Market Size of GCC Construction Industry
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 169.30 Billion |
| Market Size (2029) | USD 216.80 Billion |
| CAGR (2024 - 2029) | > 5.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
GCC Construction Market Analysis
The GCC Construction Market size is estimated at USD 169.30 billion in 2024, and is expected to reach USD 216.80 billion by 2029, growing at a CAGR of greater than 5% during the forecast period (2024-2029).
The GCC projects market has faced various challenges in recent years, including the global pandemic, inflation, and geopolitical issues. These challenges have tested contractors, suppliers, and engineering firms as they try to adapt to the rapidly changing market conditions.
In 2020, the market experienced a low, with contract awards totaling just over USD 71 billion due to the impact of COVID-19. However, in 2021, the market rebounded strongly to almost USD 116 billion, thanks to higher oil prices and the resumption of delayed projects. At the beginning of 2022, there was optimism for continued recovery, but the market did not perform as expected. In total, about USD 94 billion worth of contracts were awarded in 2022, which was a decline of over USD 20 billion compared to the previous year. This contraction in 2022 can be largely attributed to a 25% decline in new contracts in the UAE and a 44% decline in Qatar. Qatar has reduced its capital expenditure in preparation for the FIFA World Cup, while the UAE continues to face challenges in its real estate sector.
The only positive aspect is Saudi Arabia, which has seen contract awards worth just under USD 54 billion, making its projects market larger than the combined markets of the other five GCC states.
GCC Construction Industry Segmentation
The construction market is defined as companies that are engaged in the construction of buildings or engineering projects, such as bridges and roads. Construction work also takes place when renovating existing buildings.
The construction market in GCC countries is segmented by sector into commercial construction, residential construction, industrial construction, infrastructure (transportation) construction, and energy and utility construction, and by country into Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
The report offers market size and forecasts in value (USD) for all the above segments.
| By Sector | |
| Commercial Construction | |
| Residential Construction | |
| Industrial Construction | |
| Infrastructure (Transportation) Construction | |
| Energy and Utilities Construction |
| By Country | |
| United Arab Emirates | |
| Saudi Arabia | |
| Oman | |
| Qatar | |
| Kuwait | |
| Bahrain |
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.
GCC Construction Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Current Economic and Construction Market Scenario
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1.2 Technological Innovations in the Construction Market
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1.3 Review and Commentary on the Extent of Government Infrastructure Development Schemes
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1.4 Comparison of Key Industry Metrics in GCC
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1.5 Comparison of Construction Cost Metrics in GCC
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1.6 Impact of Government Regulations and Initiatives in the Construction Industry
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1.7 Real Estate Prices (sales and leasing) by Asset Classes (residential, commercial, retail)
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1.8 Industry Value Chain/Supply Chain Analysis
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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 Commercial Construction
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2.1.2 Residential Construction
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2.1.3 Industrial Construction
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2.1.4 Infrastructure (Transportation) Construction
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2.1.5 Energy and Utilities Construction
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2.2 By Country
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2.2.1 United Arab Emirates
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2.2.2 Saudi Arabia
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2.2.3 Oman
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2.2.4 Qatar
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2.2.5 Kuwait
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2.2.6 Bahrain
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GCC Construction Market Size FAQs
How big is the GCC Construction Market?
The GCC Construction Market size is expected to reach USD 169.30 billion in 2024 and grow at a CAGR of greater than 5% to reach USD 216.80 billion by 2029.
What is the current GCC Construction Market size?
In 2024, the GCC Construction Market size is expected to reach USD 169.30 billion.
