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.



Russia is on the Verge of Recession, Says Economy Minister

The Russian flag waving in front of the Kremlin in Moscow, July 1, 2018. (AFP / Yuri Kadobnov)
The Russian flag waving in front of the Kremlin in Moscow, July 1, 2018. (AFP / Yuri Kadobnov)
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Russia is on the Verge of Recession, Says Economy Minister

The Russian flag waving in front of the Kremlin in Moscow, July 1, 2018. (AFP / Yuri Kadobnov)
The Russian flag waving in front of the Kremlin in Moscow, July 1, 2018. (AFP / Yuri Kadobnov)

Russia's economy is on the verge of sliding into recession, Economy Minister Maxim Reshetnikov said at the St Petersburg International Economic Forum on Thursday.

Russia this month cut interest rates for the first time since 2022, easing borrowing costs to 20% from 21%. But for months, businesses have complained of high rates stifling investment and economic growth has started to ease.

"According to the figures, there is a cooling, but all our figures are in the rear-view mirror," Reshetnikov said.

"According to the current feelings of businesses and business indicators, we are already, it seems to me, on the verge of going into recession. On the verge."

At the same session, Central Bank Governor Elvira Nabiullina said the current slowdown in GDP growth was "a way out of overheating".

Alexander Vedyakhin, First Deputy CEO of Russia's largest lender Sberbank said in an interview with Reuters this week that tight monetary policy was creating overcooling risks and said much lower interest rates of 12-14% would be acceptable to restart investment lending.

"There is a danger of the economy overcooling and that we will not be able to get out of this dip, and that further growth may be subdued," Vedyakhin said.