Saudi Arabia Construction Aggregates Market

Saudi Arabia Construction Aggregates Market Overview:

The Saudi Arabia construction aggregates market size reached USD 20.5 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 31.7 Billion by 2033, exhibiting a growth rate (CAGR) of 4.9% during 2025-2033. The market is driven by Vision 2030-led giga-projects, which require vast quantities of aggregates for large-scale infrastructure and urban development. Additionally, the expansion of transportation networks and affordable housing programs under Sakani further stimulates demand for sand, gravel, and crushed stone. Growing emphasis on sustainable construction, supported by recycling initiatives and green regulations, will further augment the Saudi Arabia construction aggregates market share.

Saudi Arabia Construction Aggregates Market Trends:

Expansion of residential housing developments

The rapid expansion of residential housing developments in Saudi Arabia is driving strong demand for construction aggregates, such as sand, gravel, and crushed stone. With a growing population and government-backed housing initiatives under Vision 2030, large-scale projects are underway to provide affordable and modern living spaces. These developments require extensive use of aggregates for foundations, concrete, and infrastructure within residential communities. Rising urbanization and the need to accommodate young and middle-income households are further accelerating aggregate utilization. Private sector involvement and foreign investments in real estate are also contributing to sustained demand. As housing construction continues to broaden across major cities and new urban zones, the market is positioned for significant growth, with residential developments acting as a key driver. In February 2025, the real estate development company of Saudi Arabia, ROSNH Group, commenced the initial sales phase for ALMANAR, a new residential community project in the sacred city of Makkah, thereby enhancing its network of communities throughout the Kingdom. The residential community featured a wide selection of homes within one area, along with various amenities like shops, schools, and parks.

Large-scale road and highway construction projects

The construction of large-scale road and highway projects is significantly catalyzing the demand for aggregates in Saudi Arabia. As part of its infrastructure modernization plan and Vision 2030 objectives, the government is investing heavily in expanding road networks, highways, and expressways to improve connectivity between cities, industrial zones, and tourist destinations. In February 2025, the Royal Commission for Riyadh City (RCRC) revealed 8 road initiatives totaling more than SR8 Billion in Riyadh. The project focused on enhancing the capital's transportation network, facilitating better links among different roads, and positioning it as a key hub for sustainable transport and logistics services. Aggregates, such as crushed stone and sand, are essential for asphalt, road bases, and drainage systems, making them indispensable in these large-scale projects. The increasing movement of goods and people has amplified the urgency for well-structured transport infrastructure, further propelling aggregate usage.

Increasing tourism activities

Rising tourism activities are impelling the market growth in Saudi Arabia. As per the information published by the Saudi Minister of Tourism, the kingdom experienced 30 Million international arrivals in 2024. With initiatives like NEOM, the Red Sea Project, and the expansion of hospitality and entertainment infrastructure, the demand for aggregates used in hotels, resorts, airports, and recreational facilities is surging. Tourism-oriented projects often involve large-scale construction requiring durable materials for both structural and aesthetic purposes. As Saudi Arabia is seeking to diversify its economy beyond oil, the tourism sector is central to driving new construction activities. Rising international visitor numbers and domestic travel trends are adding momentum to this development.

Key Growth Drivers of Saudi Arabia Construction Aggregates Market:

Increasing public-private partnerships (PPPs)

Rising PPPs are playing a pivotal role in fueling the market growth by accelerating infrastructure and construction activities. Through PPP models, the government is leveraging private sector funding and expertise to implement large-scale projects in utilities and urban development. These projects rely heavily on aggregates for concrete, asphalt, and structural applications. By sharing risks and responsibilities, PPPs ensure the timely execution of construction while driving consistent material demand. Such collaborations are also attracting international investors and contractors, further increasing project volume and aggregate utilization. With Vision 2030 promoting diversified economic growth and infrastructure enhancement, PPPs continue to expand, thereby creating a sustained and growing need for aggregates in the Saudi construction landscape.

Rising quarrying and mining activities

The expansion of quarrying and mining activities in Saudi Arabia are offering a favorable market outlook. With rising demand from residential, commercial, and infrastructure projects, the Kingdom has increased investments in quarrying operations for sand, gravel, and crushed stone. Improved mining technologies and government support for resource development aid in enhancing production efficiency and availability. Local aggregate supply reduces reliance on imports, stabilizes costs, and ensures timely project execution. Additionally, private and foreign companies are entering the quarrying sector, increasing competitiveness and supply capacity. As the construction industry continues to thrive under Vision 2030, the parallel growth in quarrying and mining operations ensures a robust supply chain, solidifying their role as a key driver of the market.

Supportive government policies

Supportive government policies are strongly contributing to the growth of the market in Saudi Arabia by facilitating infrastructure expansion and industrial development. Policies under Vision 2030 are encouraging large-scale investments in housing, transportation, and tourism, which directly translate into higher demand for aggregates. Streamlined regulations for oil and gas exploration activities further ensure steady material supply to meet market needs. Financial incentives, project financing models, and land-use reforms also attract private and international investors, boosting construction activities. Additionally, government initiatives to diversify the economy and reduce dependence on oil revenues are creating a pipeline of projects that sustain aggregate demand. By providing a clear and favorable policy framework, the Saudi government ensures long-term growth prospects for the construction aggregates market across the Kingdom.

Saudi Arabia Construction Aggregates 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 2025-2033. Our report has categorized the market based on type and application.

Type Insights:

• Crushed Stone
• Sand and Gravels
• Recycled Aggregates
• Others

The report has provided a detailed breakup and analysis of the market based on the type. This includes crushed stone, sand and gravels, recycled aggregates, and others.

Application Insights:

• Commercial
• Residential
• Industrial
• Infrastructure

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes commercial, residential, industrial, and infrastructure.

Regional Insights:

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

The report has also provided a comprehensive analysis of all the major regional markets, which include 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 Construction Aggregates Market News:

• October 2024: Asas Al-Mohileb, a Saudi building materials firm, revealed plans to construct a concrete plant valued at USD 186 Million as part of the extensive Neom development initiative in the Tabuk Province of northwestern Saudi Arabia. The Line’s foundational and elevated structures would be constructed using concrete. The facility with multiple plants would include carbon capture and utilization technology.
• October 2024: City Cement, via its subsidiary Nizak Mining, collaborated with UK firm Next Generation SCM to establish the first production facility for calcined clay supplementary cementitious material (SCM) in Saudi Arabia. Set to start large-scale production in the third quarter of 2025, the Riyadh facility will manufacture 350,000 Tons of low-carbon concrete each year, with intentions to increase its output. The initiative supports Saudi Arabia's Vision 2030 and seeks to substantially decrease CO2 emissions tied to concrete manufacturing, representing a significant achievement for sustainable building materials.
• September 2024: Saudi Aramco inked a five-year partnership agreement with China National Building Material Group (CNBM) to investigate advancements in low-carbon construction materials and innovative construction techniques. The partnership involved establishing production facilities in Saudi Arabia for the creation of wind turbine blades, hydrogen storage tanks, and energy storage systems, aimed at minimizing emissions associated with construction activities. This collaboration demonstrated Saudi Arabia's increasing dedication to promoting sustainable construction aggregates and materials.

Saudi Arabia Construction Aggregates Market Report Coverage:

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 construction aggregates market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia construction aggregates 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 construction aggregates 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.