Infrastructure market in Saudi Arabia

The Kingdom of Saudi Arabia (KSA) is experiencing an unprecedented increase in construction and urban mega projects that will reshape the future of the Kingdom and the region. Major public and private sector projects funded by the Public Investment Fund (PIF), the royal commissions responsible for the prime urban areas, the related ministries, and the private sector are driving many projects and opportunities. The KSA market is experiencing strong growth with projects valued at more than CAD 1.70 trillion under planning. 

Saudi Arabia is the largest economy in the Middle East and North Africa (MENA) region, the 19th largest in the world, and is the only G20 member country in MENA. In 2024 Canada exported CAD 2.8 billion worth of goods to Saudi Arabia. The country’s rapidly growing population is putting pressure on existing infrastructure, while commercial opportunities mainly focused on the infrastructure sector. Saudi Arabia has launched a CAD 1.04 trillion plan to double the size of the City of Riyadh in the next decade to transform it into an economic, social, and cultural hub for the region. This will create substantial opportunities for municipal infrastructure, such as water and transportation, and will  include the world’s largest city park and various sports and cultural facilities.

• Local presence in the market is very important for Canadian companies to understand and effectively operate their business in the region. The market requires a close relationship and deep commitment to the local market.
• Logistics cost makes Canada less competitive.
• Localization rules and increasing focus on where companies have their regional HQs and where they procure manpower and equipment can pose challenges.

Saudi Arabia has an oil-based economy with solid government control over key economic activities. Public-Private Partnerships (P3s) and privatization are central to Vision 2030, a broad set of socio-economic reforms intended to diversify, modernize and Saudize the economy. P3s are expected to deliver new infrastructure, better services and increased participation of the private sector. Overall infrastructure projects are being realized as P3 has increased from 2.5% in 2018 to 23.5% and 18.5% in 2023 and 2024 respectively. About 500 small, medium and large infrastructure projects are at different stages of development or implementation under the P3 model. 

Saudi Arabia is committed to improving its infrastructure. It is an attractive market because of its growing population and already represents the largest market in the MENA region. Saudi Arabia’s Vision 2030 represents a shift from a public sector-driven economy to one in which the private sector will be the main engine for economic growth and job creation.

Vision 2030 creates numerous opportunities for Canadian companies across varied industrial sectors, particularly in relation to:

• giga-projects (NEOM, Qiddiya, Amaala, Red Sea and Diriyah Gate)
• defense
• information and communications technologies (ICT)
• renewable energy
• mining and minerals
• healthcare
• education
• infrastructure
• entertainment
• tourism

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