The Al Rajhi Capital Saudi Construction Index hit 55.2 in July, the second-highest since launch, as infrastructure and residential building drove fresh demand.
Alpha Score of 50 reflects weak overall profile with weak momentum, moderate value, moderate quality. Based on 3 of 4 signals – score is capped at 90 until remaining data ingests.
Saudi Arabia's construction sector expanded in July, with the Al Rajhi Capital Saudi Construction Index slipping to 55.2 from 56.3 in June but remaining near its survey high. The reading was the second-strongest since the index launched in January, S&P Global data showed.
The survey of 200 construction companies, run jointly with Al Rajhi Capital, showed activity extending its growth run to three months. Companies cited a recovery in new orders and the restart of delayed projects. New business rose at the fastest clip in five months, driven by strength across all sub-sectors.
Residential building led the demand-side gains. New orders in that segment expanded at the sharpest pace since January. Many firms reported strong demand for urban housing projects, the report said. The residential sub-index came in at 56.0, the third straight monthly reading above 50.
Still, the infrastructure segment outperformed. Its sub-index hit 56.9, the highest since the survey began. Government-backed projects, particularly in transport and utilities, provided a solid base for growth, respondents said.
Non-residential construction activity weakened month over month but stayed in expansion territory at 53.4, the second-strongest since February.
Construction companies remain bullish on the outlook. About 48% of respondents expect business activity to rise over the next 12 months, while only 4% see a decline. That was the highest level of optimism since the survey started. Firms cited easing geopolitical tensions, a recovery in new contracts, and opportunities tied to Vision 2030 initiatives. Public-private partnerships were also flagged as a supporting factor.
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