RIYADH: Saudi Arabia’s construction industry returned to expansion in May, marking a modest recovery after two months of contraction, driven by renewed growth in new work orders, an economy tracker showed.
According to the latest Al Rajhi Capital Saudi Construction Index released by S&P Global, the reading rose to 51.2 in May from 48.5 in April, crossing the crucial 50 threshold that separates growth from contraction.
The report revealed that this growth represents the highest reading in three months, although the pace of expansion remained softer than levels observed at the start of the year.
Saudi Arabia’s construction industry has been underpinned by sustained government spending on housing, infrastructure and tourism projects, although firms continue to contend with rising input costs and regional geopolitical pressures.
“The Alrajhi Capital Saudi Construction Index signalled an encouraging return to growth for the sector in May, supported by a rebound in residential activity, renewed growth in new work orders and stronger business expectations,” said Sultan Altowaim, head of research at Al Rajhi Capital.
