NEW DELHI, November 6: Saudi Arabia’s construction activity grew for a sixth straight month in October, though at the slowest pace since May, as a record surge in infrastructure work offset the first fall in non-residential building, according to the alrajhi capital Saudi Construction Index compiled by S&P Global.
Key highlights
- Headline index: 52.3 in October, down from 54.4 in September, the sixth month above 50.
- Infrastructure: index jumped to 64.3 from 55.8, the highest since the survey began in January 2026, on road, utility and other civil engineering projects.
- Housing: index at 50.4, the slowest growth since the current upturn began in May.
- Non-residential: offices, commercial, institutional and industrial building fell for the first time since the survey began.
- Outlook: about 31% of firms expect activity to rise over the next three months, against 5% expecting a fall.
| Index | October 2026 | September 2026 |
|---|---|---|
| Saudi Construction Index (headline) | 52.3 | 54.4 |
| Infrastructure activity | 64.3 | 55.8 |
| Residential activity | 50.4 | — |
| Non-residential structures | Below 50 (first fall) | — |
What firms reported
Around 40% of firms reported more infrastructure work in October and only 5% less, citing heavy workloads on major civil engineering projects. New orders kept rising, though at the slowest pace since May, and employment returned to growth. Greater use of local suppliers kept delivery times broadly stable, and input cost inflation eased from September but stayed high. Sultan Altowaim, head of research at alrajhi capital, said “planned project starts and resilient demand continue to support the sector’s growth outlook”.
About the survey
The index is new: October was its sixth public release. It tracks a panel of 200 construction companies chosen to represent the structure of the Saudi industry, across residential, non-residential and infrastructure work.
Our calculation
- The headline index fell 2.1 points, while the infrastructure index rose 8.5 points.
- Among firms giving an outlook, positive views outnumbered negative ones by about six to one (31% against 5%).
What it means for India
Saudi Arabia’s building boom employs large numbers of Indian workers and creates work for Indian construction and engineering firms. A shift towards roads and utilities suggests demand for engineers and contractors will hold up, even as office and commercial projects slow. The broader Saudi non-oil PMI stood at 54.0 in October (our Gulf PMI report).
What to watch
- Whether non-residential building keeps falling in November.
- Input costs as fuel and material prices stay high.
The Riyadh skyline with the King Abdullah Financial District and Kingdom Tower. Image: B.alotaby, CC BY-SA 4.0, via Wikimedia Commons. Photo source · Licence
Sources
The Business Desk covers markets, the economy, companies and personal finance. Stories are checked against at least two credible sources before publication.
