Madinah leads regional growth with 24% construction employment in Q1
RIYADH: Saudi Arabia's Madinah region recorded strong first quarter growth in 2025, led by 24 percent workforce participation in construction and 20 percent in trade, signaling diversification momentum.
A recent report by the Madinah Chamber of Commerce outlines the region's sectoral distribution, with construction continuing to dominate amid a surge in infrastructure projects, the Saudi Press Agency reported.
The wholesale, retail trade, and vehicle maintenance sector, which accounted for 20 percent of the workforce, continued to thrive, demonstrating strong commercial activity and consumer demand. This segment's high employment rate underscores Madinah's role as a regional trading hub.
The manufacturing sector, representing 12 percent of the workforce, showed growth that indicates the emergence of a stronger industrial base, contributing to economic diversification and reducing reliance on oil-related industries.
Tourism, with an 11.2 percent workforce share, remained a key sector for Madinah as a destination for religious tourism, benefiting from a steady influx of pilgrims. The sector's workforce expansion aligns with increased investment in hospitality, transportation, and tourism-related services, the SPA report added.
The chairman of the chamber, Mazen bin Ibrahim Rajab, emphasized the focus on improving the business environment by leveraging Madinah's economic strengths and investment opportunities.
The report situated Madinah's growth within broader economic trends. In 2024, the worldwide economic growth reached 3.2 percent, supported by a rebound in foreign direct investment, while inflation declined to 4.5 percent, signaling improving economic stability.
The Kingdom's gross domestic product grew by 4.4 percent in 2024, with non-oil sectors expanding by 5.9 percent. Madinah contributed significantly to this trend, recording a 2.8 percent increase in its GDP, reaching SR57.6 billion ($15.3 billion) in the third quarter of 2024.
The report showed that Madinah recorded the second-highest domestic demand growth in Saudi Arabia at 11 percent, trailing only Riyadh.
Additionally, foreign direct investment in the Kingdom surged by 36.6 percent in the third quarter 2024, reaching SR16 billion, with Madinah attracting a notable share due to its expanding industrial and commercial opportunities.
The report also highlighted Madinah's booming real estate and infrastructure sectors with property transactions in 2024 totaling SR10 billion, reflecting strong investor confidence.
The job market improved significantly, with unemployment dropping from 10.3 percent in the third quarter of 2024 to 8.4 percent in the following three-month period, thanks to new employment opportunities across key sectors.
A total of 213 development projects, valued at over SR210 billion, are currently in progress, according to the report. These include 153 commercial projects, 27 mixed-use residential and commercial developments and other projects in healthcare, education, tourism, and religious infrastructure.
These initiatives are expected to generate more than 119,000 jobs, further boosting Madinah's economic prospects.
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