The contracting sector in Madinah achieved growth during the year 2026, driven by the momentum of development projects and urban expansions in the region, and the high demand for construction and infrastructure services, which enhances the sector’s role as one of the main drivers of economic and investment activity.
Data issued by the Madinah Chamber showed an increase in the number of commercial registrations in the contracting sector from (13,757) commercial registrations in December 2025 to (14,018) registrations in March 2026. These operate within the sector, which is one of the largest economic sectors in the region, employing (107,345) workers, representing (22.3%) of the total workforce in the region, and comprising (29,967) thousand establishments operating in the contracting sector, representing about (8.2%) of the total establishments operating in the sector in the Kingdom.
Development and investment projects
The growth of the contracting sector in Madinah reflects the attractiveness of the activity for investors and establishments operating in the construction sector, as the sector’s growth is linked to the development and investment projects in the region in multiple sectors, including infrastructure, housing, real estate development, services and facilities, in addition to projects related to the tourism and hospitality sector, which supports the demand for contracting, construction, operation and maintenance work.
The report of the Madinah Chamber of Commerce indicated that the size of the existing development projects in the region enhances the sector’s future growth opportunities, as the region witnessed the implementation of (213) development projects in the first quarter of 2025, with expectations of providing more than (119) thousand future job opportunities, which opens up additional prospects for contracting establishments, suppliers, and related service providers.
The importance of the contracting sector is highlighted by its connection to a number of economic activities, most notably industries related to building materials, engineering and administrative consulting, transportation and logistics services, as well as its role in implementing residential, commercial and tourism projects, and infrastructure projects.
Growth of the contracting sector
The growth of the contracting sector contributes to supporting the investment environment in Madinah, raising the level of participation of local establishments in development projects, enhancing local content, in addition to providing job opportunities in various specialties related to construction, building, operation and maintenance work.
The movement witnessed by the sector coincides with the expansion of development and investment projects, urban and economic expansion in Madinah, and the opportunities provided by existing and future projects for the growth of sector establishments and the expansion of their businesses, in line with the objectives of Saudi Vision 2030 in diversifying the economy, empowering the private sector, and promoting sustainable development.
The construction sector in Medina is growing thanks to the momentum of development and construction projects.
The rise in business and employment records reflects the expanding demand for construction and infrastructure, with hundreds of projects being implemented and investment opportunities growing.
