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Saudi Arabian construction market continues to expand

Jan 30, 2026

According to the latest "Saudi Arabia Construction Market Report" by Mordor Intelligence, the Saudi Arabian construction market is projected to reach US$112.35 billion in 2026 and grow to US$148.71 billion by 2031, with a compound annual growth rate (CAGR) of 5.77%.
This growth is not a short-term stimulus, but rather a multi-year construction cycle driven by large-scale infrastructure, residential construction, and city-level projects, providing continuous and stable market demand for related industries and supply chains.

Multiple types of projects are progressing simultaneously, leading to a wide range of applications and high procurement frequency for hardware products.
From a project structure perspective, the Saudi Arabian construction market exhibits the characteristic of multiple sectors advancing concurrently:
Infrastructure is the largest sector, accounting for 36.6% of market revenue in 2025.
Residential construction is the fastest-growing sector, with a CAGR of 6.55% from 2026 to 2031.
New construction projects account for 81.2% of overall construction activity, creating extremely high demand for standardized, scalable hardware products.

These projects directly drive long-term procurement of the following products:
Building hardware, structural connectors, fasteners
Engineering tools, power tools and accessories
Door and window systems, locks, tracks and installation accessories
Industrial consumables, construction auxiliary equipment, on-site tools
For Chinese manufacturers with stable production capacity, engineering-grade quality, and the ability to supply in bulk, Saudi Arabia is not a "single-project market," but rather a project-based market with recurring transactions.

Public investment is dominant, with stable procurement cycles, favoring long-term partnerships with suppliers.

The report shows:

Public investment will account for 71.5% of the construction market in 2025.
At the same time, private investment is growing faster, with an expected CAGR of 7.1% from 2026 to 2031.
This means that there are two core types of buyers in the market:
Government/semi-governmental project systems – prioritizing delivery capabilities, engineering experience, and long-term partnerships.
Local developers and project contractors – prioritizing cost-effectiveness, supply stability, and OEM/ODM capabilities.
Hardware and metal products in these two systems are typically procured through importers, distributors, OEM/ODM buyers, engineering procurement parties, or project-based integrators, rather than through retail channels.

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