Saudia Arabia is transforming fast. With a US$1.7tn pipeline and growth beyond the giga projects, the Kingdom is rapidly reshaping its economy and built environment. But rising costs, labour gaps and supply chain strain mean strategy matters more than ever.
Our latest Kingdom of Saudi Arabia Market Intelligence Report brings you an in-depth look at the trends, opportunities and pressures shaping the market in 2025 – and what they mean for you.
Economic overview
Saudi Arabia’s economic strategy is delivering results. In 2024, real GDP rose by 1.5%, supported by a 4.3% increase in non-oil activity. Sectors such as real estate, tourism and infrastructure are attracting record investment, with inflation holding steady at 2.0%, despite upward pressure on rents and utilities.
Beyond the giga projects
Almost US$1tn has already been invested in sectors like tourism, sports and culture – generating over 1.6 million jobs and reshaping the urban and economic landscape. Industrial and logistics assets remain in high demand, with warehouse occupancy at over 97% in Riyadh and Jeddah.
Meanwhile, emerging sectors such as digital infrastructure and mining are gathering pace. US$14.9bn has been committed to AI and cloud tech, and the Kingdom holds an estimated US$2.5tn in untapped mineral reserves – creating long-term opportunities beyond thecurrent construction cycle.
“Demand for skilled labour remains high. This is especially true in mechanical engineering and plumbing (MEP) trades, finishing roles and green-collar jobs. This is creating competition across the supply chain.”
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Pressure points in delivery
Riyadh is now one of the most expensive cities in the region to build in, with average construction costs reaching US$3,112 per m². Skilled labour remains in short supply – especially in MEP trades, finishing, and green construction – driving up competition across the supply chain.
Lead times for materials and equipment have also increased, now reaching up to 25 weeks in some cases. But the outlook remains positive. Profit margins are holding in key sectors like office fit-outs, and new procurement laws, Saudisation initiatives and digital construction practices are helping reshape how projects are delivered.
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