Construction activity in Saudi Arabia improved for the fourth straight month in August amid a sustained increase in new orders, according to alrajhi capital and S&P Global's business survey data released Monday.
The headline seasonally adjusted alrajhi capital Saudi Construction Index edged up to 55.4 in August from 55.2 in July, marking the second-highest level since the survey's launch in January.
"Activity increased across all three major segments, while new orders remained strong, with infrastructure recording its fastest rise in new orders since February," said Sultan Altowaim, alrajhi capital's head of research. "The operating environment remained supportive, with quantity purchased (by construction companies) rising at its fastest pace since the survey began, and suppliers' delivery times improving for a fourth consecutive month."
New work across the construction sector rose sharply in August, with the infrastructure and residential segments seeing an increase in new orders. This was supported regional development, utilities investments, new roads and transport connectivity projects, among other factors, amid improving market conditions.
The non-residential structures segment also saw a "solid" pace of growth in business activity as work on projects restarted on the back of better economic conditions.
Meanwhile, purchasing activity saw its sharpest rise thus far in 2026 as supply conditions also improved for the fourth consecutive month in August despite ongoing disruptions in international shipping. Input buying also increased as input price inflation picked up amid higher costs related to transportation and raw materials.
"Although input cost inflation accelerated during August, firms remained optimistic about the outlook, supported by healthy project pipelines and expectations of continued activity growth," Altowaim added.
