GCC Construction Market Size (2024 - 2029)

GCC Construction Market Size Summary

The GCC construction industry is poised for significant growth over the forecast period, driven by substantial investments in infrastructure across member countries. Despite facing challenges such as the global pandemic, inflation, and geopolitical tensions, the market has shown resilience, with Saudi Arabia emerging as a key player. The region's economic growth, moderate inflation, and fiscal surpluses have encouraged governments to invest heavily in infrastructure to diversify and expand their economies. However, the effectiveness of these investments is contingent upon robust public investment management practices, which are currently hindered by inefficiencies such as non-standardized evaluation processes and limited inter-agency coordination. These challenges present opportunities for improvement, as the GCC seeks to enhance the quality of its infrastructure to match the high level of capital stock per capita.

The construction sector within the GCC is characterized by a fragmented market with numerous players, offering ample growth opportunities. Technological advancements, particularly in proptech solutions, are facilitating increased transactions and improved management of real estate assets. Major construction firms such as Nesma & Partners Contracting, Albawani Group, ALEC Engineering and Contracting, Arabian Construction Company, and ASGC Construction are actively contributing to the market's expansion. Recent projects, such as ALEC's contract for the Wynn Resort and ASGC's completion of Grand Creek Harbour, highlight the sector's dynamic nature and commitment to sustainability. Despite fluctuations in contract awards across the region, the construction industry remains a critical component of the GCC's economic strategy, with Saudi Arabia leading the charge in project value.