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Dammam Commercial Construction Market Size (2024 - 2029)

The Dammam Commercial Construction Market is poised for growth, driven by significant developments in the energy and logistics sectors, which are crucial for enhancing the region's economic contribution and attracting foreign investments. The market's expansion is further supported by the Kingdom's commitment to modernizing its transport infrastructure, with substantial investments planned. There is a notable demand for retail developments that offer entertainment and food and beverage options, as tenants seek to establish themselves in well-managed or new projects. The hotel supply is also set to increase, contributing to the overall market size.

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Market Size of Dammam Commercial Construction Industry

Dammam Commercial Construction Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 250 Million
Market Size (2029) USD 356.5 Million
CAGR (2024 - 2029) 6.09 %
Market Concentration Medium

Major Players

Dammam Commercial Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

Dammam Commercial Construction Market Analysis

The Dammam Commercial Construction Market size is estimated at USD 250 million in 2024, and is expected to reach USD 356.5 million by 2029, growing at a CAGR of 6.09% during the forecast period (2024-2029).

  • The development of the new energy project is a significant step toward increasing economic contribution from different sectors in the industrial and logistics hub of the Kingdom. Dammam is one of the leading contributors to Saudi Arabia's oil GDP, with diversification in this area a key factor for attracting foreign investments and developing development opportunities.
  • The development of the logistics sector is an important component in Saudi Arabia's overall efforts to expand its road transport sector. In line with its commitment to strengthening and modernizing transport infrastructure, the Kingdom intends to invest more than SAR 500 billion (USD 123 billion by 2030) in this expansion.
  • The demand is directed toward retail developments with solid entertainment and F&B offerings. Tenants want to maintain a presence in well-managed developments or secure space in new developments.
  • There are currently 12,700 keys available in the total quality hotel supply. By 2025, with around 2,000 keys set to enter the market, assuming no additional delays and taking into account only projects that have already taken place, overall supply is projected to increase by 17%. The largest source of new supply will be the InterContinental Dammam (289 keys).

Dammam Commercial Construction Industry Segmentation

Commercial construction is the business of constructing and leasing or selling private-sector spaces. Offices, manufacturing plants, medical centers, and retail shopping centers are all examples of such spaces. The size and scale of commercial construction projects and businesses vary greatly.

A complete background analysis of Dammam’s commercial 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, along with the impact of COVID-19, is covered in the report.

Dammam’s commercial construction market is segmented by type (offices, retail, industrial, logistics, hospitality, and others). The report offers market size and forecasts in value terms (USD) for all the above segments.

By Type
Offices
Retail
Industrial
Hospitality
Others
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Dammam Commercial Construction Market Size Summary

The Dammam commercial construction market is poised for significant growth, driven by strategic developments in infrastructure and logistics. As a key contributor to Saudi Arabia's oil GDP, Dammam is central to the Kingdom's diversification efforts, attracting foreign investments and fostering development opportunities. The logistics sector's expansion is a crucial aspect of Saudi Arabia's broader strategy to enhance its transport infrastructure, with substantial investments planned to support this growth. The market is characterized by a demand for retail developments that offer robust entertainment and food and beverage options, as well as a focus on well-managed and new commercial spaces. The hospitality sector is also experiencing mixed performance, with increasing occupancy rates and rental prices for both Grade A and Grade B office spaces, indicating a healthy demand and positive economic sentiment in the region.

The commercial construction market in Dammam is competitive and fragmented, with several international players contributing to its dynamic landscape. Notable companies such as Zamil Steel Holding Company Limited, Red Sea Housing Services, and Al-Suwaidi Holding Company are key participants in this market. The Kingdom's Vision 2030, emphasizing infrastructure development, positions Saudi Arabia as a vital hub for international trade, leveraging its strategic geographical location. Recent agreements, such as those involving the Saudi Ports Authority and MEDLOG, highlight ongoing efforts to develop integrated logistics solutions, further enhancing Dammam's role in the national transport and logistics strategy. These developments, alongside the anticipated increase in office space and hospitality offerings, underscore the market's potential for growth over the forecast period.

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Dammam Commercial Construction Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Green and Sustainable Building Initiatives

    3. 1.3 Market Restraints

      1. 1.3.1 Saudization (Nitaqat) Program

    4. 1.4 Market Opportunities

      1. 1.4.1 Increased Foreign Investment

    5. 1.5 Value Chain / Supply Chain Analysis

    6. 1.6 Porter's Five Force Analysis

      1. 1.6.1 Threat of New Entrants

      2. 1.6.2 Bargaining Power of Buyers/Consumers

      3. 1.6.3 Bargaining Power of Suppliers

      4. 1.6.4 Threat of Substitute Products

      5. 1.6.5 Intensity of Competitive Rivalry

    7. 1.7 Impact of Covid-19 on the market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Offices

      2. 2.1.2 Retail

      3. 2.1.3 Industrial

      4. 2.1.4 Hospitality

      5. 2.1.5 Others

Dammam Commercial Construction Market Size FAQs

The Dammam Commercial Construction Market size is expected to reach USD 250 million in 2024 and grow at a CAGR of 6.09% to reach USD 356.5 million by 2029.

In 2024, the Dammam Commercial Construction Market size is expected to reach USD 250 million.

Dammam Commercial Construction Market Report Snapshots

Dammam Commercial Construction Market - Growth, Trends, COVID-19 Impact, and Forecasts (2024 - 2029)