Our latest report on Saudi Arabia's construction sector projects for 2026 provides the most up-to-date market and economic data and forecasts the impact of trends on the construction sector in the short and long term. As 2026 progresses, the market remains strong, with new projects announced under Vision 2030, ensuring a robust pipeline of construction activity across Saudi Arabia.
Overall, this report will serve as a valuable resource for construction companies in Saudi Arabia and investors who are looking for a way to expand in Saudi Arabia.
According to its October 2025 report, the International Monetary Fund (IMF) revised its 2025 GDP growth forecast for the Kingdom to 4%, up from its April estimate of 3%. The 2026 growth forecast was also revised upward to 4% from 3.7%. These updated projections reflect the continued role of economic reforms and diversification efforts in supporting stable economic performance.
The Kingdom continues its strong economic expansion trajectory, driven by ongoing reforms and diversification initiatives under its ambitious Vision 2030 development strategy, which aims to promote sustainable growth and economic transformation.
The projected distribution of construction contracts in the Kingdom for 2026 highlights the diversity of investments across key sectors, with the top five sectors holding the largest market share, driven by urban development projects and major initiatives linked to Vision 2030.
The KSA's Vision 2030 emphasizes the strategic goal of the nation to change its primary industries, particularly the non-oil sector, and contribute to the GDP of the Kingdom, which has been taken into consideration when planning the budget.
Mega-projects—including NEOM, the Red Sea Project, Qiddiya, Diriyah, and the New Square—continue to drive the construction sector's momentum. This momentum is accelerating as the Kingdom prepares to host major global events, most notably Expo 2030 in Riyadh and the 2034 FIFA World Cup, providing a significant boost to the development of the hospitality, transportation, and urban infrastructure sectors.
By focusing on technological advancements and sustainable building technologies, these initiatives aim to transcend traditional construction frameworks, paving the way for the development of future urban systems aligned with the ambitious goals of Saudi Vision 2030.
Saudi Arabia is a major hub for industrial services. The country's economy has witnessed gradual growth, and the government has made significant efforts to promote the expansion of construction companies and the industrial services sector. The Saudi market offers numerous opportunities in fields such as engineering, maintenance, construction, logistics, and consulting.
The value of the industrial services market in the Kingdom was estimated at US$39 billion in 2019 and is projected to grow at a compound annual growth rate (CAGR) of 5.1%, reaching US$54 billion by 2026.
KSA is among the GCC countries where the innovations and trends seen in the global construction business have an impact on the building sector. Saudi Arabia has demonstrated a strong desire to embrace green and sustainable building principles.
It emphasizes utilizing energy-efficient designs and environmentally friendly materials without sacrificing the caliber of construction. KSA aims to transform the construction companies in Saudi Arabia, which is essential to expanding the nation's economy, by adhering to the most recent trends in the industry.
The size of the Saudi Arabian infrastructure sector market is projected to be USD 44.81 billion in 2029 and is anticipated to increase at a CAGR of 4.48%. Saudi Arabia has declared plans to invest trillions of dollars in infrastructure, to diversify its economy away from oil and establish itself as a major international center for logistics and investment.
The Power industry is growing due to renewable energy investments, including solar, wind, and energy storage projects. In 2025, the National Renewable Energy Programme (NREP) announced US$8.3billion for seven large-scale plants (15,000MW) in July and over US$2.4billion for five additional projects (4,500MW) under Round 6 in October.
