Saudi Construction Hiring Slows Amid Giga-Project Revisions

AGBI reports that construction hiring in Saudi Arabia has slowed following a rejig of giga-projects, with domestic delivery cited as the main pressure on the specialist workforce. The construction industry, which had been increasing headcount by a third year-on-year in 2024 and 2025, has now shifted to single-digit growth, despite an increase in contract awards and recalibration of giga-projects.

According to Nathan Kearney, managing director at Executive Search, the era of stockpiling construction staff in anticipation of Saudi giga-project demand is over. Data from the Saudi Contractors Authority shows a 6 percent increase in construction workers in the first quarter of 2026, marking a slowdown from the previous years' growth rates of 32 percent in 2025 and 41 percent in 2024. Pay continues to rise, but at a slower rate than the broader economy.

The shift in hiring trends is linked to changes in funding strategies by the Public Investment Fund, which now emphasizes a greater role for the private sector. Neom's budgets have been cut, and PIF capital expenditure is expected to decrease by 15 percent this year. Giga-projects such as Neom, Red Sea, Diriyah Gate, and Qiddiya are competing for a limited pool of talent, particularly in specialized trades.

For a developer: The slowdown in hiring and the shift in project priorities highlight the need for strategic planning and resource allocation in the Saudi construction market. Developers and investors should be aware of the increasing competition for skilled labor and the evolving role of private sector participation in major projects.