Saudi Construction Industry Contributes 6% to GDP, Confirms Official

The construction sector in Saudi Arabia is a significant contributor to the country’s gross domestic product, accounting for 6 percent of it, with a value of over SR255 billion ($68 billion). According to Zakria Al-Abdulqadir, the chairman of Saudi Contractors Authority, the construction sector is the second-largest non-oil sector in the country. The Future Projects Forum, organized by the SCA, showcased 3,000 projects worth around $270 billion. The SCA is also the current chair of the Federation of Contractors from Islamic Countries, representing the construction sector of 26 Islamic countries. The US-Saudi Business Council recently reported that contract values in the Kingdom’s construction sector reached SR71.5 million during the fourth quarter of 2022, accounting for 37 percent of the total contracts awarded last year. The report also stated that the overall deals struck between October and December were the highest since the first quarter of 2015 when contract values touched SR88.1 billion. Albara’a Alwazir, director of economic research at the USSBC, attributed this surge in contract awards to a growing economy fueled by significant oil revenues and the acceleration of giga-projects following the COVID-19 slowdown.