Saudi construction hiring slows sharply as giga-project ambitions are scaled back

Saudi Arabia's construction sector has shifted from hiring at breakneck pace to single-digit workforce growth, as the kingdom recalibrates its giga-project ambitions and developers demand greater certainty before adding headcount.

The number of workers registered under construction activity reached 365,562 in the first quarter of 2026, up 6% year on year, according to Saudi Contractors Authority data. That marks a steep deceleration from growth of 32% in 2025 and 41% in 2024. Across all worker categories including engineers and technicians, growth slowed to 8% in the first quarter from close to 20% in each of the two prior years.

The slowdown in hiring reflects a fundamental shift in how Riyadh is funding construction. The Public Investment Fund's 2026-30 strategy drops explicit references to The Line and Trojena — Neom's flagship developments — and instead commits to expanding private sector participation. Budgets on some Neom projects have been cut by up to 60%, and PIF capital expenditure is expected to fall around 15% this year.