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It grew 4.2% in 2024, sports events and tourism to sustain momentum Mega projects and high government capital expenditure will maintain the momentum in Saudi Arabia’s construction sector for years, according to a local think-tank. The Construction sector, which accounts for nearly 10 percent of non-oil GDP, saw another solid rate of growth in the year to the third quarter of 2024, up by 4.2 percent, compared with 4.3 percent in the full year 2023, Jadwa Investments Company said in a report. “This reflects ongoing momentum in the sector, despite a slower performance in the first half,” it said in the report seen by Zawya Projects. “A significant portion of growth is driven by spending on giga projects, tourism-related accommodations, and housing projects from both the private and public sectors.” For the years ahead, the PIF’s giga-projects will support construction activity, including Neom, Red Sea, Roshn, Qiddiya and Diriyah, Jadwa said. It said the sector would also continue to benefit from high levels of capital expenditure by the government through the annual budgets. “The diverse array of sports and entertainment events throughout the Kingdom is also expected to boost the construction sector, particularly through the development of numerous hotels and stadiums,” the report said. It noted that the Tourism Ministry is targeting an increase in visitors from 119.6 million in 2024 to 127 million in 2025, with planned spending of 346.6 billion Saudi riyals ($93 billion). “This is part of the broader strategy to meet Vision 2030’s target of 150 million visitors by 2030... Additionally, in preparation for hosting the World Cup in 2034, and before that the AFC Asian Cup in 2027, hotel room capacity will need to expand.” |
