Saudi Arabia’s awarded projects hit SAR 30 bn in May, targeting long-term developments

May was Saudi Arabia’s biggest month for project awards in 2026, logging SAR 30 bn across 18 contracts, a 154.4% m-o-m surge, according to a Saudi Contractors Authority report (pdf).

By sector: Infrastructure took the lion’s share of both value and volume with 10 projects worth over SAR 25 bn, or 55% of total awards. Construction came in second at SAR 3.9 bn, followed by water and energy at SAR 390 mn, and industrial projects at SAR 337.5 mn.

Regional breakdown: Aseer topped by value on a single contract — the SAR 18.8 bn Aseer-Jazan expressway, owned by the Transport Ministry, National Center for Privatization & PPP, and the Aseer Region Development Authority. Riyadh followed with SAR 8.7 bn across four projects, led by Royal Commission for Riyadh City’s SAR 4.9 bn Sheikh Jaber Al Sabah Road and an SAR 3.3 bn residential project in Dahiyat Khuzam by Grova Developments, Tilal Real Estate, and the National Housing Company. Makkah led by volume with seven contracts worth SAR 1.6 bn.

The geographic spread tells the strategy: The Aseer-Jazan expressway ties into the Kingdom’s push to position Aseer as a tourism destination, Sheikh Jaber Road continues Riyadh’s infrastructure buildout ahead of the 2034 World Cup, and Dahiyat Khuzam adds to a residential pipeline that Knight Frank estimates will need to deliver around 830k additional units by 2034 to keep pace with population growth. Makkah’s awards, meanwhile, will stack onto SAR 13.3 bn in recently awarded redevelopment contracts to prep the holy city for foreign property ownership.

The timeline: Of the projects awarded in May, eight worth SAR 24 bn are due for completion in 2028 — the heaviest delivery year. Two projects worth SAR 547.5 mn are expected this year, two more worth SAR 375 mn in 2027, and four worth SAR 712.5 mn by 2030.