The monthly report issued by Saudi Contractors Authority for the month of February 2026 showed the continued activity in the project market. <The report showed that the building and construction sector accounted for the largest share of the total value of projects offered during the month, with a value of about 2.52 billion riyals, which represents half of the number of projects awarded. The rest of the projects were distributed among the water and energy sectors, emphasizing the diversity of investments between developing urban infrastructure and enhancing basic utility services.
<At the sub-sector level, the four projects were distributed with one project for each sector, but the differences in value were clear, as the recreational facilities sector topped the list in terms of the volume of investments with a value of more than 1.8 billion riyals, showing the increasing interest in projects of a tourist and cultural nature. The hotel sector came second with a value of more than SAR 716 million, an indication of the continued expansion of the hotel infrastructure to keep pace with tourism growth.
<In the details of the projects awarded in February, the iconic museum project within the second phase of the Diriyah project emerged as the largest project in terms of value, costing more than 1.3 billion riyals in the Riyadh region, a project owned by the Diriyah Gate Development Authority and the Public Investment Fund. The projects also included a hotel within the Media and Innovation District in Diriyah with a value of SAR 1.2 billion for the Diriyah Gate Development Authority. In the energy sector, a project to replace underground cable circuits in Riyadh worth approximately SAR 160 million was awarded to the Saudi Electricity Company, while the water sector saw the award of a project to operate and maintain the water network and associated facilities in Medina worth more than SAR 133 million to the National Water Company, reflecting continued investment in raising the efficiency of basic services.
The report indicated that the implementation of the projects presented in February will extend over two years, with three projects expected to be delivered in 2028 with a total value of more than two billion riyals, while one project will be delivered in 2029 with a value of more than 133 million riyals, reflecting the long-term nature of the sector's projects.
Nine projects awarded since the beginning of 2026
With the addition of the February projects, the total number of projects awarded since the beginning of 2026 has risen to nine, with a total value of approximately SR14.6 billion. January recorded the awarding of five projects worth about 11.74 billion riyals, before four new projects were added in February worth 2.81 billion riyals, confirming a strong start to the current year in the contracting market. The report expected activity to continue during March 2026, with about 16 new projects awarded to contractors, with more than half of them concentrated in the construction and building sectors, along with the water and energy sector, reflecting the continued priority for infrastructure development and urban projects.
More than half of them are concentrated in the construction and building sectors, along with the water and energy sector. <Riyadh, Makkah and the Eastern Province are expected to account for nearly half of the expected projects, in light of the continued development momentum in these regions as major centers for economic and tourism projects. The upcoming period is expected to see the launch of new projects from key entities, including Jeddah Economic Company Limited, the Civil Aviation Authority, Building Development Company, Saudi Water Partnership Company, Saudi Aramco and Kingdom Holding Company, which reinforces expectations that the flow of opportunities for contracting companies will continue in the coming months.
In general, February's indicators reflect the continued transformation of the contracting sector into a major implementation platform for major development projects, supported by the diversification of investment sectors and the breadth of project proposers, opening the way for an extended growth cycle in the coming years.
