An Integrated Structural Equation Modeling and Analytic Hierarchy Process Approach to Prioritize Investment in the Construction Industry to Achieve Sustainable Development in Saudi Arabia

The construction industry is a major contributor to socio economic development and an extensive user of energy and natural resources; therefore, its engagement is fundamental to sustainability. This research prioritizes investment spending in the construction sector in Saudi Arabia to meet sustainable development. This research uses integrated structure equation modeling (SEM) and analytical hierarchy process (AHP) as a solution approach for prioritizing the alternatives for the decision maker. Experts and decision makers have been interviewed to define the main and subcriteria and the corresponding pairwise comparison matrix. Economic, environmental, and social (EES) criteria were considered, including 8, 8, and 5 subcriteria, respectively. SmartPLS applying the partial least squares structural equation modeling (PLS-SEM) method and expert choice for AHP were used to rank investment in the construction sector in Saudi Arabia in order to attain sustainable development. The SEM results revealed that the influencing factors are 5 economic, 5 environmental, and 3 social subcriteria in sustainable development. The results indicated that building projects ranked first at 13.9%, followed by water and sanitation activities at 11.2%, and by electrical works business at 10.8%. Road work ranked fourth at 8.6%, accompanied by mechanical activities at 6.4%. The electronic works category ranked sixth at 6.2%, and then landscaping works at 4.8%. The dams category ranked eighth at 3.3%; city cleaning and waste disposal achieved a percentage of 3.1%, and the remaining categories achieved percentages of between 0.07% and 1.9%. The recommendations were that the Saudi government should provide an investment preference in any future development plan for activities that received the highest priority in the AHP model.