Saudi Arabian construction, Nigerian airports, and Kenyan homes

Saudi Arabia has initiated construction projects worth more than $1.25 trillion, positioning itself to be the world’s largest construction market. Real estate consultancy Knight Frank LLP forecasts that the country’s total construction output will reach $181.5 billion by the end of 2028, marking a growth of nearly 30% from 2023. The kingdom is modernizing and diversifying its oil-dependent economy in anticipation of population growth and increased tourist activity. However, low oil prices have impacted government revenues, prompting a reassessment of plans and the search for new financing strategies. A review of projects is ongoing, and some are expected to be delayed or scaled back.

Nigeria currently has 33 airports, 13 runways more, four military airfields, and 128 helipads, with new airports continually under construction. However, air travel decreased by about 280,000 passengers last year compared to 2022. Additionally, according to the Nigerian Civil Aviation Authority, just three airports accounted for 92% of all passenger travel in 2022. Some experts suggest that the push to build more airports is driven more by political prestige than economics.

Kenya is facing a significant shortage of affordable housing, with the World Bank estimating a deficit of 2 million homes. In response, the government aims to construct 250,000 homes annually, a plan launched in 2022. However, there is insufficient data available regarding the progress of that initiative. The situation is particularly dire in urban areas, where a third of Kenya’s population resides, with 70% of them living in informal settlements lacking basic infrastructure.