GlobalData’s latest Construction Project Momentum Index (CPMI) for the Middle East and North Africa (Mena) region reveals a notable decline in construction activity, with the CPMI score dropping to 0.77 in July 2025, a 24% decrease from the previous month.

The score for the region’s largest construction market, Saudi Arabia, fell from 0.88 in June to 0.75 in July, which is a 15% decline. In contrast, the UAE recorded a score of 1.13 in July, up from 0.91 in June, showcasing resilience and ongoing investment in construction projects.

The decline for the region in July follows a period of growth. It recorded a CPMI score of 1.01 in June 2025, reflecting a 9% increase from May and a 12% increase from April. The earlier expansionary period highlighted the Mena region's status as one of the world’s most active construction markets, driven by ongoing efforts to diversify economies and invest in infrastructure projects.

The recent decline indicates ongoing challenges within the sector, as the three-month moving average score also showed a slight decrease, falling from 0.97 in June to 0.95 in July. The monthly scores for various project stages indicate a stable performance in the execution phase, which experienced a minor decrease from 1.13 in June to 1.12 in July. In contrast, the pre-execution phase faced a more significant decline, plummeting from 1.04 to 0.74 during the same period. This disparity suggests that while ongoing projects are maintaining momentum, the initiation of new projects is lagging.

Sector-wise performance varied considerably. The commercial and leisure sector showed improvement, rising from a score of 0.73 in June to 0.99 in July, indicating a rebound in activity within this area. Conversely, the energy and utilities sector saw a decline, with its score dropping from 1.40 to 0.93, reflecting a slowdown in investments and project completions. The industrial sector also faced challenges, decreasing from 1.20 to 0.48, highlighting difficulties in this segment.

On a more positive note, the infrastructure sector's momentum increased, rising from 0.12 to 0.43, suggesting a renewed focus on essential infrastructure projects. The institutional sector remained relatively stable, with scores of 0.88 in June and 0.84 in July, while the residential sector experienced a slight decline, falling from 0.90 to 0.87.

As the Mena region navigates these fluctuations in construction momentum, the latest CPMI results underscore the need for strategic investments and initiatives to bolster project initiation and execution. While certain sectors show promise, the overall decline in the CPMI highlights the challenges that lie ahead for the construction industry in the region.

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Distributed to senior decision-makers in the region and around the world, the September 2025 edition of MEED Business Review includes: