Construction activity in Saudi Arabia reaches highest level in years: Survey

Construction activity in Saudi Arabia is at its highest level since 2018, according to a survey by the Royal Institution of Chartered Surveyors (RICS).

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The RICS Construction Activity Index reported the highest level of building activity in the Kingdom since its records began in Q3 of 2018.

Infrastructure, private residential, and private non-residential construction returned especially high results.

Despite the high level of activity, there remains a skills shortage, reflecting a trend in the global industry.

Out of those surveyed, 84 percent said that the skills shortage is holding back construction, while 78 percent said that the cost of materials presented an issue.

Notably, 75 percent said that there was a shortage of quantity surveyors in the industry.

Expectations for the 12 months ahead remain strong with infrastructure thought to lead the demand.

Major public projects are underway in the Kingdom including the megacity of NEOM, the Diriyah Gate Project in the capital Riyadh, and the Red Sea Project on the west coast.

Additionally, cities are expected to grow substantially in the coming years as the economy grows.

Riyadh itself is projected to grow from a population of around 7.5 million today to between 15 and 20 million by 2030.

The Public Investment Fund announced in February that it was investing $1.3 billion into local construction firms.

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