Why Construction Technology (ConTech) Firms Are Moving to Saudi Arabia
Saudi Arabia is expected to become the world's biggest construction market by 2028. The speed at which the sector is moving makes the Kingdom an increasingly attractive destination for global innovators looking to tap into its technology ecosystem.
The ConTech sector is quietly becoming an industry of its own, thanks to continued policy support and growing public awareness of the ConTech and PropTech industries, driving global firms to actively pursue business setup in Saudi Arabia.
A clear indicator of Saudi Arabia's leading position is its ability to host a new wave of global industry events—including the Construction Technology ConFex, held annually in Riyadh. Another key highlight is the launch of the Saudi ConTech Accelerator, which is set to debut its first program in early 2026, targeting high-potential startups across ConTech and PropTech.
Below, we explore the key reasons why the Kingdom is so compelling for global firms, along with the local dynamics and actionable insights you'll need before making the move.
The Construction Surge Driving ConTech Demand in Saudi Arabia
A $1 Trillion Infrastructure Pipeline
Saudi Arabia is in the midst of a massive, multi-year infrastructure investment drive that sits at the heart of Vision 2030. The Kingdom has committed to investing $1 trillion in infrastructure by 2030, with the private sector expected to finance roughly 40% of that total.
As mega-infrastructure projects unfold nationwide—spanning highways, airports, smart cities, power plants, water systems, and large-scale real estate developments—Saudi Arabia is already emerging as an early adopter of construction technologies, accelerating market expansion across the board.
Hotel Construction Growth
The hospitality sector adds another significant layer to Saudi Arabia's construction pipeline. The country is experiencing a remarkable surge, with domestic and international arrivals increasing year on year. These evolving trends are driving hospitality construction, unlocking a massive surge in hotel room supply.
A recent report by Knight Frank indicates that around 358,000 hotel rooms are planned across the Kingdom, with around 94,000 keys either under construction or at an advanced stage of planning. With demand showing no signs of slowing, hospitality construction represents a direct entry point for ConTech companies offering smart infrastructure, building management solutions, and automated energy management.
Mega-Events Creating Once-in-a-Generation Demand
With a full calendar of events year-round, Saudi Arabia's construction technology needs are set to grow astronomically. Events like Riyadh Expo 2030 and the FIFA World Cup 2034 underpin sustained demand for construction and technology across the Kingdom.
Together, these fixed-deadline commitments intensify pressure to deliver efficiently and generate demand for technology-driven construction solutions well into the 2030s. For global ConTech firms, the combination of scale, urgency, and institutional backing represents a rare, compelling investment opportunity.
Key Drivers of International Investments in Saudi Contech Industry
Safety and Sustainability Leading ConTech Adoption
With tens of thousands of workers deployed across complex, fast-moving construction sites, the pressure to manage risk and ensure worker well-being has never been greater. Many developers and public sector entities are turning to ConTech firms to address health and safety management and quality assurance, as well as sustainability and environmental compliance.
ConTech tools are recognized for their potential to help companies embed eco-friendly practices, aligning progress with sustainability goals and the Saudi Green Building Code.
As the number of large-scale projects grows in Saudi Arabia, demand for green construction technologies is expected to accelerate the market further.
Continued Growth and Localization of IT Infrastructure
The Kingdom is currently home to the biggest digital economy in the region, with a cumulative value exceeding $140 billion. Its ongoing push toward localizing digital infrastructure has made it the preferred destination for IT companies, including ConTechs.
Therefore, global enterprises delivering tailored digital solutions for the construction industry can tap into abundant opportunities within Saudi’s expanding technology sector, build their in-country capabilities, and benefit from an on-the-ground presence in one of the region's most dynamic markets.
What Setting Up in Saudi Arabia Looks Like for ConTech Companies
The Advantage of Being on the Ground
For international construction technology companies, establishing a local entity in Saudi Arabia is increasingly a strategic necessity. Many government and semi-government clients require a registered Saudi entity to participate in tenders — without one, companies are excluded from some of the most significant procurement opportunities in the market.
Beyond compliance, a local presence enables companies to hire Saudi talent, contribute to the local economy, and position themselves as genuine participants in the Kingdom's development, rather than simply vendors operating from abroad.
At AstroLabs, we've assisted several firms in formalizing their presence in Saudi Arabia, including leading ConTech pioneers such as Mighty Buildings, CO2Wall, and 360Zero, among others.
Market Expansion Scenarios
In terms of licensing, the setup process varies depending on business activity. Equipment rental and technology services typically fall under a service license, while some activities may require industrial or professional classifications.
For early-stage businesses, the Ministry of Investment's Entrepreneur License offers a more accessible and cost-effective entry point, with reduced renewal fees for the first five years.
In the coming years, Saudi is positioned to become a global ConTech export hub. The scale and complexity of projects underway provide exceptional conditions for global companies, making now the right time to establish a long-term presence in the Kingdom.