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The construction pipeline lost steam in July, with 11 contracts awarded worth a combined SAR 9.6 bn, the Saudi Contractors Authority reported (pdf). That’s less than half the 23 projects projected in its June outlook and a sharp step down from the last few months.
Down from a high: June saw a yearly high of 25 contracts worth SAR 29.5 bn, while May led the year in value at more than SAR 30 bn across 18 contracts. YTD, 97 projects worth more than SAR 111.3 bn have been awarded.
Construction and building did the heavy lifting again, taking seven of the 11 contracts for a combined SAR 6.6 bn. Infrastructure followed with SAR 2.8 bn across three projects, and water and energy accounted for the remaining SAR 375 mn from a single award.
Riyadh took the lion’s share. The capital claimed seven of the 11 contracts, worth more than SAR 7.5 bn between them. Hail followed with three projects worth SAR 1.9 bn, and the Eastern Province picked up a single SAR 375 mn contract.
The delivery timeline: The July projects are set to be built out over three years — three worth more than SAR 2.79 bn due for completion in 2028, five worth over SAR 5 bn in 2029, and three valued above SAR 1.51 bn in 2030.
Looking ahead, the Authority expects 11 contracts to be awarded in August, more than 70% of them in construction, building, and infrastructure, with around half concentrated in the Eastern Province and Makkah. Owners expected to bring projects to market include the National Housing Company, Retal Urban Development, Dar Wa Emaar, Aramco, the Saudi Water Authority, Alomar Investment, and Thabat Real Estate.
REMEMBER- Costs are climbing more slowly, but the pressure hasn’t lifted. The Construction Cost Index rose 2.3% y-o-y in July, its slowest pace in four months, and held flat m-o-m, per Gastat. Beneath the headline, costs of equipment rentals and materials — the inputs most exposed to the war — are still rising as logistics disruptions and Houthi threats work through supply chains.
