Middle East Construction Market by Type (Renovation and New Construction), and by Sector (Real Estate, Infrastructure, and Industrial)–Opportunity Analysis and Industry Forecast, 2024–2030
Industry: Construction & Manufacturing | Publish Date: 28-Oct-2024 | No of Pages: 111 | No. of Tables: 78 | No. of Figures: 43 | Format: PDF | Report Code : CM2226
Speak to Our Analyst
Middle East Construction Market Overview
The Middle East Construction Market size was valued at USD 298.00 billion in 2023, and is predicted to reach USD 401.17 billion by 2030, at a CAGR of 2.9% from 2024 to 2030.
The construction market, known interchangeably as infrastructure market, plays a crucial role in the economy, overseeing the entire lifecycle of diverse physical structures, encompassing infrastructure, buildings, and facilities. This industry undertakes a broad spectrum of projects, spanning from residential, commercial, and industrial developments to civil engineering and institutional infrastructure ventures.
Collaboration among numerous stakeholders, including architects, engineers, contractors, suppliers, developers, investors, and government agencies, is indispensable for its functioning. Positioned for growth, the industry is being propelled by an increased focus on environmentally sustainable practices, such as the incorporation of green building materials and energy-efficient designs. Additionally, factors such as the rising per capita income in emerging economies and low-interest rates in developed nations are expected to further drive the expansion of the infrastructure market.
Numerous Infrastructure Developments Drives the Market Growth
The Middle East region, including countries such as Oman, Saudi Arabia, and Kuwait, is experiencing numerous infrastructure developments aimed at boosting overall market growth. In Oman, the infrastructure market is expanding significantly due to increased investments in large infrastructure projects. Notable megaprojects in 2023 include Rathath (Drizzle) Boulevard in Dhofar, Rimal Park in South Al Batinah, and Aames Bay Development in Musandam. These substantial projects are driving the growth of the infrastructure industry within Oman.
Significant Investments is Fueling the Growth of the Market
The expansion of the construction market in Saudi Arabia is attributed to a substantial increase in investments towards infrastructure activities. In 2023, the infrastructure sector's investment reached a significant USD 18 billion, as reported by the Global Infrastructure Hub. The energy sector led the way with a notable USD 7.6 billion investment, followed by the road transport sector with USD 5.6 billion. This investment trend is expected to continue, likely fueling the ongoing growth and development of the infrastructure market in Saudi Arabia.
Regulatory Complexities Hindering Market Growth
Navigating regulatory complexities presents a significant challenge in the construction market. Infrastructure projects often face hurdles due to the intricate network of government regulations and permitting procedures. Infrastructure initiatives require numerous permits and approvals from governmental bodies at local, regional, and national levels.
These mandates include adherence to zoning regulations, environmental assessments, compliance with building codes, safety standards, and various other regulatory requirements. Lengthy permit acquisition processes, bureaucratic inefficiencies, and regulatory disparities among different jurisdictions can significantly prolong project timelines and inflate costs. Moreover, fluctuations in regulations or unexpected policy changes can disrupt ongoing projects and deter potential investments.
Integration of Digitalization and BIM Presents Lucrative Opportunity for Market Expansion
The construction market in Middle East is undergoing a significant transformation with the integration of digitalization and the adoption of Building Information Modeling (BIM). Advanced technologies such as BIM are enhancing efficiency, accuracy, and collaboration across diverse projects. BIM, a sophisticated 3D modeling tool, enables stakeholders to generate and manage digital representations of structures and infrastructure, facilitating improved coordination and communication among project teams.
For instance, in September 2022, the National Institute of Building Sciences (NIBS) launched the Middle East National Building Information Management (BIM) Program. This initiative aims to revolutionize the infrastructure market, achieving unprecedented levels of industrial efficiency through digitalization. By addressing the inadequacy of digitalization within the Thai infrastructure sector, the program seeks to streamline lifecycle work processes, enhancing efficiency, cost-effectiveness, resilience, and safety for infrastructure and maintenance projects.
Competitive Landscape
The market players operating in the Middle East infrastructure industry Arabtec Construction LLC, Emaar Properties, General Construction Company, Al Habtoor Group, Saudi Binladin Group, Saudi Oger, Qatari Diar Real Estate Investment Company, Arab Engineering Bureau (AEB), Kharafi National, Combined Group Contracting Co. (CGC), and others.
Middle East Construction Market Key Segments
By Type
-
Renovation
-
New Construction
By Sector
-
Real Estate
-
Residential
-
Affordable
-
Luxury
-
-
Commercial
-
Retail Buildings
-
Office Buildings
-
Hospitality
-
Healthcare Facilities
-
Educational Institutes
-
Entertainment Ventures
-
-
-
Infrastructure
-
Transportation
-
Airport
-
Port
-
Rail
-
Road
-
-
Water and Wastewater
-
Energy
-
Telecommunication
-
-
Industrial
-
Manufacturing Plant
-
Warehouses
-
Power Plants
-
Oil Refineries
-
Chemical Plants
-
Key Players
-
Arabtec Construction LLC
-
Emaar Properties
-
General Construction Company
-
Al Habtoor Group
-
Saudi Binladin Group
-
Saudi Oger
-
Qatari Diar Real Estate Investment Company
-
Arab Engineering Bureau (AEB)
-
Kharafi National
-
Combined Group Contracting Co. (CGC)
REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2023 |
USD 298.00 Billion |
|
Revenue Forecast in 2030 |
USD 401.17 Billion |
|
Growth Rate |
CAGR of 2.9% from 2024 to 2030 |
|
Analysis Period |
2023–2030 |
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2030 |
|
Market Size Estimation |
Billion (USD) |
|
Growth Factors |
|
|
Companies Profiled |
10 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
At Next Move Strategy Consulting, we understand that insightful market research is the cornerstone of successful business decisions. That's why we employ a robust and multifaceted approach, combining various methodologies to deliver the most accurate and actionable data for our clients.
Research Landscape
We navigate the world of research with two primary approaches:
Qualitative Approach
Our qualitative research methodologies involve immersive techniques such as in-depth interviews, focus groups, and observational studies. By engaging directly with individuals and stakeholders, we uncover valuable insights that quantitative data alone may overlook.
Quantitative Research
In tandem with qualitative methodologies, NMSC leverages the power of Quantitative Research to provide a robust foundation of numerical insights. Through systematic data collection and analysis, we quantify patterns, preferences, and market trends, offering a comprehensive view of the business landscape.
Our quantitative research approach employs diverse tools, including surveys, experiments, and statistical modelling. These methodologies enable us to gather data from a large and representative sample, ensuring the statistical significance of our findings. By employing structured questionnaires and standardized data collection methods, we guarantee the reliability and validity of the information we present to our clients.
Quantitative research is particularly effective in measuring the prevalence of trends, assessing market size, and gauging the impact of various factors on consumer behavior. The numerical precision attained through this approach equips our clients with actionable insights, facilitating data-driven decision-making and strategy formulation.
Our Specialized Toolbox for Industry-Specific Market Research
We deploy a specialized arsenal of techniques tailored to meet your unique requirements. Here's a glimpse into our comprehensive toolbox:
Information Procurement
The stage entails acquiring market data or relevant information through various sources and methodologies.
Market Research Approach
We utilize both top-down and bottom-up approaches in market research analysis to achieve a comprehensive understanding of the market dynamics, leveraging the broad perspective of industry trends and macroeconomic factors alongside detailed insights from specific segments and individual companies.
Porters Five Forces Analysis
We conduct Porter's Five Forces analysis to evaluate the competitive landscape of an industry, providing us with insights into factors that affect profitability and strategic positioning.
SWOT Analysis
We conduct SWOT analysis to understand market trends, identify potential threats, capitalize on opportunities, and assess our strengths and weaknesses.
Forecasting
We utilize a forecasting model to predict future consumption by considering parameters like population, economics, regulations, market competition, drivers, constraints, technology, and pricing. We also employ statistical techniques such as multilinear regression, exponential smoothing, moving average, ARIMA, and Monte Carlo simulations for accurate predictions. In econometric forecasting, we analyzed short-term and long-term event impacts, attributing values based on regulatory frameworks, economic factors, and market events.
