Saudi Arabia Commands MENA Construction Market, Securing a Dominant 67% Share in H1: JLL Report
According to JLL's construction market intelligence report, Saudi Arabia has taken the lead in the Middle East and North Africa construction market, contributing 67% of the total project value in the first half of 2023, accounting for around $44 billion.
The MENA region awarded projects worth $101 billion during this period, with the UAE also playing a significant role, contributing $23 billion. Despite a decline in the value of awarded projects in Egypt, the country maintained a robust pipeline of upcoming projects. The report projects a 4% annual average growth rate in Saudi Arabia's construction market between 2024 and 2027, driven by the Vision 2030 plan.
The UAE's construction market is expected to grow by over 3% annually during the same period. The combined estimated value of the project pipeline in the MENA region exceeded $3 trillion, with Saudi Arabia holding the largest share at approximately 35%. The UAE and Egypt each have an estimated value of $500 billion. The report anticipates that Saudi Arabia's inflation will drop to 2% in 2023, while the UAE's tender price inflation is expected to stabilize at around 2% in 2024.
