Riyadh – Mubasher: The seasonally adjusted alrajhi capital Saudi Construction Index rose to 56.3 in June from 51.2 in May, remaining above the 50-point threshold that separates expansion from contraction for a second consecutive month.
The sharp increase reflects a significant acceleration in construction output. The stronger performance was backed by new project launches, improved regional stability and the normalization of business operations, which boosted activity across the sector.
The residential construction segment led the expansion, with growth accelerating to its strongest pace of 2026 so far. Survey respondents attributed the growth to stronger investor sentiment and continued public-sector support for new housing developments.
Sultan Altowaim, Head of Research at alrajhi capital, commented: “The June reading of the alrajhi capital Saudi Construction Index points to a clear acceleration in sector momentum, with the headline index rising to 56.3 from 51.2 in May, the strongest expansion since the survey began."
He explained: "The improvement was broad-based across residential, non-residential and infrastructure activity, supported by a rebound in new orders, the restart of delayed projects, and a more stable operating environment. Residential construction remained the strongest-performing segment, while non-residential and infrastructure activity also returned to healthier growth."
"Encouragingly, business expectations improved sharply, with the 12-month outlook reaching its highest level since the start of the survey. That said, cost pressures remain an important area to monitor, particularly with firms reporting higher prices for key materials such as aluminium, steel and electrical equipment,” Altowaim indicated.
