Construction Industry in Saudi Arabia

Abstract

Saudi Arabia has experienced a construction boom of unprecedented volume during the past decade, attracting construction professionals from all over the world. Construction industry was the greatest recipient of the government spending during both the First (1970–1975) and Second (1975–1980) National Development Plans. It has received 49.6% and 32% of total government expenditures during the two plans, respectively. Construction projects worth over U.S. S130 billion will be executed in the country between 1980 and 1985. Construction industry in Saudi Arabia employs 15% of the total labor force and uses 14% of the total energy consumption in the country. It contributes about 20% to the total non‐oil gross domestic product. The purpose of this paper is to describe the status and size of construction activities in Saudi Arabia. Construction facts and figures are cited, and a few examples are discussed in more details in order to help the reader visualize, evaluate and understand the size, diversity and type of the construction boom in Saudi Arabia. The future trends in the construction industry are discussed, and a few recommendations are included as well.