Saudi Arabia Commercial Construction Market Size, Share, Trends and Forecast by End User and Region, 2026-2034

Saudi Arabia Commercial Construction Market Overview:

The 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 (CAGR) of 7.89% during 2026-2034. The market is driven by ambitious Vision 2030 mega-infrastructure projects transforming the Kingdom's commercial real estate landscape, rapid expansion of tourism and hospitality facilities attracting substantial domestic and international investments, and increasing adoption of public-private partnerships enabling large-scale mixed-use developments. Additionally, growing demand for modern office spaces, retail destinations, and institutional facilities is expanding the Saudi Arabia commercial construction market share.

Saudi Arabia Commercial Construction Market Trends:

Vision 2030-Driven Giga Projects Reshaping Commercial Infrastructure

The Saudi Arabia commercial construction sector is experiencing unprecedented transformation through large-scale giga projects aligned with Vision 2030, the Kingdom's comprehensive national strategy to diversify the economy and reduce oil dependence. These ambitious developments encompass smart cities, economic zones, and integrated commercial complexes that are fundamentally reshaping the commercial real estate landscape across multiple regions. Major initiatives include NEOM, a $500 billion futuristic megacity development, Qiddiya Entertainment City targeting 17 million visitors annually, and the Red Sea Project focusing on luxury coastal tourism infrastructure. In October 2024, 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 including retail, offices, dining, and entertainment facilities within Riyadh's New Murabba development. These giga projects are creating substantial demand for commercial construction services, with contract awards in the first quarter of 2024 reaching SAR 118.8 billion, representing a 79 percent year-over-year increase. The projects are attracting significant foreign direct investment and positioning Saudi Arabia as a global hub for innovation, commerce, and tourism, while generating hundreds of thousands of jobs and contributing substantially to non-oil GDP growth.

Rapid Hospitality and Tourism Infrastructure Expansion

The Kingdom is witnessing extraordinary growth in hospitality and tourism construction, driven by government initiatives to transform Saudi Arabia into a premier global tourism destination. In March 2024, authorities announced plans to develop 362,000 new hotel rooms by 2030 through a USD 110 billion hospitality sector transformation, supporting the Vision 2030 target of attracting 150 million domestic and international visitors annually. The sector has experienced remarkable momentum, with the number of licensed hospitality facilities reaching 3,950 in 2024, representing a 99 percent increase from the previous year, while licensed hotel rooms surged to 443,200, marking a 107 percent year-on-year growth. Major hospitality developments are concentrated in religious tourism hubs, with over 252,000 hotel rooms planned or under construction in Makkah and Madinah alone, alongside luxury resort construction in emerging destinations like NEOM's Sindalah island, the Red Sea Project, and AMAALA wellness tourism zones. Religious tourism continues as a primary driver, with 16.9 million international pilgrims performing Umrah in 2024, a 25 percent increase from the previous year, while leisure, business, and family visit segments are rapidly gaining ground. International arrivals reached 30 million in 2024, up from 27.4 million in 2023, demonstrating a sustained upward trajectory. The hospitality construction pipeline includes 275 projects with 67,614 rooms currently under development, with 78 percent classified in luxury, upscale, and upper-upscale categories, reflecting the Kingdom's positioning as a high-end tourism destination. Global hotel brands, including Four Seasons, Six Senses, Ritz-Carlton, and Equinox, are launching properties across Saudi Arabia, bringing international hospitality standards and driving the Saudi Arabia commercial construction market growth across both primary and secondary cities.

Public-Private Partnerships Enabling Mixed-Use Development

Public-Private Partnerships have emerged as a cornerstone mechanism for accelerating commercial construction and infrastructure development across Saudi Arabia, with nearly 200 PPP opportunities announced across 17 sectors as of 2024. The National Center for Privatization & PPP has strengthened the Kingdom's capability to structure complex, investor-friendly partnerships, releasing updated guidelines, standardized templates, and risk-allocation frameworks in 2023 and 2024 to streamline project procurement and implementation. In June 2025, major PPP opportunities were announced in Makkah and Dammam, including a 219,416-square-meter mixed-use healthcare and commercial development in Makkah under a Build-Own-Operate-Transfer model with a 30-year concession, integrating a 200-bed long-term care hospital, 100-bed multi-specialty hospital, and regional shopping mall. Mixed-use developments combining residential, retail, office, and entertainment functions are gaining prominence, exemplified by projects like King Salman Park, Diriyah Gate, and the Sports Boulevard in Riyadh, which integrate commercial spaces within broader lifestyle destinations. In 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. The PPP framework is attracting substantial international investment, with over 100 companies submitting expressions of interest for the Abha Airport PPP project valued at $500 Million, demonstrating growing global confidence in the Saudi PPP model. These partnerships are particularly active in retail, hospitality, healthcare, and mixed-use sectors, distributing project risks, accelerating construction timelines, and enabling private sector innovation while allowing the government to focus strategic resources on priority initiatives. The approach aligns with Vision 2030 objectives to increase private sector GDP contribution from 40 percent to 65 percent, generating employment, fostering entrepreneurship, and building a more diversified, resilient economy less dependent on oil revenues.

Saudi Arabia Commercial Construction Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2026-2034. Our report has categorized the market based on end user.

End User Insights:

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

The report has provided a detailed breakup and analysis of the market based on the end user. This includes office building construction, retail construction, hospitality construction, institutional construction, and others.

Regional Insights:

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

A detailed breakup and analysis of the market based on the region have also been provided in the report. This includes Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Saudi Arabia Commercial Construction Market News:

• July 2025: AECOM, a leading name in global infrastructure, unveiled a strategic collaboration with the Special Integrated Logistics Zones Company (SILZ), Saudi Arabia’s foremost developer and operator of logistics hubs. The alliance aims to advance the Kingdom’s position as a worldwide leader in integrated logistics, supporting the objectives of Saudi Vision 2030. Through this partnership, both organizations seek to drive economic diversification, promote sustainable growth, and strengthen Saudi Arabia’s role in international trade and supply chain connectivity.
• June 2025: The Nemetschek Group entered a Memorandum of Understanding (MoU) with Nesma Infrastructure & Technology (NIT), a prominent Saudi Arabian firm specializing in infrastructure and technology. This collaboration is intended to fast-track the digital transformation of Saudi Arabia’s construction and infrastructure industries, supporting the goals outlined in the Kingdom’s Vision 2030.

Saudi Arabia Commercial Construction Market Report Coverage:

Key Questions Answered in This Report:

• How has the Saudi Arabia commercial construction market performed so far and how will it perform in the coming years?
• What is the breakup of the Saudi Arabia commercial construction market on the basis of end user?
• What is the breakup of the Saudi Arabia commercial construction market on the basis of region?
• What are the various stages in the value chain of the Saudi Arabia commercial construction market?
• What are the key driving factors and challenges in the Saudi Arabia commercial construction market?
• What is the structure of the Saudi Arabia commercial construction market and who are the key players?
• What is the degree of competition in the Saudi Arabia commercial construction market?

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia commercial construction market from 2020-2034.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia commercial construction market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia commercial construction industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.