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.



EU Says it Agreed with UAE to Launch Free Trade Talks

EU Commission President Ursula von der Leyen looks on in Brussels, Belgium, 10 April 2025. EPA/OLIVIER MATTHYS
EU Commission President Ursula von der Leyen looks on in Brussels, Belgium, 10 April 2025. EPA/OLIVIER MATTHYS
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EU Says it Agreed with UAE to Launch Free Trade Talks

EU Commission President Ursula von der Leyen looks on in Brussels, Belgium, 10 April 2025. EPA/OLIVIER MATTHYS
EU Commission President Ursula von der Leyen looks on in Brussels, Belgium, 10 April 2025. EPA/OLIVIER MATTHYS

The European Union said on Thursday it agreed with the United Arab Emirates to launch free trade talks, amid the upheaval and uncertainties created by US President Donald Trump’s decision to impose tariffs. He has since walked back some of the tariffs.

“Today, (the European Commission) President von der Leyen held a cordial phone call with His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates. During their discussion, they agreed to launch negotiations on a free trade agreement,” the EU said in a statement, according to Reuters.

The talks will focus on trade in goods, services, investment and deepening cooperation in strategic sectors including renewable energy, green hydrogen and critical raw materials, the EU said.

The UAE's president said the decision to initiate negotiations on a Comprehensive Economic Partnership Agreement (CEPA) with the EU reflects a shared determination to unlock the full potential of cooperation and advance their economic, trade, and investment ties in support of development aims.

“The CEPA would create new avenues for cooperation between the UAE and EU, increase trade and investment flows, and strengthen partnerships between the business communities of both sides,” Sheikh Mohamed wrote on his X account.

He emphasized that UAE-EU relations are founded on a common vision of stability, growth, and prosperity.

By reducing tariffs and unnecessary trade barriers and improving market access for goods and services, the pact is expected to foster opportunities in key sectors including advanced manufacturing, healthcare, logistics, and artificial intelligence, UAE's state news agency (WAM) said.

The EU is the UAE's second-largest trading partner, accounting for 8.3% of the Emirati total non-oil trade. The wealthy Gulf state is also the EU’s largest export destination and investment partner in the Middle East and North Africa, WAM added on Thursday.