Africa and Saudi Arabia Construction Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

Construction Market Size

• The Africa and Saudi Arabia construction market was valued at USD 472.89 Billion in 2024 and is expected to reach USD 664.24 Billion by 2032
• During the forecast period of 2025 to 2032 the market is likely to grow at a CAGR of 4.4%, primarily driven by increasing demand for enhanced tactile and visual experiences in built environments, sustainability trends, and the growing preference for premium, high-performance construction materials in both residential and commercial sectors
• This growth is driven by factors such as rising demand for premium-quality building materials, increased preference for sustainable and eco-friendly construction solutions, and innovation in material technology and application techniques

Africa and Saudi Arabia Construction Market Analysis

• Governments across Africa are prioritizing infrastructure projects like roads, energy, and transportation to boost economic growth. Major investments are coming from international partners, especially China, driving demand for construction materials and expertise across both urban and rural regions
• Rapid urbanization and population growth are fueling demand for affordable housing and urban infrastructure. This is creating opportunities in residential, commercial, and social infrastructure development, particularly in cities like Lagos, Nairobi, and Johannesburg
• African nations are increasingly relying on public-private partnerships to fund and manage large-scale construction projects. These partnerships are crucial in addressing funding gaps while introducing modern construction practices and global players into local markets

• For instance, In March 2025, Saudi Arabia's Vision 2030 aims to boost foreign direct investment by encouraging joint ventures, offering benefits like market access and local expertise. Foreign investors should conduct thorough due diligence on potential partners and carefully select appropriate legal structures to ensure successful collaborations

• Saudi Arabia's Vision 2030 has sparked a surge in mega infrastructure and smart city projects like NEOM, The Line, and Qiddiya. These initiatives are transforming the construction landscape with futuristic designs and massive investment flows.

Report Scope and Construction Market Segmentation

Africa and Saudi Arabia Construction Market Trends

“Eco-Friendly Practices Shaping Future Construction with Lasting Impact”

• Builders are increasingly adopting recycled, renewable, and low-impact materials like bamboo, fly ash concrete, and reclaimed wood. These materials reduce environmental harm, improve energy efficiency, and support long-term resource conservation across residential, commercial, and infrastructure projects
• Green construction emphasizes passive design strategies, solar integration, and efficient HVAC systems. These elements lower operational energy needs, reduce carbon footprints, and provide long-term cost savings for occupants, while aligning with global climate action goals and green certification standards
• Modern construction embraces strategies to minimize site waste through modular design, prefabrication, and recycling. Emphasis on circular economy principles ensures materials are reused or repurposed, significantly reducing landfill contributions and promoting environmental accountability across the project lifecycle

• ​The Bullitt Center in Seattle utilizes FSC-certified heavy timber for its structure, reducing its carbon footprint and enhancing interior aesthetics. This approach sequesters 545 metric tons of CO₂, showcasing sustainable construction practices.

Integration of IoT, smart sensors, and building automation optimizes energy use, water management, and maintenance. These technologies enhance building performance, improve occupant well-being, and align construction practices with sustainability and efficiency expectations in urban and rural development alike.

Africa and Saudi Arabia Construction Market Dynamics

Driver

“Rapid Urbanization and Growing Population”

• The region faces the challenge of accommodating an expanding urban population in a space-constrained environment. There is a pressing need for smart urban planning, high-density housing, and sustainable infrastructure. The emphasis is on green buildings, smart cities, and energy-efficient construction to support the region's commitment to environmental sustainability. In addition, the demand for office spaces, logistics hubs, and transport networks to facilitate economic growth further drives construction activities
• Africa is witnessing one of the fastest population growth rates globally, with urban centers expanding rapidly
• Countries such as South Africa are investing heavily in large-scale infrastructure projects, including roads, bridges, railways, and housing developments. The rising middle class and increasing urban migration are accelerating the need for affordable and high-quality housing solutions

For instance,

• In January 2025, according to an article by the Associated Press, Tatu City is a privately developed, mixed-use urban hub near Nairobi, Kenya, designed to accommodate over 250,000 residents. It features residential, commercial, and industrial zones, easing congestion in Nairobi and promoting sustainable urban growth. The project reflects Africa’s shift toward planned cities amid rapid population expansion
• In February 2025, according to an article by ARAB news, Saudi Arabia’s urban population is projected to grow by 30% between 2020 and 2030, increasing the demand for housing and infrastructure. The government is investing in large-scale residential projects to accommodate this expansion, aligning with Vision 2030 goals
• Governments and private investors are focusing on Public-Private Partnerships (PPPs) to address the housing deficit while also improving essential services such as water supply, sanitation, and energy infrastructure.

Opportunity

“Expansion of Smart Cities and Urban Infrastructure”

• The region is at the forefront of smart city initiatives. They are investing heavily in sustainable infrastructure, digital connectivity, and intelligent mobility solutions
• The emphasis on energy-efficient buildings, smart grids, and green transportation creates demand for advanced construction techniques, including prefabrication, modular construction, and energy-efficient materials
• The Union’s green transition policies further drive opportunities for firms specializing in eco-friendly urban development
• Africa is experiencing unprecedented urban growth, with cities expanding at a rapid pace due to population increases and economic development
• Countries such as Nigeria, Kenya, Egypt, and South Africa are prioritizing infrastructure projects, including smart housing, transportation networks, and digital infrastructure

For instance,

• In September 2024, according to an article by the Wilson Center, the article highlights how Gulf countries, including Saudi Arabia and the UAE, are rapidly developing smart cities like NEOM and Masdar City. These projects emphasize AI, renewable energy, and digital infrastructure to improve urban living. The initiatives align with economic diversification goals under Saudi Vision 2030
• According to an article by dmg events, Saudi Arabia's construction sector is experiencing rapid growth, driven by Vision 2030, which aims to diversify the economy and develop public services. With over 5,200 projects worth USD 819 billion, key initiatives such as the Line and NEOM focus on smart infrastructure, renewable energy, and sustainable urban development
• The rise of smart city projects, such as Konza Technopolis in Kenya and Eko Atlantic in Nigeria, highlights Africa’s commitment to technology-driven urbanization
• Construction companies can benefit from partnerships with governments and international investors to deliver projects involving smart water management, waste recycling systems, and sustainable energy solutions
• Moreover, Africa’s focus on Public-Private Partnerships (PPPs) creates additional opportunities for global construction firms

Restraint/Challenge

 “High Cost of Raw Materials and Supply Chain Disruptions”

• The escalating prices of essential raw materials such as steel, cement, aluminum, and lumber are acting as a major restraint on the construction industry. Factors such as global inflation, increasing energy costs, and geopolitical instability have driven up production and transportation expenses. In Saudi Arabia, the high demand for materials due to large-scale infrastructure projects under Vision 2030 is straining supply chains and elevating costs
• Similarly, in Africa, limited local production capacity forces reliance on expensive imports, making construction projects financially burdensome. The region also faces cost constraints due to strict environmental regulations, carbon taxation, and fluctuating material prices, impacting the affordability and feasibility of projects
• Supply chain inefficiencies further restrict the growth of the construction sector in these regions. Delays in raw material procurement, transportation bottlenecks, and labor shortages have resulted in prolonged project timelines and increased costs

For instance,

• In February 2025, according to an article by Zawya, The rising construction costs in Saudi Arabia and the UAE are further exacerbated by inflation, supply chain disruptions, and increased infrastructure project demands. Developers and contractors must adapt by optimizing resources, exploring alternative materials, and implementing cost-effective strategies to mitigate financial strain and ensure project feasibility
• Inadequate logistics infrastructure and port congestion hinder the timely delivery of construction materials. Saudi Arabia, despite having a well-developed supply chain network, remains dependent on global imports, making it vulnerable to international trade disruptions
• The region, heavily reliant on maritime trade, faces shipment delays and supply inconsistencies, restraining market momentum

Construction Market Scope              

The market is segmented on the basis of construction materials, construction type, project stage, ownership & investment model, end user sector.

Africa and Saudi Arabia Construction Market Regional Analysis

“Africa is the Dominant Region in the Construction Market”

• Africa is expected to dominate the Africa and Saudi Arabia construction market due to rapid urbanization, large-scale infrastructure projects, and increasing foreign investments. Growing demand for housing, transportation, and energy developments positions Africa as the fastest-expanding construction market among the countries

“Saudi Arabia is Projected to Register the Highest Growth Rate”

• Saudi Arabia is the fastest-growing country in the Africa and Saudi Arabia construction market, driven by Vision 2030, large-scale infrastructure projects, smart cities, and increased investments in tourism, residential, and commercial developments, fostering rapid industry expansion

Africa and Saudi Arabia Construction Market Share

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, country presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

Construction Market Leaders Operating in the Market Are:

• Cemex, S.A.B. DE C.V. (Mexico)
• Sika AG (Switzerland)
• HOLCIM (Switzerland)
• Cementir Holding N.V. (Netherlands)
• Aditya Birla Management Corporation Pvt. Ltd. (India)
• Alturki Holding (Saudi Arabia)
• Dangote Industries Limited. (Switzerland)
• Yanbu Cement Company (Saudi Arabia)

Latest Developments in Construction Market

• In October 2024, Cemex expanded its electric mixer fleet to Mexico as part of its strategy to decarbonize operations under the Future in Action program, targeting net-zero CO₂ emissions by 2050. These mixers offer full-load capacity and day-long operation, with previous deployments in Germany and Dubai and planned expansions in France, Spain, Poland, and the Czech Republic
• In May 2024, Cemex was recognized as the top-ranking company in the World Benchmarking Alliance’s Climate and Energy Benchmark for the cement industry. This achievement highlights Cemex’s commitment to reducing carbon emissions and becoming a net-zero CO₂ company by 2050. The ranking assessed 91 global aluminum, cement, and steel companies based on climate targets and transition efforts
• In 2024, Sika has been honored with the Qatar Corporate Social Responsibility (CSR) Award in the Construction Sector for its holistic approach to sustainability and outstanding Green Building Initiatives. The award, recognizing the "Best Initiative" in the construction sector, celebrates Sika's unwavering commitment globally and locally in Qatar to ecological integrity, social well-being, and sound governance principles, all while generating value for shareholders. The awarding ceremony took place in the context of the 2nd edition of Qatar CSR Summit which took place from the 30 April to 2 May 2024. This CSR Summit is a significant event that focuses on Corporate Social Responsibility (CSR) in Qatar
• In April 2023, Sika has signed an agreement with the University of Cádiz (UCA) to cooperate in the domains of concrete protection, building facades, and industrial processes. The cooperation results from a successful partnership focusing on innovative techniques for the preservation of concrete structures. Now, the UCA and Sika bundle their knowledge to expand these technologies to further areas of application and to open new market potential

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