Riyadh - Sharikat Mubasher: Saudi Arabia is expected to triple spending on industrial and mega projects to exceed $175 billion annually from 2025 and 2028, McKinsey & Company, the global management consulting firm, revealed in a report.

The consulting firm forecasted the Kingdom’s spending on such projects to peak at as much as $180 billion in 2026 and 2027.

The report stated that the ongoing projects in the Kingdom, including the high-tech new city of Neom and the Red Sea resorts, are estimated at $1.3 trillion.

It further highlighted that these giga projects came as part of Saudi Arabia’s strategy to diversify its economy and transform the Kingdom into a global tourism destination.

Saudi Arabia’s “plans are of sufficient scale that industrialized construction could prove more economical than traditional in-situ methods — a crucial tipping point that could make the country a construction manufacturing hub for the region and even beyond,” the report noted.

It should be mentioned that Saudi Arabia has awarded construction contracts worth $250 billion since 2016.