Saudi Non-Oil Private Sector Grows in August 2026

Saudi Arabia's non-oil private sector continued to grow through August 2026, supported by strong activity in construction and real estate,

The non-oil private sector Purchasing Managers' Index (PMI) reached 53.8 points in August 2026, up from 53.1 points in July, signalling sustained expansion. Readings above 50 indicate growth. The Saudi Construction Index also edged up to 55.4 points, from 55.2 in July, confirming ongoing momentum in the sector.

Within the Construction Index, residential building led the way with a reading of 57.5, while non-residential structures such as commercial buildings expanded at a solid 53.5. This growth was matched by a busy pipeline of new contracts entering execution, with construction and development procurement in the second quarter of 2026 including contract awards exceeding SAR 29.5 billion in June alone.

New contracts across the Kingdom

August 2026 brought a projected 11 contracting awards, with more than 70% of their value focused on building, construction, and infrastructure, and a significant share concentrated in the Eastern Province and Makkah. This follows July, when 11 contracting projects worth around SAR 9.8 billion were awarded.

Notable recent deals include the Remal Business Court design-and-build agreement in Al Khobar, valued at SAR 267,984,911 (excluding taxes and fees) with a 12-month execution period. In الرياض, the Dar Hamad 3 residential project in Namar district is worth SAR 13.76 million on a 9,600 m² site, while the HS Residences 2 project in Al Arid district is valued at SAR 19.78 million and covers 60 residential units.

Larger developments also reflect the sector's strength, including a main construction contract for a Waldorf Astoria hotel, residences, and mixed-use superblock in الدرعية valued at over SAR 2.7 billion. For residents and businesses, the steady growth points to expanding housing supply, new commercial spaces, and continued job opportunities across the Kingdom.

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