Saudi Arabia is set to invest more than $175 billion annually on industrial and mega projects between 2025 and 2028, Bloomberg reported, citing a McKinsey & Co. report.
Spending is projected to reach a peak of $180 billion in 2026 and 2027, the report said, quoting the report.
Nearly $1.3 trillion worth of projects, including $500 billion NEOM and the Red Sea resorts, are in progress.
“The resources needed to fulfill the new construction ambitions of the Kingdom of Saudi Arabia over the next decade are colossal,” Bloomberg said, citing the report.
The expected annual contract awards are set to triple the historical average, growing from $50 billion to $150 billion, the report added.
Innovative methods such as industrialised construction and digital and analytical tools are likely to reduce completion time by almost 40 percent, lower overall costs and mitigate project risks, McKinsey noted.

The New York-based consulting giant estimated that the white-collar construction workforce in Saudi Arabia will double from 2021 levels before 2025, adding 150,000 engineering professionals.
Construction labour is anticipated to more than triple, adding millions of additional workers, Bloomberg reported quoting the report.

(Editing by Seban Scaria )