9.8 C
Wednesday, April 24, 2024
HomeEconomyEarth-Moving Equipment Demand Booms thanks to Saudi’s Vision 2030

Earth-Moving Equipment Demand Booms thanks to Saudi’s Vision 2030

The Saudi Arabia earth-moving equipment market is expected to grow at a CAGR of 5.47% to 2029 thanks to its economic diversification program in renewable energies, gold, major projects and logistics.

- Advertisement -spot_img

The Saudi Arabia earth-moving equipment market is expected to grow at a CAGR of 5.47% to 2029 thanks to its economic diversification program in renewable energies, gold, major projects and logistics.

Earthmoving equipment accounted for the largest market share of 47.7% in the Saudi construction equipment market in 2022. Excavators in the earthmoving segment accounted for the largest share.

Due to increased investments across major infrastructure and resources industries, transportation and other waste management projects in 2023, demand for hydraulic excavators continue to rise.


The Saudi Government is proactively investing in transforming the country into a global logistics hub as part of its long-term growth diversification strategy. Saudi Arabia has made significant budgetary allocations to develop transportation infrastructure such as airports, railroads, highways, and ports.

In July 2021, the Saudi Ports Authority invited private sector players to build eight new terminals (in Jeddah Islamic Port, King Abdulaziz Port in Dammam, Ras Al-Khair Port, Jizan Port, Yanbu Commercial Port and King Fahad Industrial.

Gold Mining

The region is also witnessing a surge in investment in the gold mining industry, and the government aims to increase gold and phosphate production. Investment is directed toward the construction of new gold extraction mines such as the Ad Duwayhi gold mine operated by Saudi Arabian Mining Co. (Ma’aden) which is expected to produce approximately 180,000 ounces of gold per year, with 1.9 million ounces in reserves as of 31 December 2023.

A whopping 125 km potential new gold reserves have been identified based on positive exploration results, with Saudi expected to become a major gold belt. For example, exploration near Mansoura and Masara reveals abundant resources.  Deveoped by Ma’aden, this project is expected to produce 250,000 ounces of gold annually, contributing to a significant increase in Saudi Arabia’s gold production.

Given these positive indicators, growth in the mining industry is expected to drive the sale of large excavators too.

Waste Management

Waste management projects in 2023 drove demand for loaders, excavators, and dump trucks in the country too, as part of its plan to eliminate 82% of waste generated by 2030.

Infrastructure Projects

Saudi’s ‘Vision 2030’ plans to build over 555,000 residential units, over 275,000 hotels, 4.3 million square meters of retail space, and over 6.1 million square meters of office space by 2030. Saudi Arabia is building a new smart city, ‘NEOM,’ valued at USD 500 billion.

The mega project will include several cities, resorts, and other projects. NEOM will build around an area of 25,600 sq. km. in north-western Saudi Arabia, and it will consist of ten projects built across four regions – the Line, Oxagon, Trojena, and Sindalah. The Line includes a 170-km linear city, which expects to encompass 9 million people.

The city will also entail two parallel 500-meter-high skyscrapers. Similarly, another region, Oxagon, will consist of an octagon-shaped port city, which will be constructed on the Red Sea.

In December 2022, Kanoo Machinery received an order of 10 XCMG XE490D excavators. These hydraulic excavators were delivered in the Tabuk region, to help construction of the NEOM project.

In May 2022, Hyundai Doosan Infracore earned orders for 75 mid to large excavators from Saudi Arabia. These machines are also being used at the construction site of Neom City.

Renewable Energy Projects

In line with its goal to achieve net zero emissions by 2060, the Saudi Government launched several renewable energy projects nationwide under its National Renewable Energy Program (NREP).

In 2024, it announced ten renewable energy projects. The country aimed to enhance the power generated from solar and wind sources and reduce the dependency on fossil fuel and oil for electricity generation.

Some of these projects include the AI Masa’a Solar Project located in the Hail province which aims to generate 1 GW of solar power.

The Al Henakiyah 2 Solar Project, with a capacity of 400 MW, will be built in the Madinah province.

The Rabigh 2 Solar Project located in the Makkah province, targets a capacity of 300 MW.

The remaining seven projects, totaling 5.3 GW, will contribute to both solar and wind energy as part of the ongoing National Renewable Energy Program.

These ten renewable energy projects’ total power generation capacity will be 7 GW.

Shift Toward Green Hydrogen Fuel-Based Equipment

In 2021, new projects in the energy sector included renewables and hydrogen fuel such as the USD 5 billion Helios Green Fuels hydrogen project.

The country is also building one of the world’s largest green hydrogen projects, a joint venture among NEOM, Air Products, and ACWA Power. The project will combine 4 GW of solar and wind energy to generate 650 tons of hydrogen daily. The project is scheduled to be operational in 2025.


The Saudi Arabia construction equipment market is presently facing a labor force shortage. To overcome this challenge, the local construction industry often relies heavily on foreign contracted labour. It will continue to remain a major challenge as these industries are highly labour intensive.

In non-oil activities, the second quarter of 2023 saw its GDP amount to SAR 970 billion. Crude petroleum and natural gas activities achieved the highest contribution to GDP, accounting for 25.0%.

The economy of Saudi Arabia is still heavily dependent on its hydrocarbon industry. Saudi Arabia earns 80% of its export income from oil, making around 40% of Saudi gross domestic products in 2022. The rise in oil prices in 2022, particularly during the first half (when prices exceeded USD 100 per barrel after the Russian invasion of Ukraine), was a major contributor.

Notes from the Editor: This economic outlook was provided courtesy of researchandmarkets.com.

- Advertisement -spot_img
- Advertisement -spot_img

Stay Connected


Must Read

- Advertisement -spot_img

Related News

- Advertisement -spot_img


Please enter your comment!
Please enter your name here