Saudi Construction Hiring Slows in 2026

Hiring across Saudi Arabia's construction sector showed clear signs of slowing in early 2026, as several giga-projects went through timeline adjustments and reorganization. Registered construction workers reached 365,562 in the first quarter of 2026, up 6% from 345,005 in 2025 — a sharp deceleration after annual growth of 32% in 2025 and 41% in 2024.

Across all worker categories in the sector, growth eased to 8% in the first quarter of 2026, down from around 20% in each of the two previous years. The cooling in headcount tracked a steep drop in new work: contract awards in construction fell 64.4% in the first quarter of 2026 compared with the same period a year earlier, settling at USD 3.4 billion.

By the end of June 2026, total awards across the main giga-projects stood at roughly USD 92 billion, with only USD 4.5 billion awarded in the first half of the year — a signal that new project starts had slowed considerably.

What it means for workers and employers

Alongside the market shift, labor compliance rules tightened in 2026. Employment contracts must now be documented electronically on قوى for Saudization calculations, with the documentation target raised to 85% by 30 April 2026 and 90% by 30 June 2026.

For non-Saudi employees, one 2026 change removes a worker from an employer's records when a work permit has been expired for more than three months. Employers had until 30 June 2026 to renew permits or transfer worker services in affected cases. A separate update now requires some Premium Residency holders to obtain a dedicated work permit through قوى at a fee of 100 ريال سعودي.

For the wider community, the trend points to a more measured pace of construction activity and stricter documentation — factors residents and job seekers in the sector should keep in mind when planning contracts and permit renewals.

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