The Saudi Procurement Market: Opportunities and Trends
Saudi Arabia's procurement market is undergoing an unprecedented qualitative transformation, driven by massive investments, strategic projects, and the targets of Vision 2030 — which have reshaped the business environment and expanded the scope of opportunities for both national and international companies. As government spending grows and infrastructure, energy, industry, and services projects expand, procurement has become one of the primary drivers of economic growth and private sector participation in development.
In this article, we highlight the key features of the Saudi procurement market, helping companies understand the scale of available opportunities and compete effectively.
First: Government Procurement
Government procurement is the primary driver of the Saudi economy. According to official data, total approved government expenditures for 2025 reached approximately SAR 1.285 trillion, covering spending on projects, operations, and government procurement.
Distributed across key sectors including:
• Military and Security Sector
• Education: SAR 202 billion
• Municipal Services and Infrastructure
Second: Semi-Government Companies
Semi-government companies drive a large portion of industrial and logistics procurement, led by Saudi Aramco.
• Saudi Aramco: Capital expenditures (CAPEX) for 2024 reached approximately SAR 188.9 billion ($50.4 billion). Aramco enforces strict local content requirements through its "Iktva" program, achieving a 70% local content ratio in its procurement — contributing more than $280 billion to GDP since its launch.
• SABIC: Recorded revenues of SAR 139.98 billion in 2024, with annual capital expenditures ranging between SAR 15 to 18 billion.
Third: PIF Projects and Giga-Projects
Assets under management at the Public Investment Fund (PIF) grew by 19%, reaching SAR 3.42 trillion ($913 billion) by end of 2024. Giga-projects are a key driver of construction and equipment procurement.
• NEOM: With an estimated budget of $500 billion, construction contracts worth over $24 billion have been awarded through late 2025.
• Diriyah Company: Has awarded construction contracts worth approximately $27 billion since early 2024.
• Roshn: Signed contracts exceeding SAR 19 billion during 2024, with Saudi companies winning 71% of them.
Fourth: Banking and Financial Services
The financial sector has seen significant growth, with total banking sector assets reaching approximately SAR 4.96 trillion ($1.33 trillion) by end of 2025. Spending in this sector is heavily focused on technology infrastructure, cybersecurity, and software licenses. Key buyers include Saudi National Bank (SNB), Al Rajhi Bank, Riyad Bank, and Saudi First Bank.
Fifth: Healthcare
The healthcare sector receives significant government attention, with SAR 258 billion allocated in the 2025 budget (including social development). Total healthcare spending (excluding capital formation) reached approximately SAR 169.55 billion.
Medical procurement is led by the National Unified Procurement Company for Medicines, Devices and Medical Supplies (NUPCO), which manages multi-billion riyal competitions annually to supply medicines and medical equipment to government hospitals.
Sixth: Telecommunications and Information Technology
The Saudi telecom and IT market is estimated at approximately SAR 180 billion ($48 billion). The value of new government technology contracts in 2024 reached around SAR 38 billion. At the corporate level, capital expenditure by major telecom companies in 2024 reached approximately SAR 16 billion for expanding 5G networks and fiber optics:
• STC Group: SAR 11.93 billion
• Mobily: SAR 2.57 billion
• Zain: SAR 1.5 billion
Seventh: Real Estate and Construction
The contracting sector is experiencing its golden age. Saudi Arabia set a record by awarding project contracts worth $148 billion during 2024 — the highest in Gulf history. Key buyers and developers include Roshn Group, The New Murabba Development Company, Qiddiya Investment Company, and major contractors such as Nesma, Al-Saif, and Bin Laden Group.
Eighth: Energy and Industry
• Saudi Electricity Company (SEC): Recorded record capital expenditure of SAR 60 billion in 2024 (up 44% from 2023), directed at expanding energy infrastructure and smart grids.
• Ma'aden: Announced a massive capital expenditure program worth $110 billion over the next decade. Mining exploration spending alone reached approximately SAR 1.05 billion in 2024.
• ACWA Power: Manages an asset portfolio with a total investment cost of $97.2 billion, and leads major procurement for renewable energy and water desalination projects.
In light of the accelerating growth in Saudi Arabia's procurement market, company readiness becomes a decisive factor in capturing available opportunities. At Eda2at, we are proud to help companies qualify, enhance their readiness, and compete effectively in projects and tenders that support their growth and expansion.