Saudi Housing Plan - The Golden Gateway for Chinese Enterprises

Since the launch of the "Housing Plan" in 2018, the Saudi government plans to increase the proportion of self owned housing from 60% to 70% between 2021 and 2030. Recently, the Saudi Arabian Ministry of Municipal and Rural Affairs announced that it will spend $43 billion to build 240000 housing units. The total amount of cooperation projects between Chinese enterprises and Saudi Arabia in the housing sector has exceeded 3 billion Saudi riyals, and the Saudi housing plan has paved a golden path for Chinese enterprises

The estimated size of the Saudi Arabian construction market in 2024 is $70.33 billion, and it is expected to reach $91.36 billion by 2029, with a compound annual growth rate of 5.37% during the forecast period (2024-2029).

The advancement of Saudi Arabia's housing plan has led to a significant increase in demand for building materials. It is expected that Saudi Arabia's demand for building raw materials such as cement, steel, and wood will continue to grow in the coming years. In addition, supplies directly related to construction, such as doors, windows, appliances, etc., will also find a huge market in this plan.

It is expected that by 2028, the market size of doors, windows, and exterior walls in Saudi Arabia will reach 1.73 billion US dollars, with a compound annual growth rate of 3.4%.

It is expected that the Saudi home appliance market will reach $4.03 billion by 2024 and $4.81 billion by 2029, with a compound annual growth rate of 3.61% during the forecast period (2024-2029).

In addition to housing construction, the booming tourism industry in Saudi Arabia has also brought new growth momentum to the construction industry. By 2030, up to 315000 hotel rooms will be developed in the surrounding areas of Saudi Arabia, which also brings new growth opportunities for downstream enterprises in the construction market.

Chinese enterprises have rich experience and advantages in tourism architecture, hotel design and other fields, and are expected to carry out more in-depth cooperation with Saudi Arabia in this field.

From building materials to home decoration, from technological innovation to financial services, the role of Chinese enterprises in Saudi Arabia's construction industry is becoming increasingly important. In the future, with the deepening of Saudi Arabia's housing plan and the sustained development of the tourism industry, Chinese enterprises will gain more opportunities in Saudi Arabia.