The housing and construction industry in Saudi Arabia is undergoing a trans-formative shift driven by the nation’s Vision 2030 objectives, which aim to promote sustainability and reduce environmental impact. Circular Economy (CE) principles, emphasising resource efficiency, waste reduction, and material reuse, offer a promising framework for fostering sustainable development in this sector. However, housing designs in Saudi Arabia have historically prioritised luxury over sustainability, and the integration of CE principles during the design phase remains significantly underexplored. This study conducts a comprehensive review of the existing literature on the application of CE principles within Saudi Arabia's housing and construction industry, focusing on the period from 2020 to 2025. Using defined search criteria, insights were drawn from Scopus and Web of Science databases to evaluate the current state of CE adoption, identify key enablers and barriers, and assess the sector's potential for sustainable development in KSA. The findings reveal several challenges, including limited stakeholder awareness, high initial costs, a lack of standardised CE frameworks, and cultural factors that hinder widespread implementation. Despite these challenges, the study identifies significant opportunities for advancing CE practices within the Saudi housing sector. By addressing the identified barriers and leveraging enablers the sector can align more closely with the sustainability objectives outlined in Vision 2030. This paper contributes to the academic discourse on CE in the housing industry by providing a road-map for future research, policy development, and practical implementation. Ultimately, the study supports the transition toward a circular, sustainable, and resilient built environment in Saudi Arabia, aligning with the nation's goals for economic diversification and environmental sustainability.