Activity in the construction sector declined to low levels during the Ramadan season, causing a slump in the real estate and construction sectors of more than 50 percent after the pace of work on economic infrastructure projects slowed across all regions of the Kingdom, which contributed significantly to aa drop in labor wages and construction material prices by more than 15 percent compared to previous months.
Investors and workers in the construction sector reported that the slowdown and contraction in construction activity—particularly in economic projects—had an impact on the prices of building materials, which had previously posed the most significant challenges to the construction sector due to their high prices; these prices have now stabilized and decreased significantly.
Investors noted that some workers in the construction sector have begun working evening shifts, which has generated revenue for electrical supply stores as workers turn to them to purchase nighttime lighting supplies—including electrical devices, connectors, and wiring—thatenable them to perform their work at night with adequate lighting.
Engineer Abdullah Radwan, Chairman of the Contractors Committee at the Jeddah Chamber of Commerce, explained that construction material prices have fallen by 15 percent, in recent days due to the decline in construction sector activity to low levels, the suspension of a number of economic projects during the Ramadan season, and the continuation of some of them, particularly during the evening hours.
Engineer Radwan noted that the decline in demand for cement, resulting from the slump in the construction sector, naturally leads to lower prices. He pointed out that the contracting sector is suffering from a lack of work due to the decline in projects during the summer and the month of Ramadan, whether from private citizens or large real estate and investment companies.

The construction sector is the largest economic activity after oil, with a value exceeding 75 billion riyals; the public sector’s contribution accounted for 60 percent of the total investment, while the private sector contributed 40 percent. It is characterized by its links to various economic sectors and is the second-largest sector after oil, with a contribution of more than 16 percent; it is also the largest employer in the Kingdom.
Most of this activity is concentrated in public buildings, which account for more than 43 percent, followed by operations and maintenance, which account for about 25 percent. There are approximately 25 independent activities representing about 17 percent, with the remainder distributed among roads, electrical work, and city sanitation . Most Saudi construction companies are concentrated in the Eastern Province, which accounts for more than 30 percent, followed by Jeddah with about 20 percent, then Riyadh with a 15 percent share of the total number of companies in the Kingdom. Next comes the Western Province, followed by Al-Qassim with 12 percent, followed by Madinah with 6 percent, with the remainder distributed among Jazan and the rest of the Kingdom’s regions.