Saudi Arabia Builders Joinery and Carpentry of Wood Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Saudi Arabia Builders Joinery and Carpentry of Wood Market Data

Saudi Arabia Builders Joinery and Carpentry of Wood Market Trends & Drivers

Customized and Aesthetically Pleasing Wooden Elements Are Trending

• The increasing disposable income in Saudi Arabia and rising standard of living of people are propelling the demand for highly customized and aesthetically pleasing wooden products in homes as well as commercial places. This growing trend drives innovation and product development in the builder joinery and carpentry market.
• Moreover, the increasing awareness of eco-friendly products has led to a preference for environment-friendly materials, including those made from timber.
• The upcoming construction projects, such as transportation networks, educational institutions, and healthcare settings, will require builder joinery and carpentry products for construction and interior furnishing.

Increasing Number of Construction Projects Is Key Driver

• The increasing number of construction projects in Saudi Arabia is a key driver for the market. Saudi Vision 2030 is a government initiative with the aim of economic, cultural, and social diversification. In this in initiative, the government is mobilizing every department to increase revenue from sectors other than oil & gas. For instance, in May 2023, the Saudi Ministry of Tourism signed a contract with Tasheed Contracting Company and InterContinental Hotels Group (IHG) for building 12 hotels across the country.
• In December 2023, Prince Fahd inaugurated 34 new development projects worth SAR 1 billion. Moreover, Saudi Arabia's National Housing Company launched a villa project with around 501 residential units in the city of Tabuk. This project will require lots of furniture, which, in turn, will create a massive need for wood and wood products. 

Environmental Regulations Are Major Challenges

• There are many disadvantages associated with the cutting down trees, such as deforestation, increase in carbon dioxide levels in the environment, and global warming. To protect people from these natural calamities, the government is prohibiting the cutting down of trees, which may hinder the growth of the market. In this regard, Saudi Arabia’s government has announced strict laws to fight environmental vandalism, with a penalty of around USD 8 million and 10 years in prison. The crimes covered include cutting down shrubs, herbs, and trees or moving their soil.
• Deforestation can lead to loss of biodiversity, damage to natural habitats, and erosion of the soil, thus contributing to global warming and climate change. Trees are widely felled to create space for agriculture and construction, as well as to yield timber.
• The fluctuating price of wood can retard the growth of the market. Prices fluctuate due to numerous factors, including a lower supply than the demand, changes in regulations, supply chain disruptions, and economic factors. Ultimately, this fluctuation in the price affects the cost of the end products made from wood.
• Wood faces competition with alternative materials, such as plastic, metals, and composite materials, especially in applications where durability, cost-effectiveness, and specific performance characteristics are prioritized. In such a scenario, carpenters need to differentiate their products and services to compete effectively.

Saudi Arabia Builders Joinery and Carpentry of Wood Market Segments

Type Insights

• Plywood accounts for the largest share, of 35%, in 2024. This is because plywood is widely used in furniture making, construction, and various other applications due to its high strength and relatively low cost. It is valued for its durability, stability, and ease of use in a variety of carpentry projects.
• Medium-density fireboard (MDF) holds a significant share, of 5.8%, in the market. This is due to the fast growth in the construction and carpentry industry and the advantages of MDF in terms of cost-effectiveness, ease of use, and versatility.

The types covered in the report include:

• Plywood (Largest Category)
• Particle Boards
• Engineered Woods (Fastest-Growing Category)
• MDF
• HDB
• Veneers
• Others

Application Insights

• The building category accounts for the largest share, of 55%, in 2024. This is because wood plays a prominent role in the construction of commercial and residential buildings and offers customization options for different purposes.
• The furniture category is expected to witness the highest CAGR during the forecast period, of 5.6%. This will be due to the increasing demand for wood for furniture in commercial and residential spaces, the number of which is swiftly increasing in the kingdom.

The following applications are included in the report:

• Furniture (Fastest-Growing Category)
• Building (Largest Category)
• Others

Al-Riyadh Is the Largest Shareholder

• Al-Riyadh holds the largest share of 35% in 2024. It is due to the increase in the demand for woo-related construction materials, such as doors, windows, and furniture.
• Meover, Eastern province is growing significantly in the Saudi Arabian builders joinery and carpentry of wood market. This is attributed to the fact to the extensive popularity of this region among tourists, which leads to an increase in the scale of construction.
• The province is home to major cities, such as Al Khobar, Dammam, and Jubail, which are hubs for construction activities in the country. Further, the presence of major industries and an increasing population are creating a high demand for builders' joinery and carpentry products, such as doors and furniture, in the province.

The provinces analyzed in this report include:

• Al-Riyadh (Largest Province)
• Makkah (Fastest-Growing Province)
• Al-Madinah
• Al-Qaseem
• Eastern Region
• Aseer
• Tabouk
• Hayel
• Northern Border
• Jazan
• Najran
• Al-Baha
• Al-Jouf

Market Nature – Fragmented

The Saudi Arabian builders joinery and carpentry of wood market is fragmented in nature with the presence of various small players and a few big ones. Most companies are engaged client wins, mergers & acquisitions, and others to gain a competitive edge. Moreover, companies are launching new designs to gain the attention of buyers.

Saudi Arabia Builders Joinery and Carpentry Industry News

• In October 2023, AlKuhaimi Group completed the wooden works in the Red Sea new airport ATT building.