The momentum of construction projects across the Middle East and North Africa (Mena) rebounded in August as pre‑execution activity accelerated, according to GlobalData’s latest Construction Project Momentum Index (CPMI).

The regional CPMI rose to 0.93 in August — a 20% month‑on‑month increase — lifting Mena to the top of GlobalData’s regional league table. The three‑month moving average nudged up slightly from 0.94 in July to 0.95 in August, signalling a modest but meaningful recovery after the dip reported in early September’s CPMI update.

A clear shift in the make‑up of that recovery was evident in the breakdown between project stages. Momentum for projects in execution softened, with the execution score falling from 1.12 in July to 0.97 in August. By contrast, pre‑execution activity strengthened markedly, the pre‑execution score jumping from 0.74 to 1.20 — a reversal from the weakness in project starts reported in July and a key driver of the region’s improved overall reading.

Sector performance was mixed. Energy and utilities improved, rising from 0.93 in July to 1.08 in August, while infrastructure made a notable recovery, up from 0.43 to 0.83. The residential sector recorded a modest uplift to 0.94. However, commercial and leisure eased back to 0.83 and the institutional sector slipped to 0.68. The industrial sector, which had struggled in prior months, posted a partial recovery moving from 0.48 to 0.74.

Country‑level movements underline the divergent picture across the region. Kuwait posted one of the strongest gains, its score climbing to 1.58 from 0.81 in July as several energy and utilities projects progressed. Algeria and Qatar also featured at the stronger end of the scale with scores of 1.71 and 1.39 respectively. At the other end, Iran’s CPMI tumbled from 0.82 to 0.36, driven by delays to a planned programme of five gas‑fired power plants amid deepening economic stress tied to conflict‑related instability, high inflation, currency devaluation and energy imbalances.

The August results provide a contrast with the previous month, when GlobalData flagged a slowdown across Mena in July. That update showed the region’s CPMI had fallen to 0.77 in July — a 24% drop from June — with pre‑execution activity particularly weak, falling from 1.04 to 0.74. The latest data indicate that much of that weakness was short‑lived: while execution‑phase momentum has eased since midsummer, a rebound in project announcements and approvals has helped lift the pre‑execution score sharply.

Regional comparisons in GlobalData’s broader August report show Mena outperforming other major construction markets. North America recorded a score of 0.87, Western Europe 0.84 and South‑East Asia 0.83. China, North‑East Asia and South Asia sit at the lower end of the index, with China registering one of the steepest month‑on‑month declines.

The numbers imply several things for the industry. The increase in pre‑execution momentum suggests developers and sponsors are re‑engaging with new project pipelines after a pause in late summer, which could translate into stronger construction starts through the remainder of 2025 and into 2026 if projects move into delivery as expected. Continued strength in energy and infrastructure is consistent with the region’s ongoing focus on energy transition, utilities modernisation and connectivity projects; these sectors look set to underpin activity even as commercial and institutional segments show uneven performance. Country‑level volatility — exemplified by the sharp fall in Iran and the jump in Kuwait — highlights how geopolitics, fiscal capacity and commodity price dynamics continue to shape the pace and health of project pipelines across the region.

Investors and contractors will be watching whether the improvement in pre‑execution momentum is sustained and converts into higher execution‑phase activity. For now, GlobalData’s CPMI indicates the Mena construction market has regained some forward motion after the summer slowdown, but the recovery remains uneven across sectors and countries.