Middle East Construction Market, Competition, Forecast & Opportunities, 2028

The Middle East construction market is anticipated to grow at a steady pace in the forecast period, 2024-2028. As the major mega events are growing rapidly, for instance, Dubai’s Expo, 2020 in the UAE and FIFA World Cup, 2022 in Qatar, owing to these events the market is gaining traction. Furthermore, Ongoing Vision 2030 model, and growing investments development on Mecca, Medina infrastructure in the pilgrim city are also growing, with huge spending on the expansion of Great Mosque of Mecca. Also, net spending is increased in the field of education as construction of schools and colleges activities are growing and attracted a deal close to USD 8 billion.

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 2019, 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.

Market Segmentation

The Middle East construction market the market is divided based on type, end user, sector, construction type, and country. Based on type, the market is segmented into building construction, heavy & civil engineering construction, and others. Based on end user, the market is segmented into private and public. Based on sector, the market is segmented into commercial, residential, industrial, and infrastructure. Based on construction type, the market is segmented into new construction, repair & maintenance. Based on country, the market is segmented into Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, Iran, Israel, and Rest of Middle East.

Market Players

Major players in the Middle East construction market are 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, and Almabani General Contractors, Airolink Building Contracting LLC.

Report Scope:

In this report, the Middle East construction market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

Middle East Construction Market, By Type:

• Building Construction
• Heavy & Civil Engineering Construction
• Others

Middle East Construction Market, By End User:

• Private
• Public

Middle East Construction Market, By Sector:

• Commercial
• Residential
• Industrial
• Infrastructure

Middle East Construction Market, By Construction Type:

• New Construction
• Repair & Maintenance

Middle East Construction Market, by region:

• Saudi Arabia
• UAE
• Qatar
• Kuwait
• Bahrain
• Iran
• Israel
• Rest of Middle East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Middle East Construction Market.

Available Customizations:

Middle East construction market report with the given market data, the publisher offers customizations according to a company's specific needs.


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