Modular and Off-Site Construction: The Next Normal in Saudi Arabia
Modular and Off-Site Construction: The Next Normal in Saudi Arabia
Saudi Arabia’s built environment is undergoing a dramatic transformation. With the ambitious goals of Vision 2030 demanding rapid delivery of new cities, tourism destinations, industrial complexes and housing, the construction industry is being reshaped by urgency. In this context, modular and off-site construction are no longer niche options; they are becoming established, strategic delivery models across large-scale developments.
From ultra-modern projects such as NEOM to mass housing initiatives, the Kingdom is embracing prefabrication in ways that were previously uncommon. The implications for architectural and engineering (A/E) consultancies are significant. Firms must evolve their workflows, capabilities and value propositions to remain competitive in this new delivery paradigm.
Why Modular Construction is Gaining Momentum
Modular or off-site construction allows significant portions of a building to be manufactured in factory conditions while site work proceeds in parallel. This provides major advantages for projects operating under Saudi Arabia’s fast-track environment.
Speed: With modules built concurrently while foundational and infrastructure works happen on site, project timelines are dramatically shortened. Controlled factory fabrication also minimises weather-related delays and inefficiencies. In many cases, modular construction can reduce build time by 30 to 50 per cent compared with traditional methods.
Quality and Precision: Factory manufacturing offers consistent conditions and standardised production. This ensures tighter quality control, reduced rework, and greater precision during installation. For projects where deadlines are non-negotiable, such consistency is invaluable.
Waste Reduction and Sustainability: Off-site manufacturing optimises material use and improves waste management, significantly reducing landfill impact and carbon emissions. This aligns directly with the Kingdom’s sustainability commitments under Vision 2030.
Logistics and Safety: Controlled factory environments also reduce on-site risks, improve safety outcomes and streamline logistics for remote or challenging project locations.
Real-World Examples from Saudi Arabia
Several major developments in the Kingdom demonstrate how modular construction is being adopted at scale.
- At NEOM, the Swedish firm SIBS was awarded a contract to deliver 1,300 apartments across 22 buildings, equivalent to approximately 100,000 square metres of gross floor area, using modular technology.
- SIBS also secured a separate contract to deliver 2,174 apartments across 35 buildings within NEOM, further proving the scalability of modular methods for residential and mixed-use development.
- Gulf Development International (GDI) has announced plans for a 1.4 million square metre modular assembly plant within NEOM, with capacity to produce up to 12,500 units per year. This represents one of the largest volumetric modular facilities in the world.
- The prefabricated buildings market in Saudi Arabia was valued at around USD 1.82 billion in 2024 and is expected to reach USD 2.58 billion by 2033, driven by housing demand, giga-project activity and sustainable construction mandates.
- In northern Riyadh, the Sedra housing development includes a 200,000 square metre modular manufacturing plant dedicated to producing high-quality housing components efficiently and consistently.
These examples underline a clear trend: modular construction in Saudi Arabia is not limited to temporary or small-scale projects. It is increasingly used for residential, hospitality, healthcare and commercial developments, redefining how the Kingdom delivers at speed.
What This Means for A/E Consultants in Saudi Arabia
For architectural and engineering consultancies such as HYKAL, the rise of modular construction represents both opportunity and evolution.
Adapting Design Workflows
Designing for modular construction requires early consideration of manufacturing tolerances, transportation logistics and assembly sequences. Architectural layouts, structural systems and MEP designs must align with factory capabilities from the outset. Early collaboration with manufacturing partners reduces costly design revisions later in the process.
Integrated Delivery and Collaboration
Traditional separations between design consultants, fabricators and contractors are being replaced by integrated delivery models. Early contractor involvement, supplier coordination and BIM-enabled workflows are now essential to ensure compatibility between design intent and manufactured outcomes.
Close collaboration across disciplines is critical, as structural, façade, MEP and logistics specialists must all coordinate with factory schedules and site assembly plans.
Digital Tools and Data-Driven Coordination
Advanced digital tools such as 4D and 5D BIM, digital twins and factory simulation technologies are enabling greater precision and coordination. Consultants must adopt these tools to connect design data with manufacturing and construction processes. Real-time information from factory production, transport and site installation provides clients with improved transparency on progress and risk.
Regulatory and Authority Coordination
While modular projects must still meet the same regulatory standards as traditional builds, the approval process can differ. Consultants with deep knowledge of Saudi regulations, authority submissions and local code requirements play a vital role in ensuring modular projects remain compliant and on schedule.
Navigating aspects such as factory certification, transport permits and modular inspection processes requires both technical expertise and local insight.
Shifting the Value Proposition
In this new environment, consultancies are expected to deliver more than design excellence. They must offer design-for-manufacture capability, logistics foresight, digital integration and quality assurance throughout the supply chain. Those who position themselves as strategic partners in modular delivery will be at the forefront of Saudi Arabia’s evolving construction landscape.
Balancing Speed with Quality and Sustainability
While modular construction accelerates delivery, maintaining quality and sustainability remains paramount. Consultants play a crucial role in ensuring factory-built modules meet performance standards for durability, energy efficiency, fire safety and comfort.
Effective planning also mitigates potential risks such as delayed factory output or site readiness. Aligning module fabrication schedules with site progress is essential to avoid idle time or logistical congestion.
Sustainability extends beyond waste reduction. The use of low-carbon materials, recyclable steel, and renewable energy sources in modular production further supports Vision 2030’s environmental objectives.
Flexibility is another key consideration. Modular designs should anticipate future expansion, adaptation or reuse. By incorporating flexible systems, consultants can help clients achieve longevity and long-term value in their developments.
Building Smarter for Vision 2030
Modular and off-site construction are redefining the standards of speed, quality and sustainability in Saudi Arabia’s built environment. For A/E professionals, success now depends on integrating design intelligence with manufacturing and delivery insight.
As the Kingdom continues to execute giga-projects and large-scale developments, firms capable of bridging design and production will lead the way.
At HYKAL, we are committed to helping our clients build smarter, faster and more sustainably, supporting the realisation of Vision 2030’s ambitions for a modern, efficient and future-ready built environment.
