Market Size of Jeddah Construction Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 2.49 Billion |
Market Size (2029) | USD 3.5 Billion |
CAGR (2024 - 2029) | 5.83 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Jeddah Construction Market Analysis
The Jeddah Construction Market size is estimated at USD 2.49 billion in 2024, and is expected to reach USD 3.5 billion by 2029, growing at a CAGR of 5.83% during the forecast period (2024-2029).
• Jeddah is one of the major cities in Saudi Arabia and has experienced significant growth and development in recent years. The construction sector in Jeddah plays a crucial role in shaping the city's infrastructure and supporting its economic development.
• Jeddah is the largest city in Makkah Province, the largest city in Hejaz, the second largest city in Saudi Arabia, and the ninth largest city in the Middle East, with a population of about 3,751,722 as of 2022. On the Red Sea, Jeddah Islamic Port is the thirty-sixth largest seaport in the world and the second-largest and second-busiest seaport in the Middle East (after Dubai's Port of Jebel Ali).
• The strategic location of Jeddah as a port city makes it a hub for industrial activity. Investing in industrial real estate, such as factories or warehouses, can be profitable.
• First-class four-star properties account for 77 projects and 30,229 rooms - 46% of the total, with the remaining 54% in the five-star luxury segment, equating to 90 builds comprising 33,524 keys.
• The construction sector accounted for the most significant number of new contracts, with a total value of USD 34.3 billion in 2022. In particular, an increase in the number of contracts awarded in Saudi Arabia's construction sector has contributed to the growth of the construction sector.
• Several megaprojects are taking shape in Makkah, representing a significant part of the development boom. Jeddah has 33 projects with 7,148 rooms, and Al Wajh, which has 12 projects with 4,868 keys, is fourth on the list.
Jeddah Construction Industry Segmentation
The construction market includes upcoming, ongoing, and growing construction projects in different sectors. These include but are not limited to geotechnical (underground structures) and superstructures in residential, commercial, and industrial structures, as well as infrastructure construction (like roads, railways, and airports) and power generation and transmission-related infrastructure.
A complete background analysis of the Jeddah Construction Market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report.
The Jeddah Construction Market is segmented by sector (residential, commercial, industrial, infrastructure (transportation), and energy and utility construction). The report provides market size and forecasts for the Jeddah Construction Market regarding value (USD) for all the above-mentioned segments.
By Sector | |
Residential | |
Commercial | |
Industrial | |
Infrastructure (Transportation) | |
Energy and Utility construction |
Jeddah Construction Market Size Summary
The Jeddah construction market is poised for significant growth, driven by the city's strategic position as a major port and industrial hub in Saudi Arabia. As the second-largest city in the country and a key player in the Middle East, Jeddah is undergoing a transformative phase with numerous megaprojects and developments aligned with Saudi Arabia's Vision 2030. The construction sector is integral to this transformation, with substantial investments in infrastructure, residential, and commercial projects. The market is characterized by a competitive landscape with both local and international players, contributing to a dynamic environment for growth and innovation. The ongoing development of luxury accommodations, entertainment centers, and industrial facilities underscores Jeddah's role as a pivotal economic center in the region.
The market size of Jeddah's construction industry is expected to expand significantly over the forecast period, reflecting the city's ambitious development plans and strategic initiatives. Key projects, such as the Jeddah Central development and the expansion of the Jeddah Islamic Port, are set to enhance the city's infrastructure and boost its economic prospects. The construction sector's growth is further supported by the increasing number of contracts awarded, highlighting the robust demand for construction services. As Jeddah continues to evolve, the market presents lucrative opportunities for stakeholders, with a focus on sustainable and innovative construction practices to meet the city's future needs.
Jeddah Construction Market Size - Table of Contents
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1. MARKET DYNAMICS AND INSIGHTS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Green And Sustainable Buildings Initiatives
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1.3 Market Restraints
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1.3.1 Decliing Crude Oil Prices
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1.4 Market Opportunities
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1.4.1 Government Initiatives
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1.5 Value Chain / Supply Chain Analysis
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1.6 Impact of Government Regulations and Initiatives on the Industry
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1.7 Review and Commentary on the Extent of Government Infrastructure Development Schemes
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1.8 Porter's Five Force Analysis
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1.8.1 Threat of New Entrants
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1.8.2 Bargaining Power of Buyers/Consumers
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1.8.3 Bargaining Power of Suppliers
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1.8.4 Threat of Substitute Products
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1.8.5 Intensity of Competitive Rivalry
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1.9 Impact of covid-19 on the market
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2. MARKET SEGMENTATION
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2.1 By Sector
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2.1.1 Residential
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2.1.2 Commercial
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2.1.3 Industrial
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2.1.4 Infrastructure (Transportation)
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2.1.5 Energy and Utility construction
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Jeddah Construction Market Size FAQs
How big is the Jeddah Construction Market?
The Jeddah Construction Market size is expected to reach USD 2.49 billion in 2024 and grow at a CAGR of 5.83% to reach USD 3.5 billion by 2029.
What is the current Jeddah Construction Market size?
In 2024, the Jeddah Construction Market size is expected to reach USD 2.49 billion.