Saudi Construction Sector Hits Fastest 2026 Growth in June

Saudi Arabia's construction sector experienced its strongest expansion of the year in June 2026. According to the Alrajhi Capital Saudi Construction Index, the sector's growth reading rose to 56.3 from 51.2 in May, marking the most significant acceleration since the survey began. This growth spanned residential, non-residential, and infrastructure activity, with residential construction emerging as the strongest segment.

The surge followed a rebound in new orders, the restart of delayed projects, and a more stable operating environment. This momentum is supported by the Saudi Contractors Authority, which reported that the kingdom awarded 25 projects in June valued at over SAR 29.5 billion ($7.9 billion). The construction sector dominated these awards, accounting for 14 projects valued at more than SAR 20.6 billion. The National Housing Company and Saudi Aramco were the top project owners by value.

Despite the growth, firms reported persistent cost inflation for key materials such as steel, aluminium, and electrical equipment. Looking ahead, the Saudi Contractors Authority forecasts 23 new project awards for July 2026, primarily concentrated in the Eastern, Riyadh, and Makkah regions.