Market snapshot of the outlook for Saudi projects

23 March 2023
Comprising more than 50 per cent of the total GCC market, the kingdom is the number one target market for GCC companies today, as evidenced by contractors from Qatar and the UAE securing work in Saudi Arabia

Key points: 

> 2022 REVIEW: Saudi Arabia’s projects market maintained its momentum in 2022 with the award of $55bn-worth of projects. This was 2.3 per cent more than in 2021 and 52 per cent higher than the annual average over the preceding five years. 

> 2023 OUTLOOK: Most future projects are in the design stage, either at conceptual or more detail level. In terms of projects out to bid, construction is the largest segment, and is expected to dominate over the long term.

> TRENDING PROJECTS: Key projects include New Murabba, planned to be the world’s largest downtown development spanning 19 sq km; King Salman International airport, which will cover 57 sq km and accommodate 185 million passengers a year with six parallel runways by 2050; the Trojena lake, enchanted forest and time travel tunnel; and the kingdom's hydrogen and carbon capture and storage programme.

> PROJECT MARKET DRIVERS: Key drivers for project investment include the kingdom's high population; the energy transition into the hydrogen economy; net zero, renewables and carbon capture; Vision 2030 and the gigaprojects programme; and ESG and the focus on sustainable construction and construction technology.

MEED's April 2023 special report on Saudi Arabia includes:

> ECONOMY: Riyadh steps up the Vision 2030 tempo
> CONSTRUCTION: Saudi construction project ramp-up accelerates
> UPSTREAM: Aramco slated to escalate upstream spending
> DOWNSTREAM: Petchems ambitions define Saudi downstream
> POWER: Saudi Arabia reinvigorates power sector
> WATER: Saudi water begins next growth phase
> BANKING: Saudi banks bid to keep ahead of the pack

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