Riyadh Construction Market Set to Reach USD 19.88 Billion by 2030 – Driven by Vision 2030 and Urban Expansion

 Introduction 

The Riyadh Construction Market is projected to reach USD 15.46 billion in 2025 and grow to USD 19.88 billion by 2030, registering a CAGR of 5.16% during the forecast period (2025–2030). This growth reflects the city's dynamic and expanding construction sector, driven by large-scale infrastructure upgrades, extensive commercial and residential developments, and strategic investment in smart city initiatives. Riyadh’s focus on sustainable urban development and modernization is creating strong demand across various construction segments. These developments present attractive opportunities for construction firms, investors, and industry stakeholders looking to be part of the city’s long-term transformation. 

The Riyadh construction market is focused on stimulating economic growth, promoting sustainable development, and enhancing the overall quality of life for its residents. 

 

Key Market Drivers 

  1. Vision 2030 & Giga-Infrastructure 
     Massive projects like NEOM, Qiddiya, the Riyadh Metro, King Salman Park, New Murabba, Sports Boulevard, and the iconic Mukaab (part of New Murabba) are profoundly reshaping Riyadh’s landscape. 


  1. Urbanization & Sustainability 
     Urban expansion, green building integration, and digital construction (e.g., BIM and AI in infrastructure) are accelerating the adoption of smarter, eco-friendly methods. 


  1. Housing Demand & Affordability Gap 
     A surge in residential development aims to meet demand in the capital. Yet, affordability remains a concern prices rose ~81% since 2020 for houses and ~56% for apartments, outpacing income growth. Government-led affordable housing programs are in response


  1. Transportation Boost 
     The Riyadh Metro (176 km driverless network operational since December 2024) is unlocking new transit-linked development zones 

 

Market Segmentation 

  • Commercial construction: Valued at around USD 72.1 bn in 2024 and projected to grow at a CAGR of 5.2% through 2030.

  •  

  • Heavy construction: Roughly USD 35 bn in 2024 with a 7.4% CAGR through 2030, spurred by infrastructure and development projects. 


  • Infrastructure & mobility: Metro, roads, bridges, parks, and transit corridors form the backbone of Riyadh’s transformation (e.g., Sports Boulevard and Metro connectivity). 

 

Trends & Challenges 

1. Smart & Sustainable Building 

  • Adoption of BIM, modular construction, and AI-based traffic optimization is on the rise. 

  • Green urban landscapes from King Salman Park to Sports Boulevard are reshaping Riyadh’s carbon footprint. 

2. Public–Private Partnerships (PPP) 

  • Mega-projects heavily rely on PPP models and financing through the Public Investment Fund (PIF), enabling diversified stakeholder participation  

3. Affordability Pressures 

  • Skyrocketing residential prices in Riyadh outpaced incomes pricing many Saudis out. Government efforts target this via subsidized housing and bank loans 

4. Economic Recalibration 

  • Fiscal discipline is growing amid fluctuating oil revenues though flagship projects like Diriyah Gate and the Metro stay funded, some auxiliary schemes are being slowed or phased. 

 

Opportunities & Outlook 

  • Residential & affordable housing: Sub-sector with high demand but needs innovation in cost-effective delivery.


  • Infrastructure engineering: Demand for transport-linked real estate, energy-efficient construction, and smart utility networks. 


  • Tech adoption: BIM, AI, modular systems, and digital twins to reduce costs and timelines.

  •  

  • Green construction: Sustainable materials, environmental certification, and public green space integration are key growth drivers.

  •  

  • International partnerships: Global engineering firms, contractors, and investors have strong opportunities through PIF-backed PPPs. 


Conclusion 

Riyadh’s construction industry is in a transformative growth phase, propelled by Saudi Vision 2030, mega-projects, digital-tech integration, and sustainability priorities. With the market set to reach nearly USD 20B by 2030 at a solid CAGR, the city is evolving balancing groundbreaking development with affordability and sustainable practices. 

For stakeholders, developers, engineers, investors, policymakers Riyadh offers: 

  • Residential: High demand yet cautious affordability. 

  • Infrastructure: Metro-linked development, mobility improvement. 

  • Technology & sustainability: Digital tools and green solutions as competitive edge. 

  • Collaborative models: PPPs and global partnerships. 

 

For a detailed overview and more insights, you can refer to the full market research report by Mordor Intelligence: https://www.mordorintelligence.com/industry-reports/riyadh-construction-market?utm_source=blogger 

 

About Mordor Intelligence:  

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals. 

With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics. 

For any inquiries or to access the full report, please contact: 

media@mordorintelligence.com  
https://www.mordorintelligence.com/ 

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