Currently, Saudi Arabia has prospects of becoming the largest construction market in the world because of a series of large-scalar investments targeted at the country’s infrastructure modernization. Therefore, Knight Frank estimate in its recent report reveals that construction output of the kingdom will reach $181. 5 billion which organized by WHO expects to reach $ 188 by 2028, it means the increase of 29. 4 billion expected to be reached by the year 2023. This rise is mainly attributed to the Vision 2030 plan aimed at reducing the Saudi Arabia’s dependence on oil as a frontline source of income.
The $500 billion futuristic city
As for the Vision 2030, it contains countless numerous initiatives as the aim of this plan is to spur economic diversification and develop sustainable economic growth for the Kingdom. Among the key initiates, there is NEOM which may cost $500 billion; it is to be a promising city of the future with the focus on the innovative technologies. NEOM is one of the huge projects that show the kingdom’s efforts to upgrade its infrastructure and global fundraising.
New data show that construction activity has remained fairly strong in the kingdom, new contracts for instance totaling to $140 billion in 2023 alone. These contracts are mostly oriented towards the construction of the capital, Riyadh, that is expected to stage mega-events in the near future, including the 2030 World Expo and the 2034 FIFA World Cup. These are expected to lay foundation to the kingdoms visibility on the international map as well as propel the existing construction trends.
Investments in Housing, Healthcare, and Transportation
Further, for its exploding population, the Saudi Arabian government is also spending massively in different fields like housing, healthcare, and transportation. For instance, the Saudi Housing Program working towards the cause of providing better housing solutions so that more Saudi citizen can own homes. The sector of healthcare is also experiencing high investment and many hospitals and medical center are being built to address the need of people for quality service providers in the healthcare industry.
Transportation system is another strategic sector identified with immense developments being carried out in the kingdom’s roads, rail, and air system. Such efforts are aimed at enhancing the internal and regional integration with a view to promoting export and tourism.
That is why the construction and development rate in Saudi is pretty high and it attracts numerous companies and investors from different countries to get engaged in the construction of the kingdom. To this effect, a rapid increase of global talent and foreign investment is likely to enhance the construction of modern facilities for infrastructure and advance the economic development.
Therefore, it can be concluded that Saudi Arabia’s long-term investments and large-scale development plans make the Kingdom ready for becoming one of the biggest construction markets in the world. It is through Vision 2030 that such a transformation is being championed, and the subsequent calidad de vida sought through a series of phenomenal infrastructure development projects. While these plans are being implemented, Saudi Arabia stands a good chance to become one of the leading construction and development country thereby fostering for its diversified economy.
