275 projects with 67,614 rooms under development, with 78% classified in luxury and upscale categories, reflecting the Kingdom's positioning as a high-end destination.

Public-Private Partnerships have emerged as a cornerstone mechanism accelerating commercial construction across the Kingdom, with nearly 200 PPP opportunities announced across 17 sectors. The National Center for Privatization released updated guidelines and standardized templates in recent years to streamline project procurement. In June, major PPP opportunities were announced in Makkah and Dammam, including a 219,416-square-meter mixed-use healthcare and commercial development featuring a 200-bed long-term care hospital, 100-bed multi-specialty hospital, and regional shopping mall under a Build-Own-Operate-Transfer model with a 30-year concession. Mixed-use developments combining residential, retail, office, and entertainment functions are gaining prominence through projects like King Salman Park, Diriyah Gate, and Sports Boulevard in Riyadh. Diriyah Company awarded a $600 million construction contract for 400 retail units in Diriyah Square, bringing total contract awards to over SAR 100 billion since inception. The PPP framework is attracting substantial international investment, with over 100 companies submitting expressions of interest for the Abha Airport project valued at $500 million.

Modern office space demand and retail construction are surging across major cities as the Kingdom attracts regional business headquarters and expands its commercial real estate footprint. Riyadh alone accounted for $135.2 billion of awarded contracts since 2020, representing 63% of the Kingdom's total construction value. Over 184,000 square meters of retail developments emphasizing food, beverage, entertainment, and public spaces are set for completion, while major cities are experiencing unprecedented transformation. The New Murabba district will span 19 square kilometers in northwest Riyadh, including 104,000 residential units, 9,000 hotel rooms, 980,000 square meters of retail space, and over 80 entertainment venues. Technology companies are making substantial commitments, with IBM investing $250 million in a software lab in Riyadh, ServiceNow contributing $500 million for regional headquarters and two data centers, and Zoho Corp allocating $133 million for data centers in Riyadh and Jeddah to meet growing demand for cloud services, gaming, and 5G technologies.

Saudi Arabia Commercial Construction Market Industry Segmentation:

The report has segmented the market into the following categories:

End User Insights:

• Office Building Construction
• Retail Construction
• Hospitality Construction
• Institutional Construction
• Others

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Commercial Construction Market

• January 2025: The Riyadh Metro, with 85 stations across six lines spanning 176 kilometers, earned the Guinness Record as the world's longest driverless train, representing a landmark achievement in the Kingdom's transportation infrastructure and urban development.
• March 2025: Saudi Arabia announced plans to develop 362,000 new hotel rooms by 2030 through a $110 billion hospitality sector transformation, supporting Vision 2030's target of attracting 150 million domestic and international visitors annually.
• June 2025: The Nemetschek Group entered a Memorandum of Understanding with Nesma Infrastructure & Technology to accelerate digital transformation of Saudi Arabia's construction and infrastructure industries, supporting Vision 2030 goals through advanced BIM and digital solutions.
• July 2025: AECOM unveiled a strategic collaboration with the Special Integrated Logistics Zones Company (SILZ), advancing the Kingdom's position as a global leader in integrated logistics and supporting economic diversification under Vision 2030.
• July 2025: Diriyah Company awarded a $600 million construction contract for 400 retail units in Diriyah Square, bringing its total contract awards to over SAR 100 billion since inception.
• August 2025: Almabani was awarded contracts worth $870 million by the Royal Commission for Riyadh City for road infrastructure projects, covering design and construction of key schemes supporting urban development.
• October 2025: Construction commenced on the Mukaab project with a projected investment of SAR 187.5 billion, featuring a 400-meter cube-shaped structure that will become the world's largest building with two million square feet of mixed commercial space.
• November 2025: ITT completed Phase 2 of its $25 million expansion at its Dammam Industrial Process facility, doubling capacity to approximately 30,000 square meters to handle complex equipment packages for regional mega-projects.

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