Saudi Arabia’s construction sector is undergoing an unprecedented transformation, with over 5,200 projects currently underway, including Diriyah, Qiddiya, and NEOM. 

 

As these developments take shape, demand for high-quality natural stone and marble is rising in tandem, playing a crucial role in shaping the kingdom’s architectural vision. The success of these projects depends not only on the availability of materials but also on the efficiency, sustainability, and cost-effectiveness of their procurement, writes  Wajdi Marroun, Managing Director, Versatile International.

 

A recent Modor Intelligence report projects that Saudi Arabia’s marble and stone market will reach $1.09 billion by 2027. This presents a major opportunity - not only to attract foreign investment but also to strengthen the country’s position as a global leader in construction. While the outlook is promising, industry professionals must navigate key procurement challenges to ensure that cost, quality, and sustainability remain balanced.

 

Evolution of procurement 

Procurement has long been a critical factor in construction success. An estimated 30 percent of overall construction globally is rework, leading to project delays, budget overruns, and material shortages - challenges that can inflate budgets. According to an industry survey commissioned by Versatile International, the Middle East's first fully integrated stone project management consultancy, 42% of companies surveyed reported allocating 5-10% of their budgets for contingencies, which can amount to $50 million set aside for every $500 million project. 

 

As Saudi Arabia’s construction sector grows, developers are increasingly turning to AI and digital transformation to improve procurement efficiency and reduce risks. The survey found that AI is considered the leading trend shaping Saudi’s construction sector, reflecting a broader shift toward data-driven decision-making. Developers are leveraging AI-driven procurement platforms to streamline supply chains, predict material demand, and minimise waste. In large-scale projects like NEOM, AI functions as an operating system, optimising logistics in real-time to ensure materials arrive on schedule and within budget.

 

Beyond AI, sustainability is emerging as a key priority in procurement decisions. With rising pressure to adopt green building practices, developers must weigh environmental impact alongside cost and delivery times. One of the most effective ways to achieve this is through local sourcing, which significantly reduces carbon emissions from transportation while accelerating project timelines. Natural stone is particularly well-suited for this approach - it is quarried, cut, and installed through a straightforward process, making it one of the most sustainable choices for large-scale developments.

 

Addressing procurement challenges

According to the Q3 2024 Global Construction Monitor by RICS, Saudi Arabia’s construction market - along with the UAE - continues to outperform global trends. However, procurement and supply chain issues remain among the most pressing challenges.

 

One of the most significant concerns is delivery delays. Research has found that Saudi construction professionals rank supply chain disruptions as their biggest challenge. These delays not only extend project timelines but also impact profit margins, creating a cascading effect on large-scale builds. To counter this, 44% of professionals in Saudi Arabia prioritize local sourcing as a key strategy to mitigate these risks.

 

Another challenge is ensuring that materials meet both durability and aesthetic standards while remaining cost-effective. Many developers are addressing this by sourcing directly from quarries, either locally or internationally - a strategy cited by 53% of Saudi professionals as a cost-effective solution, particularly for large-scale projects. Direct sourcing helps ensure quality control while keeping costs competitive, which is essential for developments that require large quantities of natural stone. 

 

When looking to address these challenges, engaging a fully-integrated stone project management consultant can eliminate risk from the natural stone construction process. Through careful planning and early-stage decision making, unnecessary rework can be avoided leading to cost and time efficiency and smooth project execution. 

 

For some of the destination-scale giga projects currently developing in the kingdom, the value of implementing a specialist stone consultant can also address some of the environmental concerns with quarrying natural stone, eliminating further potential pitfalls to these projects. 

 

A strategic path forward

As Saudi Arabia’s construction boom continues, the demand for high-quality stone and marble will only intensify. To stay ahead of potential challenges, industry professionals must adopt strategic procurement approaches that enhance efficiency, minimise waste, and optimise supply chains.

By embracing AI-driven procurement solutions, developers can improve project predictability and reduce material waste. Meanwhile, prioritising local sourcing will not only mitigate supply chain disruptions but also contribute to Saudi Arabia’s long-term sustainability goals.

 

With a smarter, more resilient approach to procurement, the kingdom has the potential to set a new global benchmark in sustainable construction, reinforcing its position as a leader in architectural innovation and large-scale infrastructure development. -TradeArabia News Service