Construction activity in Saudi Arabia records record infrastructure reading since 2018 but skills shortages a concern

Construction activity in Saudi Arabia records record infrastructure reading since 2018 but skills shortages a concern

- RICS (Royal Institution of Chartered Surveyors) Construction Activity Index records record positive reading

- Infrastructure leads the way on workloads among exceptionally strong sector overall

- Skills shortages remain a concern, aligning with the global construction industry

- Resource demands of the Saudi Arabian construction industry impacting neighbouring states

The Royal Institution of Chartered Surveyors (RICS) Global Construction Monitor Q1 2023 for Saudi Arabia reports that Saudi Arabia’s construction sector remains exceptionally strong in the first three months of 2023.

The headline RICS Construction Activity Index (CAI) reported a very strong +69 net balance, up from the +65 reported in the previous quarter. Meanwhile, construction workloads continue to post solidly positive readings, with infrastructure reporting an exceptional +86 net balance which is a record positive result since the RICS construction monitor began assessing Saudi Arabia in Q3 2018. Workloads of private residential and private non-residential types also demonstrated very good results (+58 and +79, respectively).

What is primarily holding back the Saudi Arabian construction sector is also affecting the global industry – such as skills shortages and costs of materials. 84% of respondents, the highest proportion, say skills shortages are holding back activity, closely followed by the cost of materials (78%). Crucially, of these skills