Middle East Construction Market By Type (Building Construction, Heavy & Civil Engineering Construction, and Others), By End User (Private, Public), By Sector (Commercial, Residential, Industrial, and Infrastructure), By Construction Type (New Construction, Repair & Maintenance) By Country, Competition, Forecast, and Opportunities 2028
Published Date: November - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Infrastructure | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationMiddle East Construction Market By Type (Building Construction, Heavy & Civil Engineering Construction, and Others), By End User (Private, Public), By Sector (Commercial, Residential, Industrial, and Infrastructure), By Construction Type (New Construction, Repair & Maintenance) By Country, Competition, Forecast, and Opportunities 2028
| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 86.7 Billion |
| Largest Market | Building Construction |
| CAGR (2023-2028) | 5.29% |
| Fastest Growing Segment | Repair & Maintenance |
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The Middle East Construction Market has valued at USD 86.7 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 5.29% through 2028.
Involvement of Foreign Investors Propelling the market Growth
The Governments in the Middle East are investing heavily on infrastructure projects, such as roads, railways, airports, power plants, etc. to improve the region's connectivity and economic competitiveness.
Adoption Of Green Building Technology
Construction industry market players are heavily using green building technology to construct energy efficient buildings and reduce overall construction costs. Green building means usage practice sustainable building materials. Durable building materials such as natural colors and steel beams recycled material are widely used in middle east region. However, other green building techniques such as cross aeration to improve the natural environment and reduce carbon emission, green building software such as Construction Suite green compliance and the management of Green Globes (MGG) are used in the middle east construction market.
In addition, Aero Gel insulation strips are progressively used by construction firms since Aero Gel offers better energy performance effectiveness and moisture control management (MCM). Aero Gel insulation is a frozen smoke and translucent based structure for construction, and aerogel is made for removing the liquid content of the gel (liquid), and it is leaving only the silica structure, which is 99% air based. Aerogel controls its shape and is created in the form of an Aero-Gel fabric sheet or cover is weightless, recyclable, reusable and user friendly. Building products created on Aero Gel, for instance Aero Gel fabric panels, are used to save energy costs, reduce the loss of conditioned indoor air, remove pollutants from the air and improve heat durability in buildings. Owing to this latest trend of using Aero Gel in the construction sector, the middle east construction market is projected to grow with a high CAGR in the forecast period.
Technological Advancement in the Construction Market
The latest Technological advancement is gaining traction, due to which the Middle East Construction Market is expanding. Some of the major examples of technologies are virtual reality (VR) and augmented reality (AR) are gaining popularity in the construction industry accelerate construction and they are helping in reduction of construction-related overall cost. The VR (Virtual reality) is computer inspired the world that replaces the real world and are AR (augmented reality) is a world augmented by computer-generated reality bodily inputs that together enable the interactive creation of a three-dimensional 3D building design model in an accurate way. These technologies help the construction industry by reducing rework, improving quality, decrease labor costs, adhere to the schedule, improve safety and customer experience, improve collaboration, design analysis, measurement accuracy, construction project management and plan submission.
Artificial Intelligence & Robotics are highly popular now a days, in construction industry to alter workforce, for capturing accurate data and analyzing information, eliminate human error and inconsistency AI & Robotics used. Artificial intelligence (AI) uses computers to model the natural intelligence of humans in computer-controlled robots and machine learning to solve problems and perform tasks. These artificially intelligent robots assist in construction work, quality control, progress monitoring, real-time monitoring of heavy equipment, proactively alert the user to system failures or malfunctions, and increase safety. For instance, in 2022, ABB signed an agreement for a wide range of robotics solutions for Scania's new highly automated battery assembly plant in Sweden. The latest facility can be a significant milestone in Scania's journey towards the electrification of heavy trucks. Scania will invest more than SEK 1 billion (USD 108 million) in the facility over several years, and the new Sodertalje plant is expected to be fully operational by 2023.
Saudi Arabian Government on Vision 2030 Fueling the Market Growth
Now a days, increasing focus of Saudi Arabian government on constructing its net spending for launching of Vision 2030 is expected to notably boost the country’s economy and construction sector in the coming years. For this vision, the government has aimed some major goals, such as, to expand the assets of the public like USD 1,865.40 billion in 2030 and to raise the proportion of exports based on non-oil sources from 16% in 2016 to 50% in the year 2030. The Saudi Arabia construction sector’s immediate outlook looks promising, and the annual average growth rate is expected grow during forecast period. As Government of Saudi Arabia is focusing on Vision 2030, the construction sector in the nation is gaining traction, owing to which the market is growing in the forecast period.
Additionally, in the year 2024-2032, the KSA (Kingdom of Saudi Arabia) planned for spending USD 300 billion, and it is under construction. However, nation’s government is dealing with several difficulties/problems, particularly in controlling the country's financial loans, diversifying its sources of income, and reducing its dependence on oil, which is why Saudi Arabia is now focused on their expertise in tourism sector, owing to which they need to build more buildings, due to which the middle east construction economy is growing.
As the government works on reducing oil dependency, which is a significant contribution to the nation's GDP, non-oil-based industries have seen an increase in their earnings. Moreover, in 2022, Saudi Arabia authorities are making considerable spending in healthcare sector, as it aims to finish major 2 medical cities project plan. Wholesale, retail, shops, malls, hotels, and restaurants account for the second largest share in non-oil sector spending. Furthermore, infrastructure and transport accounted for around 6.30% of KSA's budget, and the country is currently raising its development expenditure. The nation is observing a rise in the manufacturing sector. Due to this development in the Saudi Arabia location, all of it is going to impact the overall market growth of middle east region.
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Recent Development
- In November 2024-2032, ASSENT declared a new contract with global engineering business JGC Corporation. ASSENT transfers/deliver 3,500 tons of fabricated steel to the Basrah refinery upgrade project in Iraq.
- In June 2024-2032, Red Sea International Corporation, in Saudi Arabia signed SAR 52.93 million (USD 14.09 million) contract with AlUla's Royal Commission (RCU), and they constructed a key residential complex in AlUla. The contract covers the design, construction, supply, and installation of 150 modular, high-quality, fully furnished buildings or apartments that will serve as one of RCU's strategic housing projects in AlUla.
- In 2024-2032, Infrastructure saw strong project awards across the Middle east region, with Egypt contributing USD 6.9 billion, Saudi Arabia contributing approximately USD 3 billion and the United Arab Emirates USD 973 million. In the construction project rewards, the residential sector was consistently the most effective market in Egypt, Saudi Arabia, and United Arab Emirates.
- Saudi Electricity Corporation. (SEC) has rewarded by the smart metering project at a cost of Saudi Riyal 9.55bn (USD 2.55 Billion). The project started on December 19, 2024-2032, and involves installing and commissioning 10 million smart meters for consumers across Saudi Arabia. The consortium of Etihad Etisalat Corporation & Al-Fanar Construction would likely to implement the project in central and eastern areas of Saudi Arabia. The project is anticipated to be completed by the end of 2030.
Market Segmentation
The
Market Players
Major players in the Middle East construction market
|
Attribute |
Details |
|
Base Year |
2022 |
|
Historic Data |
2018 – 2022 |
|
Estimated Year |
2023 |
|
Forecast Period |
2024 – 2028 |
|
Quantitative Units |
Revenue in USD Million, and CAGR for 2018-2022 and 2024-2028. |
|
Report coverage |
Revenue forecast, company share, growth factors, and trends |
|
Segments covered |
Type End User Sector Construction Type Country |
|
Regional scope |
Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, Iran, Israel, and Rest of Middle East |
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Key companies profiled |
Orascom Construction Plc, Nesma & Partners Contracting Co. Ltd, Al Bawani Company, ALEC Engineering and Contracting (ALEC), Arabian Construction Company (ACC), ASGC Group, Arab Contractors (AC), Al Naboodah Construction Group, Almabani General Contractors, Airolink Building Contracting LLC |
|
Customization scope |
10% free report customization with purchase. Addition or alteration to country, regional & segment scope. |
|
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. |
|
Delivery Format |
PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
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