After experiencing two consecutive years of high growth in 2019 and 2020, the Chinese construction machinery industry saw a significant decline in 2021 and 2022, leading to the loss of its title as the country with the largest market share in the global construction machinery market in 2022. It now ranks only third in the global construction machinery market share country rankings.
A report from real estate consultancy group Knight Frank indicates that Saudi Arabia could become the world’s largest construction market as the country has invested significant funds into projects aimed at reforming and diversifying its economy.
The British-based company, in its “2024 Mid-Year Assessment of the Construction Industry,” predicts that by the end of 2028, the total construction output in Saudi Arabia will reach $181.5 billion.
If this figure is achieved, it would represent a nearly 30% increase from the industry output of $141.5 billion in 2023.
This growth is attributed to the aspirations of implementing the “Vision 2030” plan, which aims to transform the country’s economy and reduce dependence on oil revenues.
Saudi Arabia is home to some of the world’s largest construction projects, such as NEOM. However, some of these projects have recently been scaled back.
Mohamed Nabil, Partner and Head of Projects and Development Services for Knight Frank in the Middle East and North Africa region, stated, “We are currently witnessing a historic transformation taking place in Saudi Arabia, with construction projects standing out in terms of scale and value.”
According to Knight Frank’s research, Saudi Arabia has initiated projects worth over $1.25 trillion since the introduction of the “Vision 2030” plan eight years ago.
In 2023 alone, over $140 billion worth of construction contracts were awarded. Most of these contracts were in Riyadh, where Saudi Arabia aims to increase the city’s population to 10 million by 2030.
With Saudi Arabia preparing to host the 2030 World Expo and the 2034 FIFA World Cup, the capital has become a major focal point.