RICS : Saudi Arabia Ranked 1st Globally in Construction

The RICS Construction Activity Index has announced that Saudi Arabia ranked first globally in construction sector.

Achieving a record +86 net balance, this marks the highest positive result since RICS began its assessments in Saudi Arabia in the third quarter of 2018.

Advancements in Residential, Non-Residential Sectors

Alongside infrastructure, both private residential and private non-residential construction sectors have shown notable progress, contributing significantly to the overall growth of the industry.

Industry Challenges

Despite the progress, the Saudi construction sector faces global challenges such as skills shortages and the rising cost of materials. These factors pose hurdles to the ongoing growth of the sector.

Positive Future Projections

Looking ahead, the industry’s outlook remains positive. Strong workload expectations, particularly in infrastructure, suggest that the sector will continue to lead on a global scale.

Projected Market Growth

Between 2019 and 2024, the Saudi construction market is anticipated to grow at a compound annual growth rate (CAGR) of 6%. This growth is integral to the Kingdom’s strategy to diversify its economy beyond oil.

Diverse Sectoral Investments

Saudi Arabia is investing in a multitude of projects across sectors like real estate, tourism, entertainment, and infrastructure. These initiatives are crucial in bolstering the overall construction industry.

Summary of RICS’s Findings

The findings by RICS highlight Saudi Arabia’s dominant role in the global construction industry. Driven by robust infrastructure and residential projects, the country’s construction sector stands strong despite the common challenges it faces in the industry.

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