the construction sector in Saudi Arabia experienced strong growth during the second quarter of 2026, with the value of awarded projects rising to approximately 71.3 billion riyals—an increase of 42% compared to the first quarter, which recorded projects worth 30.2 billion riyals, according to data from the Saudi Contractors Authority , indicating the continued flow of investments into the sector and its growing role in the non-oil economy.
The value of awarded projects during the second quarter was distributed across its three months, reaching approximately 11.8 billion riyals in April, 30 billion riyals in May, and 29.5 billion riyals in June, making the second quarter a busy period for the Saudi construction market.
The Saudi Contractors Authority expects the construction sector’s contribution to gross domestic product (GDP) during the second quarter of 2026 to range between 77 billion riyals and 107 billion riyals, while estimates from a study prepared by the Authority in 2025 indicate that the Kingdom’s GDP during the same quarter will range between 1.15 trillion and 1.34 trillion riyals, while non-oil GDP is estimated to be between 632 billion and 760 billion riyals.
The construction sector is one of the main drivers of the Kingdom’s non-oil economic transformation under the «Vision 2030» objectives, with its contribution to non-oil GDP over the past three years ranging between 5% and 7%, according to data from the General Authority for Statistics.
The strong influx of projects reflects the sector’s importance in the Saudi market, especially as major projects are projected to account for 36.6% of the construction market in 2025, in line with the Kingdom’s goal of increasing the contribution of targeted non-oil activities to 50% of gross domestic product by 2030.
The impact of spending is not limited to the construction sector itself, as the Authority’s estimates indicate that every riyal spent on construction projects can generate between 2.5 and 3 riyals in related sectors, such as steel, cement, transportation, engineering, and real estate development, thereby enhancing the broader economic impact of new projects.
The sector also serves as a tool for attracting private investment and supporting residential development through programs such as «Sakani,» which aims to provide 2 million housing units, in addition to the National Housing Company’s launch in early 2026 of smart apartment projects in Riyadh valued at $800 million.
The importance of the building and construction sector extends beyond the implementation of the projects themselves; it forms a fundamental foundation for enabling other economic sectors to grow through the development of the necessary infrastructure, utilities, and facilities. New construction accounted for 81.2% of the Saudi construction market in 2025, reflecting a continued focus on expanding assets and new projects.
