Saudi Projects Value Reaches $2.07 Trillion in H1 2026
The total value of projects planned or underway across Saudi Arabia reached $2.07 trillion in H1 2026, highlighting the scale of the Kingdom’s long-term development ambitions under Vision 2030, according to Knight Frank’s latest Saudi Arabia Construction Landscape Review. Of the $2.07 trillion total project pipeline, $1.23 trillion comprises construction and real estate projects, while the remaining $940 billion is across power, transport, industrial, water, chemical, gas and oil projects. Construction remains a major component of the Kingdom’s development activity, with construction-sector output forecast to reach approximately $190.4 billion in 2026, compared with $179.4 billion in 2025, before rising to around $250.2 billion by 2030. However, the ongoing regional conflict is creating additional pressure across the construction and development sector. Disruption to regional shipping and supply chains, alongside higher logistics and input costs, is creating risks around procurement, project timelines and delivery costs, particularly for projects reliant on imported materials and equipment. Approximately $293.1 billion worth of construction, industrial and transport contracts were awarded across Saudi Arabia between 2020 and August 2026. Riyadh province accounted for $135.4 billion, or approximately 46% of the total, including $96.1 billion of construction contracts and $34.8 billion of transport contracts. Makkah Province followed with $48.1 billion, while the Eastern Province accounted for $39.9 billion. Between January and July 2026, reinforcing steel bar prices rose by approximately 24%, iron-binding wire by 19.6% and aluminium by 13.9%. These increases are adding pressure to project budgets at a time when supply-chain disruption and longer lead times are also complicating procurement. Knight Frank’s analysis shows that residential construction costs have increased across all segments over the last year. Standard villa construction costs have risen from SAR3,800–4,400 per sqm in 2025 to SAR4,100–4,800 per sqm in 2026, while high-end villa costs now range between SAR6,000 and SAR8,700 per sqm, compared with SAR5,500–8,000 per sqm last year.