Saudi Arabia Dominates Global Construction Industry in Second Quarter of 2024
In a remarkable display of strength, Saudi Arabia has solidified its status as a leading force in the global construction industry in the second quarter of 2024.
Exceptional Performance Reflects Kingdom’s Dominance in the Region
According to the Royal Institution of Chartered Surveyors’ Global Construction Monitor, Saudi Arabia achieved the highest Construction Activity Index reading globally at +64.
This exceptional performance underscores the Kingdom’s dominance in the Middle East and Africa region, where the overall CAI for the area was +24, reflecting a slight decrease from the previous quarter but continuing a streak of 14 consecutive quarters of growth.
Robust Construction Sector Driven by Extensive Project Pipeline
The robust construction sector in Saudi Arabia is driven by an extensive pipeline of projects, amounting to $1.5 trillion, which represents 39 percent of the $3.9 trillion total construction market in the Middle East and North Africa. This broad sector includes residential, commercial, industrial, infrastructure, transportation, and energy construction, creating significant opportunities for contractors.
Global Construction Sector Shows Notable Growth
The construction activity in other nations also showed notable growth. Mauritius and the UAE recorded strong performances, with CAI readings of +57 and +54, respectively. However, Bahrain and Qatar faced challenges, with Qatar’s CAI at -28 indicating a continued contraction in the sector, exacerbated by a post-World Cup downturn.
Industry Optimism Remains High Despite Challenges
Despite financial pressures and skills shortages impacting the construction industry globally, industry optimism remains high. Expectations for workload and profit margins are improving, with a pronounced acceleration anticipated in the private residential sector. The infrastructure sector continues to lead in performance, both currently and in future workload indicators.
Saudi Arabia’s Role in Shaping the Future of the Global Construction Sector
Overall, the Saudi construction market’s robust performance and ongoing growth highlight the Kingdom’s pivotal role in shaping the future of the global construction sector.