Saudi Construction Index drops to 54.4 points in September

Riyadh city

The seasonally-adjusted Al Rajhi Capital Saudi Construction Index, compiled by S&P Global, edged down to 54.4 points in September 2026, from 55.4 points in August.

This release marks the fifth edition of the Al Rajhi Capital Saudi Construction Index, a new monthly survey of 200 construction companies that have been carefully selected to accurately represent the true structure of the Saudi Arabian construction sector.

Saudi construction companies recorded another strong expansion in business activity in September, extending the current period of growth that began in May 2026. All three subsectors recorded an increase in business activity, with residential construction and infrastructure among the best-performing sectors.

The latest reading showed the slowest rate of growth in business activity for four months, with survey respondents widely citing favorable market conditions and strong demand linked to major construction projects, which continued to drive growth in residential construction, commercial construction, and infrastructure. Nevertheless, some construction companies cited sales-related challenges due to slower customer decision-making in September 2026, while others pointed to challenges resulting from a high rate of price inflation.

Construction companies reported an increase in new business for the fifth consecutive month in September 2026. However, the overall rate of new business growth was the lowest since May 2026.

*MoM Change.

September 2026 survey data indicated a strong and rapid increase in business activity in the infrastructure sector. The seasonally-adjusted index rose from 53.9 points in August 2026 to 55.8 points in September 2026, the second-highest reading since the survey began in January 2026.

Activity in the residential construction sector recorded a sharp increase in September, with the index reaching 56.6 points, although at a slower pace than in the previous month.

Non-residential construction activity recorded a slight expansion in September, with the index reaching 50.9 points, the lowest rate of growth since May 2026.

Construction firms maintained an optimistic outlook on growth, with around 34% of survey respondents expecting business activity to increase over the next three months, while only 8% forecast a decline. Optimism was highest in the residential construction sector, which recorded the second-highest level of confidence since January 2026.