The economic output of Saudi Arabia's construction industry is expected to grow by 4.4% in 2025, with the energy and utilities sector leading the charge, projected to grow by 5.6% in real terms, according to a recently published report by GlobalData.

The growth in energy and utilities is closely followed by infrastructure construction, which is expected to increase by 5.2%, driven by substantial investments in airports, railways and road projects.

Overall growth is expected to be fuelled by strategic investments across various sectors, including housing and transport infrastructure, and preparations for leading global events including football’s Fifa World Cup 2034 and Expo 2030.

Other sector-specific forecasts indicate that commercial construction will grow by 3.7% in 2025, while industrial construction is expected to see a 3.9% increase. The residential sector is also poised for growth, projected to rise by 3.8%, addressing the national housing deficit.

In November 2024, the Saudi government approved a robust 2025 budget of SR1.3tn ($342.7bn), aimed at stimulating the construction sector. Recent data from the Investment Ministry has revealed that 3,800 construction licences were issued in 2024, indicating a strong upward trend in industry activity.

Looking ahead, the construction sector is projected to maintain an annual average growth rate of 5.4% in 2026-29, bolstered by government initiatives to enhance the tourism sector and investments in diverse infrastructure projects.

In January 2025, the government unveiled a long-term strategy to revitalise the entertainment industry, featuring 29 investment opportunities across six sectors. This initiative is expected to generate over SR120bn ($32bn) and create 100,000 jobs by 2030.