Saudi Arabia’s construction sector is experiencing a significant surge. The Kingdom awarded a staggering 314 public projects in 2024. These projects total approximately 267.8 billion Saudi riyals ($71.5 billion USD). This marks the highest annual project value since the 2020 Covid-19 pandemic. The Saudi Contractors Authority (SCA) released these impressive figures. The SCA represents a majority of construction firms within the Gulf Kingdom.
April witnessed the highest project value, reaching SAR57.4 billion ($15.3 billion). January followed with projects worth SAR36.8 billion ($9.8 billion). In December, the government awarded 11 projects totaling about SAR10.5 billion ($2.8 billion). One project from December will complete in 2025, two in 2026, six in 2027, and two in 2030.
Significant Projects and Investments
The largest project in December, valued at SAR5.5 billion ($1.46 billion), was awarded by the Saudi Power Procurement Company (SPPC). Additionally, Saudi Aramco signed contracts exceeding $25 billion to expand its Jafurah gas field and main gas network. The Jafurah field, the kingdom’s largest unconventional non-associated gas field, holds 229 trillion cubic feet of gas and 75 billion barrels of condensates. By 2030, it aims to produce 2 billion standard cubic feet per day of sales gas, reinforcing Saudi Arabia’s position as a leading global gas producer.
Renewable Energy Initiatives
Saudi Arabia is also making significant strides in renewable energy. French companies EDF and TotalEnergies were awarded substantial solar power projects in the kingdom. EDF Renewables will construct two solar parks totaling 1.4 GW in partnership with China’s State Power Investment Corporation. TotalEnergies will build a 0.3 GW solar park in Rabigh Industrial City with local Saudi developer Aljomaih Energy and Water Company. These projects align with Saudi Arabia’s ambitious plan to achieve 130 GW of renewable energy capacity by 2030.
Economic Diversification and Vision 2030
The surge in project awards reflects Saudi Arabia’s commitment to economic diversification under Vision 2030. The kingdom is investing heavily in new industries and infrastructure to reduce its reliance on oil revenues. Projects like the $65 billion Diriyah Gate, led by the Public Investment Fund (PIF), exemplify this strategy. Despite recent declines in oil prices, Saudi Arabia continues to pursue key developments and hosting events, maintaining its transformative plans despite tightened economic measures and global challenges.
Saudi Arabia’s substantial project awards in 2024 underscore its dedication to economic diversification and development. The kingdom is investing across various sectors, including traditional industries and renewable energy, to secure a sustainable and prosperous future.
