MGB Alameriah Contracting Company, a local subsidiary of Malaysia’s MGB Group, has won a SR350m ($93m) construction contract to build a residential project in Medina.

The contract was awarded by local firm Beetah Real Estate. The project comprises the construction of 440 residential apartments. The construction works will commence from March next year. The project is expected to be completed by 2027.

UK 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% in 2026-29.

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

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.