GCC Construction Market Size to Surpass USD 226.2 Billion by 2033: Trends & Forecast

GCC Construction Market Overview

Market Size in 2024: USD 147.1 Billion

Market Size in 2033: USD 226.2 Billion

Market Growth Rate 2025-2033: 4.9%

According to IMARC Group’s latest research publication, “GCC Construction Market Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", the GCC construction market size reached USD 147.1 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 226.2 Billion by 2033, exhibiting a growth rate (CAGR) of 4.9% during 2025-2033.

How AI is Reshaping the Future of GCC Construction Market

• AI is boosting the GCC construction market, with its integration automating tasks like project scheduling and resource allocation, driving the market size to over USD 75 million recently and rising rapidly. This tech improves efficiency, safety, and sustainability on construction sites.
• Governments in the GCC back AI aggressively: UAE’s AI Strategy and Saudi Arabia’s Vision 2030 are strong drivers, funneling investments into AI research hubs, innovation, and strategic tech partnerships boosting construction tech adoption.
• AI-powered predictive analytics enable GCC construction firms to forecast risks and manage resources smartly, helping avoid delays and cost overruns while enhancing safety on major projects such as NEOM.
• Leading construction companies in the region adopt AI for advanced project planning, virtual modeling, and asset management, which reduces downtime, cuts expenses, and improves communication among stakeholders.
• AI also supports sustainability goals through tools that optimize energy use and monitor emissions, aligning with the GCC's green upskilling and net-zero initiatives to secure environmentally responsible construction.

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GCC Construction Market Trends & Drivers:

The GCC construction market is being power-driven by massive government investments in transformative mega-projects and infrastructure developments. Countries like Saudi Arabia and the UAE are leading the charge with game-changing initiatives such as NEOM and the Red Sea Project, as well as ambitious urban master plans like Dubai 2040. These projects alone contribute to more than half of the total contract awards in the region. The push for robust transport networks—including railways, airports, and roads—accounts for nearly 30% of ongoing construction awards, highlighting how infrastructure remains the backbone fueling market expansion.

Sustainability has emerged as a key trend shaping GCC construction, with governments mandating green building codes and the adoption of energy-efficient technologies. Eco-friendly designs and renewable energy plants are becoming commonplace in new developments. This shift toward sustainable practices is underpinned by innovations such as Building Information Modeling (BIM), drones, and IoT-enabled site management tools, which not only improve environmental outcomes but also enhance operational efficiencies. Modular and prefabricated construction methods are gaining ground as well, allowing faster project delivery and better cost control while aligning with sustainability goals.

A third driver revolutionizing the GCC construction scene is the surge in public-private partnerships (PPPs). This model is broadening beyond traditional utilities to include social infrastructure such as healthcare, education, and tourism facilities. The regulatory landscape is becoming friendlier for foreign investors, boosting confidence and participation in landmark projects. For example, Abu Dhabi has recently finalized major PPP engagements in schools, road lighting, and student accommodation, with some projects winning global recognition. These collaborations help share risks while accelerating project delivery, ultimately fueling sustained construction growth in the region.

GCC Construction Industry Segmentation:

The report has segmented the market into the following categories:

Product Type Insights:

• Still Bottled Water
• Carbonated Bottled Water
• Flavored Bottled Water
• Mineral Bottled Water

Distribution Channel Insights:

• Supermarkets/Hypermarkets
• Retailers
• Stores
• On-Trade
• Others

Country Insights:

• Saudi Arabia
• UAE
• Qatar
• Bahrain
• Kuwait
• Oman

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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 GCC Construction Market

• August 2025: NEOM’s Investment Fund announced a strategic partnership with MemryX, a US-based semiconductor startup, to develop energy-efficient edge AI chips. These chips will power the futuristic city’s smart infrastructure, including autonomous mobility, digital twins, and IoT networks, enhancing real-time data processing while minimizing energy consumption, reinforcing NEOM’s position as a global hub for high-tech construction innovation.
• July 2025: Sharjah is implementing a “smart tunnel” system on five road tunnels through the Hajar Mountains, using advanced sensors, AI-powered surveillance, ventilation controls, and software. Developed by Austria's Kapsch TrafficCom, this project aims to improve tunnel safety, monitor environmental conditions in real-time, and reduce travel times on this key trade route, marking a significant step toward smart transport infrastructure in the region.
• May 2025: The 2025 Construction Startup Competition opened applications, backed by industry leaders like Cemex Ventures, Haskell’s Dysruptek, and Hilti. The contest focuses on green construction, productivity, and supply chain innovation. GCC-based startups are poised to showcase cutting-edge solutions that address sustainability challenges and enhance construction efficiency, reflecting the region’s growing commitment to digital transformation and eco-friendly building practices.

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IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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