[Hyderabad, June 23, 2025] – According to a new report by Mordor Intelligence, the Riyadh Construction Market is poised for steady growth over the next five years, with the market size projected to grow from USD 15.46 billion in 2025 to USD 19.88 billion by 2030, recording a CAGR of 5.16% during the forecast period (2025–2030). The Riyadh Construction industry is being shaped by the Saudi government’s push for economic diversification and urban transformation under the ambitious Vision 2030 plan.

Growing Investment in Urban Development and Infrastructure

Riyadh’s construction sector is undergoing rapid expansion, supported by a wide range of government-led and private sector initiatives. The capital city is a focal point for mega projects that aim to enhance infrastructure, increase housing availability, expand commercial spaces, and introduce sustainable urban design. Major investments in transportation, such as the Riyadh Metro, and flagship developments like King Salman Park, New Murabba, and the Sports Boulevard are transforming the city’s urban landscape and generating strong demand for construction services.

Key Market Trends Driving Growth

One of the major trends driving the Riyadh construction market is the strategic alignment of infrastructure growth with Vision 2030 objectives. The city is witnessing a surge in mixed-use developments, smart city initiatives, and green urban planning, making sustainability a core component of construction planning. Smart mobility, environmental efficiency, and public green spaces are gaining momentum across new residential and commercial zones.

Increased private sector participation and public-private partnerships (PPPs) are also playing a key role. The government is leveraging the Public Investment Fund (PIF) and other state-backed financing mechanisms to attract international investors and contractors, which is helping accelerate project timelines and diversify the range of developments across the city.

Market Segmentation Overview

The Riyadh construction market can be segmented into key categories based on the type of construction and project scope:

Residential Construction: Driven by population growth and housing demand, especially affordable and mid-income segments. Projects are being launched to bridge the housing supply gap and align with Saudi Arabia’s home ownership goals.

Commercial Construction: Includes office spaces, retail centers, and hospitality developments. Demand is strong in areas adjacent to major infrastructure projects like metro stations and entertainment districts.

Infrastructure Construction: Encompasses roads, bridges, transport terminals, and public spaces. The Riyadh Metro and major public realm projects have become central to this segment’s growth.

Industrial Construction: Includes logistics hubs and warehousing facilities, often aligned with the broader goal of diversifying the non-oil economy and improving supply chain capabilities.

Strategic Projects Shaping the Market

The city’s transformation is being led by a host of landmark projects:

New Murabba: A futuristic downtown district set to house the “Mukaab” skyscraper and a combination of residential, commercial, and cultural spaces.

King Salman Park: One of the world’s largest urban parks, blending green zones with sports, arts, and entertainment facilities.

Riyadh Metro: A 176-kilometer fully automated metro system, enhancing urban mobility and unlocking value in surrounding real estate.

These projects reflect a shift toward integrated urban planning, focusing on livability, tourism, and economic stimulation, while supporting the creation of thousands of construction and engineering jobs.

Opportunities and Market Outlook

With sustained support from national programs and rising domestic and international investments, Riyadh’s construction sector offers robust opportunities for developers, architects, engineers, suppliers, and technology providers. The rising adoption of Building Information Modelling (BIM), modular construction, and energy-efficient building solutions is improving productivity and cost control across projects.

The emphasis on green building standards, smart infrastructure, and digitally connected urban areas will continue to shape the market’s long-term trajectory. Furthermore, the Saudi government’s commitment to sustainable growth, paired with large-scale urbanization, ensures a healthy project pipeline through 2030.

Conclusion

The Riyadh Construction Market is entering a phase of strategic transformation and sustainable growth, underpinned by Vision 2030 and major infrastructure investments. With the market forecast to approach USD 20 billion by 2030, the city remains a key destination for construction-related investments and innovation in the Middle East. Companies operating in the construction, engineering, and urban planning sectors will find Riyadh a vital growth hub over the coming decade.

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