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Saudi construction pivots from gigaprojects to events

10 September 2025

 

Saudi Arabia’s construction sector is undergoing a transition in 2025, shifting from the gigaproject era that dominated market activity between 2020 and 2024 to a new phase focused on delivering high-profile international events.

As the market pivots, it has entered a quieter phase compared to the previous three years. As of the end of August, the total value of construction contract awards stood at $15.5bn, according to regional projects tracker MEED Projects, which is significantly below the annual totals recorded since 2021. 

The market had grown significantly during the gigaprojects era, from $19.2bn in 2021 to $29.9bn in 2022, and then to $33.1bn in 2023, before peaking at $36bn in 2024. By comparison, the year-to-date figure for 2025 suggests that unless activity accelerates in the final quarter, the full year total is likely to end well below the highs of the past three years.

Historically, the current levels are still above the sector’s trough years between 2016 and 2020, when awards typically hovered around $10bn-$13bn, but they signal a cooling from the exceptional momentum of the early 2020s.

Construction priorities

The slowdown in 2025 reflects the transition in market priorities as event-driven programmes come into focus. Saudi Arabia has won a series of major events that will drive the construction agenda over the coming decade.

First is the 2027 AFC Asian Cup, which will be hosted at various locations across the kingdom. Next is the Asian Winter Games at Neom’s Trojena in 2029, although recent reports suggest the event may be postponed to 2033, with China or South Korea potentially stepping in to host in 2029.

In 2030, Riyadh will host the World Expo, and in 2034, Saudi Arabia is set to host both the Fifa World Cup and the Asian Games.

Saudi Arabia secured the rights to host these events across a three-year period from 2022 to 2024, and since then, attention has turned to delivering the projects needed to ensure that these events are a success. 

Looking ahead, more stadium construction contracts will be tendered, along with other building projects that will provide hotel and commercial space to support the events

Stadium development

The most recent example of this shifting focus came in early September, when MEED reported that Qiddiya Investment Company (QIC) had started the procurement process for an estimated SR7bn ($1.8bn) contract to develop the National Athletics Stadium.

Located within the Qiddiya Sports Park cluster and scheduled for completion by 2030, the project is an ambitious undertaking. It will cover an area of approximately 182,000 square metres and is being benchmarked against the design of the London Olympic Stadium.

The athletics stadium follows progress on other event-related schemes, including the appointment of contractors for football stadiums in Qiddiya, Riyadh, Al-Khobar and Jeddah, as well as major infrastructure and building contracts for work at Trojena.

Looking ahead, more stadium construction contracts will be tendered, along with other building projects that will provide hotel and commercial space to support the events. Meanwhile, construction contracts worth an estimated $7bn are expected to be tendered for the Expo site.

Infrastructure expansion

Additional infrastructure projects will also be required. King Khalid International airport needs to be upgraded, and tendering has begun for major construction packages that will transform the existing airport into a much larger facility known as King Salman International airport. The Riyadh metro network will also be upgraded.

Gigaprojects plateau

The focus on event-driven development comes as the gigaproject programme cools. According to MEED Projects, the five official gigaprojects have not generated the growth in contract awards that was initially expected when they were first launched.

Over the past three years, the total value of contract awards across the five official gigaprojects has remained largely flat, with $15.9bn of contract awards in 2023, $18.2bn of awards in 2024 and $9.3bn by the end of August 2025. 

According to MEED Projects, the most active gigaproject developer in 2025 in terms of contract awards has been Diriyah with a total of $4.9bn, which is over half of the total for the year so far. Roshn has awarded $1.7bn of contracts, Neom $1.4bn, Qiddiya $1.2bn and Red Sea Global $100m.

While the pace of contract awards on the gigaprojects has failed to grow, projects continue to be delivered. This is most apparent at the Red Sea Project, where a series of hotel and resort launches have taken place, including Sheybarah Island, featuring its distinctive metal orbs that sit above the water. 

Broader transformation

Although construction progress has not met expectations, the gigaproject programme has already achieved many of its broader ambitions. Ambitious project launches have altered global perceptions of Saudi Arabia, as it positions itself as a modern, welcoming society eager to play an active role on the world stage.

This has contributed to Saudi Arabia’s economic objectives outlined in the Vision 2030 national strategy, which was launched in 2016. The 2024 annual report, released earlier this year, disclosed that 93% of the key performance indicators for the kingdom’s Vision Realisation Programme and national strategy had either been fully achieved or were on track as of 2024.

Major international events will elevate Saudi Arabia’s aspirations to another level, and the construction sector will play a crucial role in delivering the buildings and infrastructure necessary to make those events a success.

Infrastructure takes centre stage in Saudi strategy

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Colin Foreman

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