17/06/2026 04:12 AST
Saudi Arabia awarded its highest-value construction contracts of 2026 in May, with 18 projects totalling more than SR30.03 billion ($7.99 billion) across the Kingdom.
The figures come from Saudi Contractors Authority's monthly sector report, which tracks projects listed on the SCAVO platform and is designed to help contractors identify investment opportunities and plan their businesses.
The data lands against a backdrop of improving sector sentiment. The Al Rajhi Capital Saudi Construction Index, compiled by S&P Global, climbed to 51.2 in May from 48.5 in April, crossing the 50-point threshold that separates expansion from contraction, its highest reading in three months, though growth remained softer than at the start of the year.
"The infrastructure sector is the highest in terms of financial value and number of projects, with 10 projects exceeding SR25 billion," the SCA report said.
It also noted that manufacturing and construction each accounted for 17 percent, with water and energy making up the remaining 11 percent.
Geographically, Makkah led in project count with seven awards representing 39 percent of the total, while Aseer topped the value table at over SR18 billion, followed by Riyadh at more than SR8 billion.
The month's largest single award was the Aseer-Jazan Expressway, owned jointly by the Ministry of Transport, the National Center for Privatization & PPP and the Aseer Region Development Authority, valued at over SR18 billion. Other major contracts included the Sheikh Jaber Al-Ahmad Al-Sabah Road in Riyadh and the Khuzam-Nour Khuzam residential district, also in Riyadh.
Looking ahead, the report added that "20 projects are expected to be awarded during June 2026, with more than 47 percent of them in the construction and building sector. Additionally, half of these projects are expected to be concentrated in the Eastern Province and the Riyadh region."
Anticipated project owners include the Public Investment Fund, Al-Khafji Joint Operations, the Ministry of Environment, Water and Agriculture, Saudi Aramco, Baoshan Iron & Steel and the Royal Saudi Land Forces.
On the broader economic outlook, SCA cited its own 2025 study projecting the gross domestic product for the first quarter of 2026 at between SR1.18 trillion and SR1.35 trillion, with the non-oil sector contributing between SR636 billion and SR746 billion and the construction sector alone expected to account between SR81 billion and SR106 billion.
Separately, a GASTAT study published last month showed that the Business Confidence Index in Saudi Arabia's construction sector reached 55.7 in April, up 2.7 points from March, reflecting a positive outlook across key business indicators.
Arab News
Please wait...
