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Sources: https://mp.weixin.qq.com/s/A2wnZQCv3ggYE7r2ui-bGg
A report by real estate consultancy group Knight Frank suggests that Saudi Arabia could become the largest construction market in the world. The kingdom is pouring significant funds into projects aimed at reforming and diversifying its economy.
2. Construction machinery made in China
3. Earth-moving equipment made in China
Digital render of Neom and Oxagon port
The UK-based firm predicted in its “Construction Industry Landscape Assessment for the First Half of 2024” that by the end of 2028, the total output value of Saudi Arabia’s construction will reach $181.5 billion.
If this figure is achieved, it would represent a growth of nearly 30% from the industry’s output value of $141.5 billion in 2023.
This growth is driven by the ambition to implement the “Vision 2030” plan, which aims to transform the national economy and reduce reliance on oil revenues.
Saudi Arabia hosts some of the world’s largest construction projects, such as NEOM. However, some of these projects have recently been scaled back. Mohamed Nabil, a partner and the Head of Project and Development Services at Knight Frank Middle East and North Africa, said, “We are currently witnessing a historic transformation taking place in Saudi Arabia, with construction projects standing out in terms of design scale and value.”
According to Knight Frank’s research, since the “Vision 2030” plan was proposed eight years ago, Saudi Arabia has initiated projects worth more than $1.25 trillion.
In 2023 alone, construction contracts awarded exceeded $140 billion. A majority of the contracts were in Riyadh, with Saudi Arabia aiming to increase the population of the capital to 10 million by 2030.
In conclusion, while the Kingdom of Saudi Arabia is certainly on track to redefine the global construction market by rapidly scaling up its output, whether it will reign as the world’s largest is contingent upon a multitude of factors. These include the effective continuation of the Vision 2030 objectives, the successful navigation of any economic turbulence, and the proactive management of socio-environmental impacts. What is clear, though, is that the future holds a wealth of transformative potential for Saudi Arabia’s construction landscape, As Saudi prepares to host the World Expo in 2030 and the FIFA World Cup in 2034, the world will be keenly watching this space.
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