MENA construction sector shows strong performance in H1 2023, led by Saudi Arabia, UAE, and Egypt

The MENA region's construction sector exhibited impressive performance in the first half of 2023, overcoming global economic challenges, according to JLL's latest Construction Market Intelligence report. Saudi Arabia ($44bn) and the UAE ($23bn) accounted for 67% of the total $101 billion worth of projects awarded in the first half of the year, marking an increase from the same period in the preceding year. Despite a drop in the value of awarded projects for H1 2023 compared to the previous year, Egypt, with its strong pipeline of upcoming projects, is predicted to see a 9% AAGR in its construction market between 2024 and 2027, driven by transportation, renewable energy, and residential sectors. Saudi Arabia's construction market size is expected to grow by 4% AAGR from 2024 to 2027 due to the ongoing economic diversification efforts outlined in Saudi Vision 2030. The estimated value of the project pipeline in the MENA region is over $3trn, with over 60% collectively owned by Egypt, Saudi Arabia, and the UAE. The region's impressive project pipeline, led primarily by countries like the UAE, Saudi Arabia, and Egypt, forecasts the construction sector to offer more than just stability; it is predicted to showcase enduring growth and continue to serve as the cornerstone of economic development and diversification in the MENA region.