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Saudi Arabia’s Construction Sector Strongest in the World

Saudi Arabia is witnessing constant growth of construction activity, supported by giant projects. (Photo: AFP)
Saudi Arabia is witnessing constant growth of construction activity, supported by giant projects. (Photo: AFP)
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Saudi Arabia’s Construction Sector Strongest in the World

Saudi Arabia is witnessing constant growth of construction activity, supported by giant projects. (Photo: AFP)
Saudi Arabia is witnessing constant growth of construction activity, supported by giant projects. (Photo: AFP)

The latest Global Construction Monitor, issued by the Royal Institution of Chartered Surveyors (RICS), revealed that the Construction Activity Index in Saudi Arabia showed the strongest results in the world.

The monitor is a quarterly guide to the trends in the construction and infrastructure markets.

The index in the Kingdom recorded a 69 percent reading in the third quarter of 2023, up from 63 percent in the previous quarter.

The data points to the continued exceptional impact of mega projects in Saudi Arabia, which fuels much of the positive climate for the sector.

However, some factors limit further growth, with increasing demand for highly trained labor, as well as high-quality requirements for construction materials.

Looking ahead, the 12-month outlook for private and non-residential housing remains very positive for the entire Middle East region, according to the report.

In this context, Saudi Arabia is achieving the strongest results in global comparison. New commercial demand continues to rise in the third quarter, with the latest net rate of 28 percent constituting a new record.

The Kingdom registered an exceptional result of 80 percent in terms of total demand, which is among the largest increases in new commercial orders in the world.

Meanwhile, seven percent of respondents in a survey that covered all regions of Saudi Arabia indicated an increase in the number of employees in the construction sector during the third quarter of 2023, compared to the constant reading of minus one percent in the second quarter.

Based on these results, Saudi Arabia remains the strongest construction market in the world, which is not surprising, according to the report, given the record impact of its mega projects.

But in order to reach new heights, the industry will need to overcome growing skills and labor shortages, as well as increases in material costs caused by overwhelming demand. Despite these challenges, the report confirms that continuous investment in projects enhances resilience, and the construction sector in the Kingdom appears ready to maintain its position as a global leader in the foreseeable future.

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Business

Oil Jumps on Trump's Iran Threat

A pump jack operates near a gas turbine power plant in the Permian Basin oil field outside of Odessa, Texas, US February 18, 2025. REUTERS/Eli Hartman
A pump jack operates near a gas turbine power plant in the Permian Basin oil field outside of Odessa, Texas, US February 18, 2025. REUTERS/Eli Hartman
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Oil Jumps on Trump's Iran Threat

A pump jack operates near a gas turbine power plant in the Permian Basin oil field outside of Odessa, Texas, US February 18, 2025. REUTERS/Eli Hartman
A pump jack operates near a gas turbine power plant in the Permian Basin oil field outside of Odessa, Texas, US February 18, 2025. REUTERS/Eli Hartman

Gold soared to a fresh record near $5,600 on Thursday and oil prices climbed after US President Donald Trump ramped up geopolitical tensions with threats of a military strike on Iran.

"With the Middle East tinder box looking set to ignite again, oil prices have moved sharply higher, lifting shares in listed energy giants," said Susannah Streeter, chief investment strategist at Wealth Club, AFP reported.

Stock markets mostly rose in Asia and Europe as investors also pored over company earnings and the US Federal Reserve's latest policy update.

Frankfurt slid almost one percent in midday deals, however, dragged down by German software giant SAP.

Its share price tumbled nearly 14 percent after the company warned it would see a slowdown in new cloud computing contracts this year after missing targets last year.

Gold hit a new record at $5,595.47 an ounce as investors rush to assets deemed safe, including silver, which reached its own record of $120.44 an ounce.

The precious metals are being helped by a softer dollar, sparked by speculation that Trump is happy to see the world's reserve currency weaken despite the potential risk of pushing up US inflation.

An uneventful policy announcement by the Fed on Wednesday did little to inspire buying, though observers said traders were optimistic that US interest rates will come down as Trump prepares to name his pick as the next governor of the central bank.

Trump has meanwhile warned that Tehran needed to negotiate a deal over its nuclear programme, which the West believes is aimed at making an atomic bomb.

"Hopefully Iran will quickly 'Come to the Table' and negotiate a fair and equitable deal -- NO NUCLEAR WEAPONS -- one that is good for all parties. Time is running out, it is truly of the essence!" Trump wrote on his Truth Social platform.

"The next attack will be far worse! Don't make that happen again," he added, referring to US strikes against Iranian targets in June.

International benchmark Brent crude oil briefly topped $70 a barrel Thursday for the first time since September with a gain of more than two percent.

On stock markets, Meta jumped in after-hours trade after the US parent of Facebook and Instagram published quarterly earnings that topped expectations, as revenue grew along with investments in artificial intelligence.

South Korean tech giant Samsung Electronics posted record quarterly profits Thursday, riding massive market demand for the memory chips that power AI.

Ahead of the Wall Street open, US chemicals group Dow said it would slash 4,500 jobs and use artificial intelligence and automation to improve productivity and boost profitability by at least $2 billion.

- Key figures at around 1145 GMT -

Brent North Sea Crude: UP 2.2 percent at $6.03 per barrel

West Texas Intermediate: UP 2.6 percent at $64.88 per barrel

London - FTSE 100: UP 0.6 percent at 10,217.82 points

Paris - CAC 40: UP 0.5 percent at 8,110.53

Frankfurt - DAX: DOWN 0.9 percent at 24,597.26

Tokyo - Nikkei 225: FLAT at 53,375.60 (close)

Hong Kong - Hang Seng Index: UP 0.5 percent at 27,968.09 (close)

Shanghai - Composite: UP 0.2 percent at 4,157.98 (close)

New York - Dow: FLAT at 49,015.60 (close)

Euro/dollar: UP at $1.1952 from $1.1944 on Wednesday

Pound/dollar: UP at $1.3798 from $1.3797

Dollar/yen: UP at 153.49 yen from 153.38 yen

Euro/pound: UP at 86.62 pence from 86.56 pence

Business

Saudi Arabia Concludes Privatization Program

The Saudi capital (Reuters)
The Saudi capital (Reuters)
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Saudi Arabia Concludes Privatization Program

The Saudi capital (Reuters)
The Saudi capital (Reuters)

Saudi Arabia’s Council of Economic and Development Affairs (CEDA) has approved the conclusion of the Kingdom’s Privatization Program after its implementation and objectives were fully completed, in line with the roadmap established when the initiative was launched in 2018.

The decision was taken during a meeting held via videoconference on Wednesday, during which the council also reviewed key developments in the domestic and global economic landscape.

The council highlighted the strong competitive capabilities of the Saudi economy in confronting expected global shifts in 2026, noting that current financial indicators reflect an upward trajectory driven by robust growth in non-oil sectors, alongside the recovery of petroleum activities and the expansion of the national industrial base.

Launched in 2018, the Privatization Program aimed to support national economic growth, strengthen the role of the private sector, and identify government assets, services, and resources suitable for privatization across multiple sectors. The program sought to improve the quality and efficiency of public services while reducing their cost for individuals and businesses.

At the start of its virtual meeting, the council reviewed the monthly report submitted by the Ministry of Economy and Planning, which addressed recent developments in the global economy and growth prospects for 2026 amid ongoing challenges, as well as their potential impact on the national economy and its ability to adapt to global economic changes.

The report underscored the positive trend reflected in various economic and financial indicators, including GDP growth driven by continued expansion in non-oil activities, the recovery of oil-related sectors, rising industrial output, and stable inflation, supported by government measures to regulate real estate prices and maintain balance in the property market.

The conclusion of the Privatization Program marks a transition from a foundational phase to a new phase focused on implementation and maximizing impact. This shift will be guided by the National Privatization Strategy, which has reviewed targets, developed new opportunities, and established a comprehensive national framework for prioritizing initiatives across key sectors.

Business

Gold Eyes $5,600 on Flight to Safety; Silver Tops $120

Gold bars with Chinese characters reading “Fortune Gold” are seen at a gold shop in Hangzhou, in China’s eastern Zhejiang province on January 26, 2026. (Photo by AFP) / China OUT
Gold bars with Chinese characters reading “Fortune Gold” are seen at a gold shop in Hangzhou, in China’s eastern Zhejiang province on January 26, 2026. (Photo by AFP) / China OUT
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Gold Eyes $5,600 on Flight to Safety; Silver Tops $120

Gold bars with Chinese characters reading “Fortune Gold” are seen at a gold shop in Hangzhou, in China’s eastern Zhejiang province on January 26, 2026. (Photo by AFP) / China OUT
Gold bars with Chinese characters reading “Fortune Gold” are seen at a gold shop in Hangzhou, in China’s eastern Zhejiang province on January 26, 2026. (Photo by AFP) / China OUT

Gold marched ahead on Thursday, hovering just shy of $5,600 an ounce as investors rushed into safe havens amid geopolitical and economic unease, while silver vaulted past $120.

Spot gold shot up 3% to $5,560.07 an ounce by 0557 GMT, after hitting a record $5,594.82 earlier in the day. The metal has hit record-highs for nine straight sessions, Reuters said.

"Gold prices are (rising on) safe-haven demand because of the strange geopolitical situation and even the political situation in the US, (which is) not looking great. There are concerns around Fed independence. And when that happens, investor trust in ‌the financial system ‌gets shaken up," said ANZ analyst Soni Kumari.

Investors are ‌worried ⁠about the US ‌Federal Reserve's independence amid the Trump administration's criminal investigation into Chair Jerome Powell, efforts to fire Fed Governor Lisa Cook, and the looming nomination of Powell's replacement in May.

"Growing US debt and uncertainty created by signs that the global trade system is splintering into regional blocs as opposed to a US-centric model (are leading investors to pile into gold)," said Marex analyst Edward Meir.

The yellow metal jumped past the $5,000 mark for the first time on Monday and ⁠has gained more than 10% so far this week, with strong safe-haven demand, firm central bank buying, and ‌a weaker dollar, all driving prices higher.

Gold has already ‍gained more than 27% this year, ‍following a 64% jump in 2025.

"Although the parabolic nature of the rally suggests ‍a pullback is not far away, the underlying fundamentals are expected to remain supportive throughout 2026, positioning any dips as attractive buying opportunities," IG market analyst Tony Sycamore said.

US President Donald Trump urged Iran on Wednesday to come to the table and strike a deal on nuclear weapons. He warned that any future US attack would be far more severe than the one last year when Iranian nuclear sites were struck.

Tehran responded ⁠with a threat to strike back against the US, Israel, and those who support them.

Meanwhile, the Fed left rates unchanged on Wednesday, as widely expected. Powell said inflation in December was likely still well above the central bank's 2% target.

With elevated gold prices, customers have been flocking to precious metal traders in Shanghai and Hong Kong, with some betting it could rise even further.

Elsewhere, spot silver was up 1.4% at $118.25 an ounce after hitting a record high of $120.45 earlier. Demand from investors looking for cheaper alternatives to gold, along with supply shortages and momentum buying, helped the white metal, which has already jumped more than 60% thus far in 2026.

Spot platinum climbed 2.8% to $2,770.49 an ounce, after hitting ‌a record high of $2,918.80 on Monday, while palladium rose 1.6% to $2,107.37.