Saudi Arabia Commercial Construction Market: Mega Projects, Urban Development & Growth Outlook

According to IMARC Group's latest research publication, Saudi Arabia commercial construction market size reached USD 37,031.21 Million in 2025. The market is projected to reach USD 73,357.10 Million by 2034, exhibiting a growth rate of 7.89% during 2026-2034.

How Vision 2030 is Transforming Saudi Arabia's Commercial Construction Landscape

Vision 2030 is fundamentally reshaping Saudi Arabia's commercial construction sector through an unprecedented wave of giga-projects and economic diversification initiatives. The Kingdom has committed roughly USD 1.3 trillion toward infrastructure expansion, with mega-developments like NEOM, The Red Sea Project, and Qiddiya creating massive demand for commercial real estate across office, retail, hospitality, and mixed-use segments. Contract awards reached SAR 118.8 billion in the first quarter alone, representing a 79 percent year-over-year surge that signals sustained momentum in the sector.

The Regional Headquarters Program exemplifies Vision 2030's commercial real estate impact. With 30-year corporate tax exemptions and streamlined business procedures, the initiative has attracted 675 multinational companies to establish MENA headquarters in Riyadh by March 2025—each requiring at least 15 senior employees and regional decision-making authority. Major firms including Amazon, Microsoft, EY, and Bain & Company have opened substantial facilities, with EY's new 11,691-square-meter MENA headquarters in King Abdullah Financial District setting new standards for Grade A office space.

Request a Sample Report with the Latest Data & Forecasts

Saudi Arabia Commercial Construction Market Trends & Drivers:

Retail and Entertainment Real Estate Boom Driven by Tourism Expansion

Saudi Arabia's retail and entertainment construction is surging alongside the Kingdom's tourism transformation. With plans to add 362,000 hotel rooms by 2030 through a USD 110 billion hospitality investment program, the sector is experiencing explosive growth—licensed hospitality facilities jumped 99 percent to 3,950 properties in 2024, while hotel rooms surged 107 percent to 443,200 units. The retail pipeline is equally robust, with 800,000 square meters of new retail space expected by 2027, led by flagship projects like Westfield Riyadh and Avenues Mall.

Public-Private Partnership Framework Accelerating Mixed-Use Development

The Kingdom's strengthened PPP framework is catalyzing commercial construction through risk-sharing arrangements that attract private capital and expertise. Nearly 200 PPP opportunities across 17 sectors have been announced, with standardized guidelines and improved investor protections released by the National Center for Privatization & PPP throughout 2023-2024. In June 2025, major mixed-use PPP projects were launched in Makkah and Dammam, including a 219,416-square-meter healthcare-commercial complex in Makkah featuring hospitals and a regional shopping mall under a 30-year Build-Own-Operate-Transfer concession.

Market Trends:

Growing Demand for Premium Office Spaces with Sustainability Features

Grade A office space commanding premium rents is experiencing unprecedented demand as multinational corporations establish regional operations. Riyadh now captures 51.1 percent of national office demand, with Grade A properties holding 47.9 percent market share and rental rates climbing 23 percent year-over-year. Sustainability credentials are becoming competitive differentiators—King Abdullah Financial District's 94 towers earned LEED Platinum certification, while Forbes International Tower achieved the world's first Zero Carbon Certification through its hydrogen-solar energy system. Corporate ESG mandates are driving landlords to retrofit buildings with IoT management systems, renewable power integration, and enhanced wellness amenities. Real estate credit expanded 40.5 percent year-over-year, reaching USD 827.2 billion in March 2025, reflecting strong institutional appetite for quality assets. The shift toward smart, sustainable office environments isn't just environmental—it's becoming essential for attracting and retaining multinational tenants who view building quality and technology integration as operational imperatives in an increasingly competitive talent market.

Rise of Mixed-Use Developments Integrating Commercial and Lifestyle Functions

Commercial construction is increasingly embracing integrated mixed-use formats that combine office, retail, hospitality, and residential components within cohesive urban environments. Projects like King Salman Park, Diriyah Gate, and Jeddah Central blend commercial spaces with cultural facilities, entertainment venues, and green corridors, creating destinations rather than standalone buildings. ROSHN's November 2024 rebranding and expansion added four million square meters of commercial, office, and hospitality space to its development pipeline, reflecting this sector-wide shift. These integrated communities offer businesses and consumers greater convenience and interaction opportunities while maximizing land-use efficiency in high-value urban locations.

Saudi Arabia Commercial Construction Market Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2026-2034. Our report has categorized the market based on end user.

End User Insights:

• Office Building Construction Retail Construction Hospitality Construction Institutional Construction Others

The report has provided a detailed breakup and analysis of the market based on the end user. This includes office building construction, retail construction, hospitality construction, institutional construction, and others.

Regional Insights:

• Northern and Central Region Western Region Eastern Region Southern Region

A detailed breakup and analysis of the market based on the region have also been provided in the report. This includes Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Recent News and Developments in Saudi Arabia Commercial Construction Market

• July 2025: AECOM, a leading name in global infrastructure, unveiled a strategic collaboration with the Special Integrated Logistics Zones Company (SILZ), Saudi Arabia's foremost developer and operator of logistics hubs. The alliance aims to advance the Kingdom's position as a worldwide leader in integrated logistics, supporting the objectives of Saudi Vision 2030. Through this partnership, both organizations seek to drive economic diversification, promote sustainable growth, and strengthen Saudi Arabia's role in international trade and supply chain connectivity.
• July 2025: Diriyah Company awarded a USD 600 million construction contract for 400 retail units in Diriyah Square, marking a significant milestone in one of Saudi Arabia's most ambitious heritage and tourism destinations. This award brings the company's total contract awards past SAR 100 billion since inception, demonstrating sustained momentum in transforming the historic site into a world-class cultural and commercial hub.
• June 2025: The Nemetschek Group entered a Memorandum of Understanding (MoU) with Nesma Infrastructure & Technology (NIT), a prominent Saudi Arabian firm specializing in infrastructure and technology. This collaboration is intended to fast-track the digital transformation of Saudi Arabia's construction and infrastructure industries, supporting the goals outlined in the Kingdom's Vision 2030.
• June 2025: Major public-private partnership opportunities were announced in Makkah and Dammam, including a 219,416-square-meter mixed-use development in Makkah featuring a 200-bed long-term care hospital, 100-bed multi-specialty hospital, and regional shopping mall under a 30-year Build-Own-Operate-Transfer concession, demonstrating the Kingdom's commitment to private sector participation in commercial infrastructure.
• May 2025: DLR Group announced its plans to expand into Saudi Arabia in response to market potential and its long-term vision of becoming a leading force in defining the regional architectural identity. The move reflects the unprecedented ambition in urban development represented by giga-projects like NEOM, The Line, and Diriyah Gate.
• April 2025: International strategy consulting firm Bain & Company doubled its presence in the Saudi market by launching a new and significantly larger regional headquarters in Riyadh's King Abdullah Financial District. The new office is over twice the size of its former location, solidifying the firm's decade-long commitment to the Kingdom and reflecting strong demand for professional services tied to Vision 2030 transformation projects.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.