SAR 30 billion worth of contracting projects awarded last month

Saudi Arabia's contracting sector recorded a monthly jump of 154% in project value, led by massive infrastructure, road and bridge projects.

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The the Saudi construction sector a significant increase in the total value of projects awarded during May 2026, reflecting strong activity in the construction and infrastructure market, according to the report “A Look at the Construction Sector” issued by the Saudi Contractors Authority.

According to the report, the value of projects awarded in May reached approximately 30.037 billion riyals, compared to 11.805 billion riyals in April 2026, marking a sharp increase of 1,541% in just one month, reflecting the accelerating pace of development projects in the Kingdom. In contrast, the number of awarded projects fell to 18 in May, compared to 23 in April, indicating a rise in the average value per project during the month under review.

Distribution of Projects by Sector
The report indicated that the projects awarded in May were distributed across several key sectors, with the infrastructure sector accounting for the largest share at 25.447 billion riyals, representing approximately 55.1% of the total value, across 10 projects. Next came the construction sector in second place with a value of 3.862 billion riyals distributed across 3 projects, accounting for 17% of the total value, followed by the industrial sector with a value of 337.5 million riyals across 3 projects, accounting for 17%. The water and energy sector also recorded two projects worth 390 million riyals, equivalent to 11% of the total monitored projects.

Details of Sub-Sectors
The report noted the diversity of projects in terms of type, which included four wastewater and waste treatment plants worth 900 million riyals, 3 public service facilities worth 735 million riyals, and 3 warehouse and workshop projects worth 337.5 million riyals. The projects also included two road and bridge projects with a massive value of 23.625 billion riyals, and two power substation projects worth 390.187 million riyals. The awards also included a residential project worth 3.3 billion riyals, a commercial project worth 375 million riyals, a recreational facilities project worth 187.5 million riyals, and a water pipeline project of the same value.

Geographical Distribution of Projects
At the regional level, the Makkah region topped the list of projects in May with 7 projects, while the Eastern Province and the Riyadh region shared second place with four projects each. The regions of Ha’il, Madinah, and Asir ranked third with one project each.
In terms of value, the Asir region led with 18.750 billion riyals, followed by the Riyadh region with 8.737 billion riyals, and then Makkah with 1.635 billion riyals. The Eastern Province ranked fourth with a value of 525 million riyals, followed by Madinah with 202.5 million riyals, and then Hail with 187.5 million riyals.

Future Project Forecasts
The report projected the delivery of two projects in 2026 worth 547.5 million riyals, and two others in 2027 worth 375 million riyals, in addition to the completion of eight projects in 2028 with a total value of 24.915 billion riyals. It also noted the delivery of two projects in 2029 worth 3.487 billion riyals, along with four projects expected in 2023 worth 712.5 million riyals.

June Forecasts
The report projected that approximately 20 projects would be awarded in June 2026, with construction and building projects accounting for 47% of them, and an expected concentration in the Riyadh and Eastern regions, reflecting continued strong activity in the contracting sector during the coming period.