RIYADH: The contracting sector in Saudi Arabia is receiving strong momentum, supported by the volume of projects currently underway in the country, according to Mohammed Al-Ajlan, chairman of the Saudi Contractors Authority, who spoke to Al-Eqtisadiah newspaper.
Al-Ajlan stated that the number of contractors registered with the authority has reached approximately 117,000, emphasizing that a significant portion of the authority’s services focuses on supporting small and medium-sized enterprises, as they represent a large segment of the sector’s workforce.
He explained that the authority has launched several platforms and programs to support contractors, including the “Irtaqa” initiative, which provides pathways for qualifying small contractors, in addition to evaluating quality, governance, financial organization, and safety standards. This contributes to raising the efficiency of these enterprises and enhancing their readiness to enter the market.
A recent report by the authority revealed that June saw the highest number of projects awarded in 2026, with 25 undertakings and a total value exceeding SR29.5 billion ($7.84 billion). This placed June second in value, after May, when project value surpassed SR30 billion.
The analysis indicated that the construction sector accounted for the largest share of projects, with a total of 14, exceeding SR20.6 billion, representing 56 percent of the total. This was followed by the infrastructure, water, and energy sectors, each accounting for 20 percent, followed by the oil and gas sector at 4 percent.
The chairman said that the contracting sector is a key driver of the Saudi economy, given the significant expansion in infrastructure and development projects underway in the Kingdom. He noted that the opportunities available today enable small and medium-sized contractors to strengthen their market presence and gradually become major contractors.
Geographically, the Eastern Province led in the number of projects awarded in June, with 10 undertakings representing 40 percent of the total. It also ranked first in terms of investment value, exceeding SR11.4 billion, followed by the Riyadh region with over SR10.8 billion.
The report anticipates the awarding of 23 projects in July, with more than 60 percent concentrated in the construction sector. Approximately half of the expected initiatives are located in the Eastern Province, Riyadh, and Makkah. The undertakings are expected to be launched by major entities, including the Public Investment Fund, Saudi Aramco, SABIC, and several other investment bodies.
Al-Ajlan noted that the authority also provides the “Maamar” platform, model contracts, and various training and qualification programs, in addition to awareness initiatives aimed at clarifying the requirements of project owners and implementation mechanisms. This helps contractors meet regulatory and technical requirements.
He added that these endeavors aim to empower small contracting companies to compete for major initiatives and increase their contribution to development projects.
