RIYADH: According to a senior executive, Saudi Arabia’s construction industry is still thriving, with contract awards totaling SR185 billion ($49.3 billion) in the first half of the year. Albara’a Al-Wazir, the director of economic research for the US-Saudi Business Council, stated during a webinar that the number is a 47 percent rise over the previous year. At the same time last year, 2024 was significantly higher than 2023, he continued. Al-Wazir stated that the value of contract awards increased by around 11% year over year to reach $17.6 billion, or SR66 billion, on a quarterly basis in Q2.
He added that the performance so far this year was even more remarkable. In order to help achieve the goals of Vision 2030, Al-Wazir underlined that the construction industry benefits from close cooperation between the public and private sectors. According to the CEO, “the private sector’s contribution was 4.9 percent, demonstrating exponential growth in construction contracts.” At 271 points, the overall construction index—which measures construction activities anticipated to enter the execution phase in six to eighteen months—rose sharply.
“The index shows year-over-year increases of 33 percent, indicating sustained growth,” Al-Wazir stated. According to him, the oil and gas, real estate, and water sectors are maintaining the momentum from the first quarter into the second, and the private sector’s increasing influence is boosting not only the economy overall but also the construction industry in particular.
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