Saudi Arabia is undergoing a transformative shift in its built environment as part of its ambitious Vision 2030 strategy. With a strong emphasis on sustainability, decarbonization, and energy efficiency, the Kingdom is positioning itself as a regional leader in retrofitting, green construction, and sustainable urban development.
Over the last few years, Saudi Arabia has committed to achieving net-zero emissions by 2060, backed by strong policy action and investments in energy transition. The launch of the Saudi Green Initiative and broader sustainability targets have accelerated the focus on retrofitting existing buildings, improving operational efficiency, and adopting smart technologies across the public and private sectors.
The National Energy Services Company (Tarshid), backed by the Public Investment Fund (PIF), has been at the forefront of retrofit projects. Tarshid is spearheading the energy efficiency transformation across public and private sector, which includes ministries, schools, hospitals, airports, and more. In collaboration with ESCOs and private players, Tarshid has launched building and streetlighting retrofit programs across the Kingdom with an investment pipeline estimated at over SAR 1.8 billion (USD 480 million). These projects are expected to deliver gigawatt-hours of energy savings and significantly reduce greenhouse gas emissions.
In 2025 and beyond, Saudi Arabia will witness the scaling of several large-scale sustainable development initiatives. The Public Investment Fund is driving giga-projects like NEOM, The Line, Trojena, Qiddiya, and Diriyah Gate, all of which incorporate cutting-edge technologies and energy-efficient infrastructure. Many of these developments feature retrofitting programs alongside new construction, including upgrades to heritage buildings, integration of solar PV systems, smart water management, and the use of low-carbon materials.
The demand for high-performance, energy-efficient buildings is rising rapidly, especially in the commercial, hospitality, education, and healthcare sectors. According to market data, the smart building market in Saudi Arabia is projected to grow at a CAGR of over 10% through 2030, with significant traction in areas like building automation, IoT integration, and sustainable design systems.
In addition to retrofitting, there is a parallel drive to future-proof new buildings. The Saudi Building Code and Mostadam rating system are being actively enforced to ensure all new developments align with national energy and sustainability standards. There is also increasing emphasis on embodied carbon, passive design, and net-zero-ready structures.
The 9th RetrofitTech and Sustainable Buildings Saudi Arabia Summit promises to be a landmark gathering of decision-makers, innovators, and influencers in the Kingdom’s built environment. Scheduled for 20 - 21 October 2025, the summit will cover a wide range of topics including building performance upgrades, green financing, digital retrofits, sustainable master planning, and the evolution of ESCO markets.
