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.