01 — Sector
Construction & Infrastructure
Construction remains the Kingdom’s largest contracting market, but 2025–26 have redrawn the map: giga-project budgets have been re-sequenced, while transport, Expo 2030, the 2034 World Cup and privately led projects carry the pipeline.
Key figures
- Construction contract awards in 2025, down from a record US$164bn in 2024
- US$84.5bn1
- Rebound in contract awards in the first half of 2026, led by the private sector
- +82%2
- Expo 2030 Riyadh site, with main buildings due to start in the third quarter of 2026
- 6m m²3
- MEED, January 2026
- AGBI, September 2026
- AGBI / Argaam, April 2026
What is driving demand
- Transport and road PPPs, such as the SAR 18bn+ Aseer–Jazan Expressway
- Expo 2030 Riyadh and FIFA World Cup 2034 venues
- Housing: 65.4% home ownership at end-2024, against a 70% target for 2030
- Giga-projects still in delivery, such as Diriyah (SAR 4.9bn of new contracts in the first half of 2026)
Who buys
- Government agencies, through tenders on Etimad
- Giga-project developers, through vendor prequalification
- The National Center for Privatization, through PPPs usually bid in consortia
- Private developers and main contractors
Typical entry route
Most international contractors and specialists enter through a joint venture or consortium with a classified Saudi contractor, then build their own presence. Contractor classification, local content and the RHQ rule shape which structure qualifies for which tenders.
Request a sector briefingWatch for
- Re-scoped or cancelled giga-project packages: NEOM’s The Line has been paused and re-scoped
- Payment cycles on public work: the statutory payment chain runs to about 70 working days, and delays occur in practice
- Joint and several liability in consortium bids, which members allocate between themselves through scope splits, cross-indemnities and parent-company guarantees
FAQ
Common questions
Do we need a Saudi partner to bid for construction tenders?
Not always, but it often decides eligibility. Contractor classification, local-content scoring and the RHQ rule mean many foreign firms bid in a consortium or joint venture with a classified Saudi contractor.
What is contractor classification?
The Ministry of Municipalities and Housing grades contractors by field of work and capacity through the Balady platform, and classification is required for most government construction tenders. A foreign-owned contractor can be classified once it operates through a Saudi entity with registered staff; allow one to two months, often more.
Is the giga-project market still open?
Yes, but selectively. Some projects have been paused or re-scoped since 2024, while others such as Diriyah continue to award work. We track where contracts are actually being awarded before you invest in bidding.
What is the RHQ rule?
Since 1 January 2024, government entities generally may not contract with foreign companies whose regional headquarters is outside the Kingdom, with exemptions such as contracts under SAR 1m.
Sources for this page: MEED (January 2026); AGBI (September 2026); Ministry of Municipalities and Housing, contractor classification; Government Tenders and Procurement Law and its implementing regulations.
Reference guides
The detail behind the decision.
Local content and local manufacturing: how the numbers work
Local content can outweigh a 10% price gap in a Saudi tender. How it is measured, the exact evaluation formula with a calculator, and the incentives that make manufacturing in the Kingdom pay.
10 min readReadSaudi Arabia’s industrial zones: a map and a guide to choosing one
More than fifty industrial cities, special economic zones and hubs, run by four different authorities with four different rulebooks. Where they are, what each offers, and how to choose.
9 min readReadSaudi Arabia’s trade agreements: where a Saudi-made product goes duty-free
Saudi Arabia negotiates trade deals through the GCC. What is in force, what has just been concluded, including the UK deal of May 2026, and the rules of origin that decide whether you benefit.
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