Saudi Construction Hiring Growth Slows Sharply

Saudi Arabia's construction sector has experienced a notable slowdown in workforce growth, shifting from rapid hiring to single-digit increases. In the first quarter of 2026, the number of registered construction workers reached 365,562, marking a 6% year-on-year increase. This is a significant decrease from the 32% growth seen in 2025 and 41% in 2024. The slowdown is evident across all worker categories, including engineers and technicians, with growth dropping to 8% from nearly 20% in the previous two years.

This deceleration reflects a strategic shift in Riyadh's funding approach for construction projects. The Public Investment Fund's strategy for 2026-30 no longer explicitly mentions flagship developments like The Line and Trojena, focusing instead on increasing private sector involvement. Consequently, budgets for some Neom projects have been reduced by up to 60%, and PIF capital expenditure is expected to decrease by around 15% this year.

For a developer: This slowdown in hiring growth indicates a more cautious approach to construction investments in Saudi Arabia, potentially affecting project timelines and resource allocation. Developers and investors may need to adjust their strategies to align with the kingdom's evolving funding priorities and increased emphasis on private sector participation.