{"id":106187,"date":"2026-06-18T12:58:48","date_gmt":"2026-06-18T09:58:48","guid":{"rendered":"https:\/\/amlak.net.sa\/?p=106187"},"modified":"2026-06-18T12:58:49","modified_gmt":"2026-06-18T09:58:49","slug":"%d9%82%d8%b7%d8%a7%d8%b9-%d8%a7%d9%84%d8%a5%d9%86%d8%b4%d8%a7%d8%a1%d8%a7%d8%aa-%d9%8a%d8%b9%d9%88%d8%af-%d9%84%d9%84%d9%86%d9%85%d9%88-%d9%81%d9%8a-%d9%85%d8%a7%d9%8a%d9%88-%d8%a7%d9%84%d8%b3%d9%83","status":"publish","type":"post","link":"https:\/\/amlak.net.sa\/en\/106187\/","title":{"rendered":"Construction Sector Returns to Growth in May... Residential Sector Leads the Recovery Despite Cost Pressures"},"content":{"rendered":"

The index recorded Al Rajhi Financial Corporation<\/a><\/strong> For the sector Construction <\/strong><\/a>In Saudi Arabia, after seasonal adjustment, there was a positive rebound in May, rising from 48.5 points in April to 51.2 points, returning once again above the 50-point threshold separating growth from contraction and marking the best reading in three months, reflecting a modest improvement in the pace of activity within the sector.<\/p>\n\n\n\n

This improvement points to a gradual recovery in operational momentum, supported by factors linked to greater regional stability, which has encouraged many companies to resume work on existing projects and restart a number of new ones. However, the recovery continues to proceed at a slower pace compared to early 2026, as operational pressures persist.
Despite signs of improvement in production and new orders since April, the report noted that the sector continues to face major challenges, most notably heightened uncertainty in the business environment, rising production input costs, and a trend among customers toward greater caution and risk aversion in their contracting decisions.<\/p>\n\n\n\n

Residential Construction Leads the Way in Performance <\/strong>
At the subsector level, the top sectors are Construction Sector<\/a><\/strong> The residential sector\u2019s performance in May reached 53.8 points, returning to the top spot for the first time since January. This performance was driven by rising underlying demand for residential units and improved customer confidence, along with the market regaining some of its balance following previous disruptions linked to regional developments.
The sector also continued to Buildings <\/a><\/strong>The non-residential sector\u2019s growth trajectory reached 50.5 points, supported by the continued implementation of a range of commercial and industrial projects, as well as a gradual improvement in investor confidence, which has helped maintain steady expansion in this sector since the beginning of the year.

Decline in the Infrastructure Sector <\/strong>
In contrast, the infrastructure sector saw a notable decline to 45.7 points, marking its first contraction since the index began tracking data, driven by a recent drop in new orders, which weighed on the performance of this vital sector.
In terms of new orders, growth resumed in May after two months of decline; however, the pace of expansion remained below the levels recorded in January and February, reflecting continued caution in the market despite improved fundamentals.
The companies also noted that they continue to benefit from demand linked to long-term economic diversification projects and Saudi Vision 2030 initiatives, in addition to growth resulting from rapid urban expansion and major government projects across the Kingdom.
On the supply chain front, the sector saw a notable improvement in May, as delivery times for production inputs fell for the first time since February, coinciding with improved availability of subcontractors, which helped boost execution efficiency.<\/p>\n\n\n\n

Logistical Challenges <\/strong>
However, despite these positives, certain logistical challenges persisted, particularly delays in shipments in the region and rising transportation and raw material costs, which were reflected in the largest increase in production input prices since the study began in January.
As for future expectations, the May data showed a clear improvement in business confidence, with about 30% of respondents expecting activity to rise over the next year, compared with only 16% who expected a decline, marking the highest level of optimism in four months, driven by expectations of continued strong demand, improved regional stability, and increased growth opportunities associated with major development projects.<\/p>\n\n\n\n

<\/p>","protected":false},"excerpt":{"rendered":"

Reading time: <\/span> 2<\/span> Minutes<\/span><\/span>Al-Rajhi Capital\u2019s Construction Sector Index for Saudi Arabia, after seasonal adjustment, recorded a positive rebound in May, rising from 48.5 points in April to 51.2 points, returning once again above the 50-point threshold separating growth from contraction and marking its best reading in three months, reflecting a modest improvement in the pace of activity within the sector. This improvement indicates \u2026 Read more<\/a><\/p>","protected":false},"author":27,"featured_media":96287,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"","_seopress_redirections_param":"","_seopress_redirections_type":0,"_seopress_analysis_target_kw":"","_seopress_news_disabled":"","_seopress_video_disabled":"","_seopress_video":[],"_seopress_pro_schemas_manual":[],"_seopress_pro_rich_snippets_disable_all":"","_seopress_pro_rich_snippets_disable":[],"_seopress_pro_schemas":[],"amlak_video_sent":"","footnotes":""},"categories":[123],"tags":[],"class_list":["post-106187","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-building-materials-techniques"],"acf":{"amlak_post_excerpt":" \u062a\u0635\u062f\u0631 \u0642\u0637\u0627\u0639 \u0627\u0644\u0625\u0646\u0634\u0627\u0621\u0627\u062a \u0627\u0644\u0633\u0643\u0646\u064a\u0629 \u0627\u0644\u0623\u062f\u0627\u0621 \u062e\u0644\u0627\u0644 \u0645\u0627\u064a\u0648\u060c \u0645\u0633\u062c\u0644\u064b\u0627 53.8 \u0646\u0642\u0637\u0629\u060c \u0644\u064a\u0639\u0648\u062f \u0625\u0644\u0649 \u0627\u0644\u0635\u062f\u0627\u0631\u0629 \u0644\u0623\u0648\u0644 \u0645\u0631\u0629 \u0645\u0646\u0630 \u064a\u0646\u0627\u064a\u0631 \u0627\u0644\u0645\u0627\u0636\u064a. 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