Key Saudi Arabia Construction Aggregate Market Drivers

Primary factors driving Saudi Arabia construction aggregate market are rapid growth in tourism sector and rise in the number of recreational projects. In Saudi Arabia, construction aggregates are majorly used in the construction of roads, dams, bridges, and airports as aggregates consumes it increases mechanical strength of concrete, helps in reducing void content and Additionally, on an average, for the construction of houses, around 400 tons of aggregates are needed, and 15,000 tons are required for constructing schools and hospitals. Since, Saudi Government is increasingly focussing on the construction of new houses, hospitals and schools, demand for construction aggregates is expected to increase in the country in coming few years. 

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Increasing urbanization and rise in private and public investments on infrastructure projects such as Jeddah Economic City, NEOM City, Riyadh Metro and King Fahd Medical City Expansion, are creating lucrative growth opportunities for the construction aggregates market in Saudi Arabia. However, high cost of transporting construction aggregates materials is hampering the growth of Saudi Arabia aggregate market.

Tourism industry in Saudi Arabia has experienced significant growth in recent years due to government’s efforts to boost the tourism industry for reducing the dependency from oil and gas sector, is accelerating the construction of hotels, restaurants and tourist destination, which in turn is boosting the growth of Saudi Arabia construction aggregates market

Construction aggregates are majorly used in commercial industrial, residential and infrastructure projects. Some of the latest infrastructure projects in Saudi Arabia involves the construction of road and railways. In addition, gravel is one of the most widely used construction aggregate. Gravel finds its application in the production of concrete pipes, bricks and blocks.

Recycled aggregates are becoming increasingly popular in Saudi Arabia aggregate market owing to its higher life-span and cost-effective features. These aggregates are made of materials like crushed stone, recycled brick and recycled asphalts are widely used in home refurbishments, roadworks, and earthworks.

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