Report Description

Forecast Period

2024-2028

Market Size (2022)

USD 86.7 Billion

Largest Market

Building Construction

CAGR (2023-2028)

5.29%

Fastest Growing Segment

Repair & Maintenance


The Middle East Construction Market has valued at USD 86.7 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 5.29% through 2028. 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.


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Recent Development

  • In November 2021, ASSENT declared a new contract with global engineering business JGC Corporation. ASSENT transfers/deliver 3,500 tons of fabricated steel to the Basrah refinery upgrade project in Iraq.
  • In June 2021, Red Sea International Corporation, in Saudi Arabia signed SAR 52.93 million (USD 14.09 million) contract with AlUla's Royal Commission (RCU), and they constructed a key residential complex in AlUla. The contract covers the design, construction, supply, and installation of 150 modular, high-quality, fully furnished buildings or apartments that will serve as one of RCU's strategic housing projects in AlUla.
  • In 2021, Infrastructure saw strong project awards across the Middle east region, with Egypt contributing USD 6.9 billion, Saudi Arabia contributing approximately USD 3 billion and the United Arab Emirates USD 973 million. In the construction project rewards, the residential sector was consistently the most effective market in Egypt, Saudi Arabia, and United Arab Emirates.
  • Saudi Electricity Corporation. (SEC) has rewarded by the smart metering project at a cost of Saudi Riyal 9.55bn (USD 2.55 Billion). The project started on December 19, 2019, and involves installing and commissioning 10 million smart meters for consumers across Saudi Arabia. The consortium of Etihad Etisalat Corporation & Al-Fanar Construction would likely to implement the project in central and eastern areas of Saudi Arabia. The project is anticipated to be completed by the end of 2030.

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.

Attribute

Details

Base Year

2022

Historic Data

2018 – 2022

Estimated Year

2023

Forecast Period

2024 – 2028

Quantitative Units

Revenue in USD Million, and CAGR for 2018-2022 and 2024-2028.

Report coverage

Revenue forecast, company share, growth factors, and trends

Segments covered

Type

End User

Sector

Construction Type

Country

Regional scope

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

Key companies profiled

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, Almabani General Contractors, Airolink Building Contracting LLC

Customization scope

10% free report customization with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs.

Delivery Format

PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

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, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

Middle East construction market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1.    Product Overview

1.1.  Market Definition

1.2.  Scope of the Market

1.3.  Markets Covered

1.4.  Years Considered for Study

1.5.  Key Market Segmentations

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary

4.    Voice of Customers

5.    Middle East Construction Market Outlook

5.1.  Market Size & Forecast

5.1.1.    By Value

5.2.  Market Share & Forecast

5.2.1.    By Type (Building Construction, Heavy & Civil Engineering Construction, Others)

5.2.2.    By End User (Private, Public)

5.2.3.    By Sector (Commercial, Residential, Industrial, Infrastructure)

5.2.4.    By Construction Type (New Construction, Repair & Maintenance)

5.2.5.    By Country (Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, Israel, Iran and Rest of Middle East)

5.3.  By Company (2022)

5.4.  Market Map

6.    Saudi Arabia Construction Market Outlook

6.1.  Saudi Arabia Economic Profile

6.2.  Market Size & Forecast

6.2.1.    By Value

6.3.  Market Share & Forecast

6.3.1.    By Type

6.3.2.    By End User

6.3.3.    By Sector

6.3.4.    By Construction Type

7.    UAE Construction Market Outlook

7.1.  UAE Economic Profile

7.2.  Market Size & Forecast

7.2.1.    By Value

7.3.  Market Share & Forecast

7.3.1.    By Type

7.3.2.    By End User

7.3.3.    By Sector

7.3.4.    By Construction Type

8.    Qatar Construction Market Outlook

8.1.  Qatar Economic Profile

8.2.  Market Size & Forecast

8.2.1.    By Value

8.3.  Market Share & Forecast

8.3.1.    By Type

8.3.2.    By End User

8.3.3.    By Sector

8.3.4.    By Construction Type

9.    Kuwait Construction Market Outlook

9.1.  Kuwait Economic Profile

9.2.  Market Size & Forecast

9.2.1.    By Value

9.3.  Market Share & Forecast

9.3.1.    By Type

9.3.2.    By End User

9.3.3.    By Sector

9.3.4.    By Construction Type

10. Bahrain Construction Market Outlook

10.1.             Bahrain Economic Profile

10.2.             Market Size & Forecast

10.2.1. By Value

10.3.             Market Share & Forecast

10.3.1. By Type

10.3.2. By End User

10.3.3. By Sector

10.3.4. By Construction Type

11. Iran Construction Market Outlook

11.1.             Bahrain Economic Profile

11.2.             Market Size & Forecast

11.2.1. By Value

11.3.             Market Share & Forecast

11.3.1. By Type

11.3.2. By End User

11.3.3. By Sector

11.3.4. By Construction Type

12. Israel Construction Market Outlook

12.1.             Bahrain Economic Profile

12.2.             Market Size & Forecast

12.2.1. By Value

12.3.             Market Share & Forecast

12.3.1. By Type

12.3.2. By End User

12.3.3. By Sector

12.3.4. By Construction Type

13. Market Dynamics

13.1.             Drivers

13.2.             Challenges

14. Market Trends & Developments

15. Policy’s & Regulatory Landscape

16. Company Profiles

16.1.             Orascom Construction Plc

16.1.1. Business Overview

16.1.2. Key Revenue and Financials (If Available)

16.1.3. Recent Developments

16.1.4. Key Personnel

16.1.5. Key Product/Services

16.2.             Nesma & Partners Contracting Co. Ltd

16.2.1. Business Overview

16.2.2. Key Revenue and Financials (If Available)

16.2.3. Recent Developments

16.2.4. Key Personnel

16.2.5. Key Product/Services

16.3.             Al Bawani Company.

16.3.1. Business Overview

16.3.2. Key Revenue and Financials (If Available)

16.3.3. Recent Developments

16.3.4. Key Personnel

16.3.5. Key Product/Services

16.4.             ALEC Engineering and Contracting (ALEC)

16.4.1. Business Overview

16.4.2. Key Revenue and Financials (If Available)

16.4.3. Recent Developments

16.4.4. Key Personnel

16.4.5. Key Product/Services

16.5.             Arabian Construction Company (ACC)

16.5.1. Business Overview

16.5.2. Key Revenue and Financials (If Available)

16.5.3. Recent Developments

16.5.4. Key Personnel

16.5.5. Key Product/Services

16.6.             ASGC Group

16.6.1. Business Overview

16.6.2. Key Revenue and Financials (If Available)

16.6.3. Recent Developments

16.6.4. Key Personnel

16.6.5. Key Product/Services

16.7.             Arab Contractors (AC)

16.7.1. Business Overview

16.7.2. Key Revenue and Financials (If Available)

16.7.3. Recent Developments

16.7.4. Key Personnel

16.7.5. Key Product/Services

16.8.             Al Naboodah Construction Group

16.8.1. Business Overview

16.8.2. Key Revenue and Financials (If Available)

16.8.3. Recent Developments

16.8.4. Key Personnel

16.8.5. Key Product/Services

16.9.             Almabani General Contractors

16.9.1. Business Overview

16.9.2. Key Revenue and Financials (If Available)

16.9.3. Recent Developments

16.9.4. Key Personnel

16.9.5. Key Product/Services

16.10.          Airolink Building Contracting LLC.

16.10.1.              Business Overview

16.10.2.              Key Revenue and Financials (If Available)

16.10.3.              Recent Developments

16.10.4.              Key Personnel

16.10.5.              Key Product/Services

17. Strategic Recommendations

18.  About Us & Disclaimer

Figures and Tables

Frequently asked questions

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The leading 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, Almabani General Contractors, and Airolink Building Contracting LLC.

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The residential segment is dominating the market due to the reason that demand of buildings and houses are growing as population in the middle east region in the future period.

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Participation of foreign investors, urban development and modernization projects, rising population growth along with increasing housing demand and vision of 2030 are the major driving forces propelling the market growth in the future.

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Developing companies demonstrate an affinity for using expert labor for construction tasks and favor hiring qualified electricians, carpenters, etc due to which the cost of project increases. Hence, the construction industry faces difficulties due to middle east lacks a competent labor force.

profile

Srishti Verma

Business Consultant
Press Release

Middle East Construction Market to be Dominated by Residential Segment Until 2028

Aug, 2023

Latest government plans and growing construction GDP in the middle east region are the factors driving the Middle East construction market growth