Saudi Arabia has seized the lead in the construction sector in the Middle East and North Africa, accounting for 67 percent of total project value in the first half of 2023. According to the global property consultant's most recent construction market intelligence report, the MENA region awarded projects worth $101 billion in the first six months of the year, with Saudi Arabia contributing around $44 billion.
The UAE also contributed a big contribution, with $23 billion in projects granted. Both markets increased in comparison to the same period the previous year.
Laura Morgan, market intelligence lead for MEA at JLL, said: “While global interest rate hikes, high levels of inflation, and a sluggish trade recovery continued to impact the construction industry globally, the region stood out as an anomaly showcasing a sustained growth trajectory.”
Although Egypt saw a decline in the value of awarded projects during the same period, the country has maintained a robust pipeline of upcoming projects. Saudi Arabia awarded $5 billion worth of projects in the residential sector and $2 billion in leisure projects, as per arab news.
The report highlighted that “the combined estimated value of the project pipeline in the MENA region exceeded $3 trillion, with Egypt, KSA, and the UAE accounting for over 60 percent of this value.” The Kingdom controls around 35% of the market, with an estimated worth of $1.3 trillion, while Egypt and the UAE each control $500 billion.