What it means for the Kingdom's construction boom
The Kingdom of Saudi Arabia has been awarded the right to host the 2034 FIFA World Cup, a decision that will not only cause ripples in the sporting world, but will also have a significant effect on the economy of the country. The impact will be most immediately felt in the construction sector, as the country gears up to invest billions of dollars in infrastructure, jobs, and urban development over the next decade. This could change the face of Saudi Arabia, transforming it into a global hub for both tourism and business.
Mega Projects Ahead
Saudi Arabia is not starting from scratch in preparing to host the 2034 FIFA World Cup. In recent years, significant investments have been made to modernize the nation's infrastructure, providing a solid foundation for the upcoming mega-event.
King Salman International Airport in Riyadh, one of the largest airport projects in the region, is expected to serve millions of visitors during the World Cup. The airport can handle the influx of tourists and business travelers with a capacity of 30 million passengers per year, offering world-class amenities and advanced connectivity.
As well as the airport, the Riyadh Metro is slated to revolutionize transportation when it begins full operation in 2024. With its 176 kilometers of track, the $23 billion metro system provides reliable transportation to and from the World Cup, easing traffic congestion and offering significant congestion relief. The metro system’s modern design and cutting-edge technology are aligned with the Kingdom's broader goals of sustainable development, providing both local residents and international visitors with a smooth, efficient transportation experience.
According to Saudi Press Agency (SPA), the completion of these major projects underscores the Kingdom’s commitment to creating a world-class infrastructure that will not only serve the needs of the 2034 World Cup but also enhance Saudi Arabia’s position as a regional hub for business and tourism.
These developments are part of a broader strategy under Vision 2030, which aims to modernize and diversify the economy by improving the country’s urban and transportation infrastructure. Experts from the Saudi Economic Planning Agency predict that these projects, along with new stadiums and public spaces, will have a significant economic multiplier effect, with a projected 10-12% growth in the construction and real estate sectors leading up to 2034.
A Surge in Jobs and Investments
For the construction industry, the 2034 World Cup is a game-changer. Not only will it create direct jobs in building stadiums and roads, but it will also generate thousands of positions in the wider economy. According to consulting firm PwC, Saudi Arabia could see over 1.5 million visitors during the World Cup, providing an immediate $5 billion boost to tourism. That’s just the tip of the iceberg: the long-term economic benefits are expected to be massive.
In fact, construction and real estate analysts have forecasted a spike in growth for the country’s building sector. Saudi Arabia’s Vision 2030 goals aim to diversify the economy away from oil, and the World Cup is set to be a major catalyst for this change. According to McKinsey, the construction market could grow by 15-20% annually as a result of increased infrastructure spending. This surge will lead to greater demand for local suppliers, contractors, and skilled laborers, driving both economic and technological advancement.
Sustainability and Innovation in Focus
One of the standout features of Saudi Arabia’s World Cup preparations is the emphasis on sustainability. While the Kingdom plans to roll out some of the most advanced and high-tech sports venues in the world, it is equally committed to making them environmentally friendly.
Saudi Arabia has pledged that many of the stadiums will be built using green technologies, including renewable energy sources, water-efficient systems, and sustainable materials. These innovations are in line with the Saudi Green Initiative, which aims to reduce the country’s carbon footprint and make its infrastructure more eco-friendly. The investment in sustainable projects will likely add an additional $3 billion to the overall construction budget but will pay off in long-term savings, as well as set a global standard for future sporting events.
Long-Term Impact: Beyond 2034
The economic benefits of hosting the World Cup won’t end once the tournament concludes. The infrastructure built for the event will leave a lasting legacy, strengthening Saudi Arabia’s economy for years to come. Oxford Economics estimates that the long-term benefits, particularly in sectors like tourism and real estate, could surpass $30 billion in the decade following 2034.
With the new and improved transportation systems—such as expanded airports, high-speed railways, and better public transit options—the Kingdom is positioning itself to become more globally connected. This will not only make it easier for tourists to visit but will also open up the country to international business investments. Major cities like Riyadh, Jeddah, and Dammam are expected to see an uptick in property values, with experts predicting a 10-15% rise in real estate prices as the country becomes a more attractive destination for international investors.
Looking Ahead: A Nation in Transformation
In securing the FIFA 2034 World Cup, Saudi Arabia has more than just a sporting event in mind—it’s creating a legacy of economic growth, technological innovation, and global connectivity. For the construction industry, this represents an unparalleled opportunity, one that will not only drive immediate job creation but also lay the foundation for long-term growth.
As the Kingdom ramps up its preparations, it’s clear that Saudi Arabia is building much more than stadiums—it’s building its future. The World Cup is set to play a key role in the country’s efforts to diversify its economy and position itself as a global leader in infrastructure development. The next decade will see Saudi Arabia undergo a transformation, and the construction sector will be at the heart of it.
