Saudi Arabia’s Construction Sector Faces Talent Shortage Amidst Global Activity
Saudi Arabia’s construction sector remains among the most active globally, with over 5,200 projects worth $819 billion. However, a shortage of skilled labor and rising costs of materials like diesel, steel, and cement are straining timelines and project quality—highlighting the urgent need for workforce development and cost management strategies.
Based on the most recent Global Construction Monitor from the Royal Institution of Chartered Surveyors (RICS), Saudi Arabia leads the globe in building activity; nonetheless, a serious lack of competent and unskilled personnel is hindering this unheard-of development.
One of the highest countries worldwide, Saudi Arabia showed a stunning construction activity reading of +72 percent in Q4 2023 according to the monitor. Driving this spike with an eye-watering +82 percent activity level are infrastructure and public works projects. Like NEOM, the Kingdom’s slate of “giga-projects is driving ravenous demand for workers and building materials.
Industry respondents in the Q1 2024 Global Construction Monitor survey indicate that this frenzy of projects is generating both several major difficulties and opportunities. Labour shortages are a main concern raised; regular references to a “shortage of skilled manpower” and trouble “finding the right caliber of staff” highlight this. One Dammam respondent said, “Major skills shortages” are hurting the industry.
Beyond only staffing shortages, others felt there were more basic competency problems among current employees. “Some are not competent to do their jobs,” a Dammam respondent said, “many lack proper planning skills and fail to engage in Front-End Loading planning, which is essential for effective project management.”
The scarcity of unskilled labour is significant, with more than one-third of companies seeing difficulties in recruiting general labourers, as reported by the RICS monitor. Additional identified challenges encompass escalating expenses, with a respondent from Riyadh cautioning that “the increasing costs of diesel, steel, and cement will impact unit rates.” Another individual from Riyadh stated that localisation regulations mandating the utilisation of national resources had an influence.
Nonetheless, the flourishing construction activity was perceived as an opportunity by certain individuals. A respondent from Riyadh stated, “The substantial transfer of trades from neighbouring GCC countries, attributed to the volume of work, enhances the non-oil exports of KSA.” The establishment of entertainment facilities was emphasised as having a beneficial impact on the enhancement of the construction market.
To match the RICS monitor’s rate of output growth, however, 77 percent of industry professionals say they lack workers.
With around $1.1 trillion in mega-projects either in development or planned, innovative solutions to the manpower shortage will be crucial to keep Saudi Arabia’s newly acquired global reputation as the construction capital.
Aala Tech Launches Maintenance Division for Smart Building Systems
Aala Tech opens the Smart Building Systems Maintenance Division. Officially starting its specialized Maintenance Division to offer smart building systems throughout Saudi Arabia continuous support and maintenance, Aala Tech Building Management Systems (BMS), Guest Room Management Systems (GRMS), Fire Alarm Systems, Access Control, and Low Current Systems) all depend on this new service guarantees best performance and dependability of these systems. Aala Tech’s maintenance solutions are meant to minimize downtime, extend system lifecycles, and guarantee compliance with safety criteria as fast development in smart infrastructure calls for.
Already operating in 2025, the division oversees important sites in several industries. Here is a summary of some of the significant continuing maintenance initiatives:
Golden Tower – Jeddah
A landmark high-rise in the heart of Jeddah’s business district, Golden Tower houses commercial offices and VIP tenants. Aala Tech is responsible for preventive and reactive maintenance of the BMS, ensuring continuous performance of HVAC, lighting control, and power systems. The contract includes remote monitoring and quarterly health assessments to optimize energy use and tenant comfort.
Taibah University – Madinah
One of the Kingdom’s major public universities, Taibah’s sprawling campus includes academic buildings, laboratories, and residential areas. Aala Tech maintains the central BMS, ensuring efficient control of temperature, ventilation, and energy use across the university. The team also supports emergency call-outs and monthly diagnostics to prevent system downtime during peak academic hours.
Dar Al Hekmah University – Jeddah
Serving thousands of female students, this elite institution requires strict indoor climate control and high energy efficiency across its IT labs, classrooms, and administration blocks. Aala Tech provides real-time system health tracking, seasonal HVAC optimization, and sensor calibration services, ensuring sustainability and student comfort.
National Guard Hospital – Riyadh
This mission-critical medical facility demands round-the-clock BMS availability, especially for ICU, surgical, and isolation units. Aala Tech’s maintenance division provides 24/7 on-site technical support, failover system testing, and redundancy planning to ensure life-saving systems function flawlessly. Quarterly reports are shared with hospital administrators for audit and compliance.
Al Shaya Warehouse – KAEC (King Abdullah Economic City)
Al Shaya’s distribution warehouse handles a wide variety of goods, including retail, food, and cosmetics, which require strict storage conditions. Aala Tech manages the BMS used for environmental zoning, air quality management, and energy-efficient ventilation systems, ensuring goods are preserved under optimal conditions.
Al Hamrani Building – Jeddah
This commercial headquarters features open-plan offices, meeting facilities, and data rooms. Aala Tech’s role involves routine inspections, system tuning, and firmware updates to keep the BMS aligned with modern standards and minimize energy waste. A smart alert system was also added to help building managers respond quickly to anomalies.
NUPCO Warehouse – Madinah
As a logistics hub for pharmaceuticals and medical equipment, this facility is subject to strict regulatory controls. Aala Tech maintains the temperature and humidity-sensitive BMS, including backup systems and remote alerts. The service includes audit-compliant maintenance logs and emergency restoration protocols, ensuring operational continuity in all conditions.
These projects reinforce Aala Tech’s growing role as a long-term technology partner in smart buildings—delivering not just systems, but ongoing assurance of their performance, safety, and compliance.
Why Choose Aala Tech?
At Aala Tech, we combine deep industry expertise with a passion for innovation to deliver intelligent building automation solutions that drive efficiency, safety, and sustainability. As a trusted B2B partner with a proven track record in major projects across Saudi Arabia, we are committed to long-term success through quality, professionalism, and a strong culture of trust.
- 15 years in KSA: We are working in BMS and Low Current as authorized Honeywell Partner since 2010
- Strong Technical Team: With more than 20 Design & Estimation Engineers, we are capable of handling mid-large size projects
- End-to-End Turn-key Solution: With in-house panel building and installation team, we offer a complete turn-key solution
- Authorized Partnerships: Besides Honeywell, we have more than 50 partnerships, offering competitive prices
Over 50% repeat customers: Repeat customers is a proof that we deliver what we commit and keep the customer satisfied
Low Current Systems by Aala Tech
Aala Tech delivers integrated Low Current Systems tailored for modern smart buildings, healthcare facilities, educational institutions, hospitality, and commercial spaces across Saudi Arabia. Our solutions are designed for seamless integration, long-term reliability, and intelligent building automation.
We collaborate with top-tier manufacturers to offer the following solutions:
Audio / Video Systems
Brands: Crestron, Biamp, Blaze, Samsung, Huawei
Our AV systems enhance meeting rooms, classrooms, and public spaces with advanced audio clarity and video distribution. We offer solutions for video conferencing, centralized AV control, public address, and digital signage – using reliable platforms like Crestron control systems, Biamp DSPs, Blaze amplifiers, and Samsung professional displays.
IPTV (Internet Protocol Television)
Brands: Alcad, Televes, AtVision
We provide scalable IPTV systems for hospitality, healthcare, and corporate sectors. Our offerings enable live TV, video-on-demand, and interactive services using trusted IPTV middleware and hardware from Alcad, Televes, and AtVision.
IP Telephone Systems
Brands: Cisco, Vtech, Fanvil, Avaya, Alcatel
Aala Tech delivers secure, feature-rich IP telephony systems for enterprises and hospitality. Whether it’s Cisco’s unified communications, Fanvil IP phones, or Avaya’s PBX platforms, we ensure seamless voice communications with full integration into existing networks.
UPS & Central Battery Systems
Brands: EATON, Teknoware, APC, Legrand
Our UPS and emergency power systems are designed to support critical infrastructure during outages. We implement EATON and APC UPS units for uninterrupted power and Teknoware central battery systems for emergency lighting, fully aligned with global safety standards.
Master Clock Systems
Brand: Sapling
We provide synchronized clock systems with GPS/NTP-based accuracy, ideal for hospitals, schools, and transport hubs. Using Sapling’s wireless and wired master clock technology, we ensure all systems are time-coordinated, reliable, and scalable.
Nurse Call Systems
Brands: iCall, Legrand, Alcad, Ackermann
In healthcare environments, our nurse call systems enhance patient care and staff efficiency. We deploy advanced solutions from iCall, Legrand, Alcad, and Ackermann, offering real-time alerts, room-to-nurse station communication, and centralized monitoring.
National Plan to Stimulate Urban Policies by 2025
The Saudi government has announced a national plan to stimulate urban policies by 2025, aiming to enhance the quality of life for residents. This initiative includes the development of a “Digital Twin” model to simulate urban policy impacts, plan for emergencies, and foster collaborative city design.
RYADH: To guarantee integrated services for citizens by 2025, Saudi Arabia intends to drive urban programs, says top minister, so improving quality of life. Speaking during the first Global Smart City Forum’s opening remarks in Riyadh, Kingdom’s Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail said that this will be significant since Saudi Arabia is about to create a national model called the Digital Twin.
Emphasizing Vision 2030 as a transforming trip for Saudi Arabia and stressing its part in inspiring enthusiasm, optimism, and ambition among people, the minister further described its urban development plan. We also keep very ambitious in creating one of the most well-known national applications and models, the Digital Twin, which is revolutionizing our city planning and operation. Al-Hogail said.
“Our goal is for at least 10 Saudi cities to be among the top 50 global cities by achieving the factors of governance, sustainability, and interaction with the population, so meeting their aspirations, and achieving high prosperity for them,” the minister said, describing the development made by Saudi cities in the field of smart technologies and urban development.
He said, “Four of our energetic cities were ranked on the Smart Cities Index last year. This remarkable path towards change has allowed us to use data, artificial intelligence, and technology to really and practically influence local governments.”
Al-Hogail highlighted a case study of how technology is being used to enhance infrastructure and city services. She said that in Jeddah, waste management solutions were created using newly discovered technical breakthroughs like the Internet of Things to plan and monitor operations properly.
“We thus lowered violations related to waste and hygiene by 25 percent to reach a cleaner city to avoid the disturbance of residents resulting from the movements of cleaning crew in Dammam on the Arabian Gulf coast,” he said.
“We have presented an application that manages more than 20,000 parking spaces, through which access to the most crowded areas has been facilitated to achieve a seamless experience for residents to find available parking spaces,” the minister said.
Al-Ghamdi highlighted during the opening remarks that this is a result of government efforts to make use of the national smart city platform.
“We gather today and tomorrow to achieve three main objectives and vision sustainable smart cities of the future, enhance governance, smart city initiatives globally for the government, stimulate businesses to invest in building smart solutions,” Al-Ghamdi said.
He also pointed out that utilising weekly footage of the Kingdom’s major cities, algorithms and models were created to identify visual pollution in streets.
Under cooperation with the Ministry of Municipality, this project sought to maintain urban beauty and raise general quality of life.
“During the last Hajj season, in collaboration with the Ministry of Interior, we supported traffic and cloud management in one of the world’s most challenging event scenarios with several advanced analytics and AI solutions,” Al-Ghamdi said.
“This resulted in reducing the waiting time at the entrance gate of Makkah region significantly,” he continued.