Saudi Arabian real estate developer Al-Majdiah has awarded construction contracts worth SR454m ($121m) for housing projects in Riyadh and Jeddah. The contracts were awarded to the local firm Tatweej Contracting.

The two projects are part of Al-Majdiah’s portfolio in collaboration with the state-backed National Housing Company (NHC).

In an official statement published on the Saudi stock exchange Tadawul, Al-Majdiah said the contract value for the Adeem Al-Fursan project in Riyadh is SR298m ($80m).

The project comprises the construction of 540 villas and townhouses.

The Al-Fursan development in northeast Riyadh spans over 35 million square metres (sq m) and includes over 50,000 residential units. The contract value for the Khayala 1 project in Jeddah is SR155m ($41m). The project includes the construction of 528 residential units.

The Khayala development is located in north Jeddah and spans nearly 1.6 million sq m. It includes 3,680 residential units. The contracts have a scheduled completion period of 36 months.

UK-based analytics firm GlobalData expects the construction industry in Saudi Arabia to grow by 4% in real terms in 2025, before recording an annual average growth of 5.4% from 2026 to 2029.

The industry’s output in 2025 will be supported by allocations as part of the kingdom’s 2025 budget, which includes a total expenditure of SR1.3tn ($342.7bn) for 2025.

The industry’s output over the remainder of the forecast period will be supported by investments in transport, electricity, housing and water infrastructure projects.

The residential construction sector is expected to grow by 3.8% in real terms in 2025 before recording an annual average growth rate of 6.4% over the remainder of the forecast period, supported by public and private sector investments in the residential sector to address the national housing deficit.