The construction sector in the Kingdom of Saudi Arabia continued to post strong growth rates throughout 2025, driven by the significant momentum in development and infrastructure projects across various regions of the Kingdom. The annual report of the Saudi Contractors Authority revealed a notable expansion in the number of companies operating in the sector, along with an increase in the workforce and the spread of construction-related activities, reflecting the sector’s growing role as one of the main drivers of the national economy and a key contributor to development goals.
Strong growth in the number of enterprises
The Saudi Contractors Authority’s 2025 annual report showed an increase in the number of enterprises the construction sector to 365,120 businesses by the end of the year, compared to approximately 281,820 businesses in 2024, marking an annual growth rate of 29.6%.
This growth reflects the sector’s continued expansion in recent years, as the number of establishments stood at approximately 175,470 in 2020 before declining to 167,080 in 2021. The sector then returned to a growth trajectory, with the number of establishments reaching 207,610 in 2023, then rose to 281,820 establishments in 2024 before surging to more than 365,000 establishments in 2025.
Micro-enterprises Dominate the Sector
According to the report, micro-enterprises formed the backbone of the construction sector, numbering 309,910 enterprises and accounting for 84.88% of the sector’s total enterprises. Small enterprises ranked second, with 45,700 enterprises representing 12.52% of the total number of enterprises, while the number of medium-sized enterprises stood at 8,555, with a share of 2.34%.
As for large enterprises, their number reached only 836, equivalent to 0.23% of the sector’s total, while the number of mega enterprises reached 119, representing 0.03% of the total construction enterprises in the Kingdom.
Building Construction Tops the List of Activities
Building construction continued to lead the construction sector’s activities throughout 2025, with the number of active establishments in this activity reaching 246,320, accounting for 66.67% of the sector’s total establishments. Specialized construction ranked second with 81,210 establishments, representing 21.98% of the total number of establishments.
Civil engineering recorded 21,010 establishments, accounting for 5.69%, while the number of establishments operating in building services and site beautification activities reached 15,620, representing 4.23% of the sector’s total.
In contrast, the number of establishments engaged in architectural and engineering activities, as well as technical testing and analysis, totaled only 5,272, accounting for a share of 1.43%.
Riyadh Accounts for One-Third of Establishments
Geographically, the Riyadh region maintained its leading position in terms of the number of construction firms, accounting for 33.04% of the total number of firms in the sector in the Kingdom.
The Makkah region ranked second with a share of 15.08%, followed by the Eastern Province with 13.61%, and then the Qassim region, which accounted for 11.07%. The Asir region recorded a share of 5.19% of the total facilities, while the Madinah region’s share was 4.87%, followed by the Najran region with 4.70%, and the Hail region with 4.25%.
The remaining establishments were distributed across the Jazan region (2.70%), the Tabuk region (2.03%), the Al-Jawf region (1.33%), and the Northern Border region (1.29%), while the Al-Baha region recorded the lowest share at 0.83%.
4.4 million workers in the sector
The report revealed that the number of workers in the construction sector reached 4.41 million by the end of 2025, confirming the sector’s status as one of the largest employers in the Kingdom.
The Riyadh region accounted for the largest share of the total workforce, with approximately 1.99 million workers, representing 45.25% of the sector’s total workforce.
The Eastern Province ranked second with 1.09 million workers, equivalent to 24.63% of the total workforce, followed by the Makkah region, which employed 555,460 workers, accounting for 12.60%.
In the Al-Qassim region, the number of workers reached 265,710, representing 6.03%, while Madinah recorded 105,390 workers, representing 2.39% of the total. The number of workers in the Najran region reached 100,020, representing 2.27%, and in the Asir region, 99,010 workers, representing 2.25%. The Ha'il region accounted for 68,650 workers, equivalent to 1.56% of the total workforce, while the number of workers in the Tabuk region was 40,670, and in Jazan 40,420, each accounting for 0.92%.
The Northern Border region recorded 21,500 workers, accounting for 0.49%, while the number of workers in the Al-Jawf region reached 18,760, representing 0.43%, and the Al-Baha region ranked last with 11,980 workers, representing 0.27% of the total workforce in the sector.
