Saudi Construction Up 2.3% as Permits Jump 20% in June

Saudi Arabia's construction sector recorded a 2.3% annual increase in June 2026, while wholesale and retail trade and vehicle repair activities edged up 0.6% over the same period, reflecting continued momentum across the Kingdom's economy.

The construction component index reached 120.32 points during the month, while the broader Operating Revenues Index rose 6.1% year-on-year. The number of issued building permits climbed to 5,045 in June 2026, up 20.3% from 4,192 permits a year earlier, signalling strong demand for new development.

The Construction Cost Index reached 104 points in June 2026, an annual increase of 2.7% and the highest growth rate recorded since data collection began in January 2024. Residential construction costs rose 2.6%, while non-residential costs increased 3.1%.

Project activity accelerates

The total value of projects awarded in June 2026 exceeded SAR 29.5 billion across 25 projects — the highest number of awarded projects in 2026, and the second-highest monthly value after May 2026, which surpassed SAR 30 billion. The Saudi Construction Index, a survey-based measure of activity, rose to 56.3 in June from 51.2 in May, its highest level in about six months, pointing to accelerated output.

On the trade side, real GDP for wholesale and retail trade and vehicle repair reached SAR 146.1 billion in the first quarter of 2026. The Kingdom's economy grew 3.0% in real terms in Q1 2026, with construction up 2.5% and wholesale and retail trade and vehicle repair up 3.6%.

For residents and businesses in Riyadh, Jeddah and beyond, the figures point to a steady pipeline of housing, commercial projects and retail services — supporting jobs, homes and everyday spending as the Kingdom's development drive continues.

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