Noha Gad
The construction sector in Saudi Arabia is undergoing a remarkable transformation, driven by ambitious government initiatives and a strategic vision to diversify the economy beyond oil dependence. This promising industry is projected to see a robust growth as of 2025, with an expected expansion rate of around 4.4% to 6.2%, according to a recent report by Global Data. This growth will be driven by massive investments in infrastructure, housing, commercial, and industrial projects.
Additionally, the construction sector in Saudi Arabia is anticipated to reach $174.3 billion by 2030, from $104.7 billion in 2024, with a compound annual growth rate (CAGR) of 8.7%, as stated in a recent report by Research and Markets, one of the world’s largest research market stores.
At the core of this surge are Saudi Arabia’s giga-projects, such as NEOM, Qiddiya, and the Red Sea Project, which aim to establish the Kingdom as a global hub for innovation, tourism, and entertainment. These projects, alongside urban development in major cities like Riyadh and Jeddah, are reshaping the economic landscape and creating vast opportunities for construction companies and suppliers
Technology is playing an increasingly pivotal role in this promising sector. The adoption of advanced construction technologies, such as Building Information Modeling (BIM), modular construction, 3D printing, and smart infrastructure systems, is accelerating efficiency, reducing costs, and improving project management.
Bisrat Degefa, Co-founder and CEO of TruBuild, a leading Saudi construction tech company, affirmed that the adoption of technology in the construction sector “has moved from experimental pilots to core strategy.” He highlighted that less than 10% of top developers in the region used digital procurement tools in 2019, while in 2025, over 60% are running live programs.
Another key player in the Saudi construction technology sector is WakeCap, a Riyadh-based company that integrates smart technology in the construction industry, focusing on enhancing safety, productivity, and efficiency. According to CEO Hassan Albalawi, mandating technology on major projects plays a pivotal role in promoting transparency, ensuring better compliance rates, and transforming safety protocols and practices in the construction industry and beyond.
Construction technologies vs. traditional methods
Although traditional construction methods in Saudi Arabia emphasize cultural preservation and adaptation to local climates, advanced technologies are transforming the sector by enhancing efficiency, sustainability, and scalability, ultimately accelerating the Kingdom’s broader economic diversification and urban development ambitions.
The integration of technology is essential in overcoming regulatory complexities and administrative challenges, streamlining project approvals, and enhancing risk management. For instance, traditional tender evaluations often take 4–6 weeks and involve multiple full-time reviewers; however, they provide inconsistent and subjective results. Meanwhile, leveraging a rules-based scoring system, enhanced by machine-learning insights, helps companies complete evaluations in 5-7 days with just two reviewers, saving up to 85% of costs, 70% of cycle times, and significantly fewer downstream variations.
This technological evolution not only supports the rapid pace of construction but also positions Saudi Arabia’s construction sector as a model for modernization and economic diversification in the region.
Key technologies that reshape the Saudi construction sector:
Advanced construction technologies are significantly improving both speed and sustainability in the Saudi construction sector in alignment with Vision 2030. Key technological advancements reshaping the industry include:
- 3D Printing: This technology accelerates construction timelines by enabling the rapid, cost-effective fabrication of complex building components from materials like concrete and polymers.
- Modular and prefabricated construction: Pre-assembled building sections are increasingly used in major giga-projects. This method enhances speed, quality, and cost control, crucial for meeting ambitious infrastructure deadlines.
- Building Information Modeling (BIM): BIM provides detailed digital 3D models that improve collaboration among architects, engineers, and contractors. Its growing use in projects contributes to reducing errors, streamlining workflows, and cutting costs.
- Artificial intelligence (AI) and machine learning: AI automates routine tasks, optimizes labor allocation, predicts project risks, and improves safety on construction sites, offering real-time insights that help avoid delays and cost overruns.
- Internet of Things (IoT) and Automation: IoT devices enable real-time monitoring of equipment, materials, and site conditions, enhancing resource management and safety. Meanwhile, automation reduces manual labor and repetitive tasks, allowing teams to focus on strategic aspects of projects.
- Green building technologies: Saudi Arabia is integrating solar panels, energy-efficient HVAC systems, and advanced insulation to reduce the environmental footprint of construction. These practices align with global standards and the Kingdom’s commitment to reducing carbon emissions.
To fully adopt innovative construction technologies in Saudi Arabia, several key regulatory changes are needed to create a flexible, supportive, and secure environment that fosters innovation while addressing emerging risks, including:
- Aligning regulations with technology development.
- Promoting flexibility and risk management.
- Enhancing collaboration among stakeholdersز
- Developing clear AI and data governance.
- Streamlining permitting and compliance processes.
The future of construction technology in Saudi Arabia
The future of construction technology in Saudi Arabia is set to be transformative, driven by ambitious national goals under Vision 2030 and massive investments exceeding $3 trillion aimed at economic diversification and urban modernization.
Degfa expected a widespread adoption of AI-assisted workflows, contracts linked to digital twins, live ESG and schedule tracking, blockchain-enabled supplier payments, and automated compliance checks for codes and Saudization. “With its combination of scale, urgency, and regulatory support, Saudi Arabia is on track to become a global leader in AI-powered construction,” he said.
Despite challenges related to regulatory complexity and administrative hurdles, the integration of advanced technologies is expected to redefine the Saudi construction sector by 2030, making it a global leader in innovative, sustainable, and efficient building practices. This technological revolution supports Saudi Arabia’s broader goals of economic diversification, job creation, and environmental stewardship, positioning construction as a cornerstone of the Kingdom’s future development.