The construction sector, which was badly hit by the amnesty and subsequent crackdown on undocumented workers, is limping back to normal.

The individual housing sector in real estate accounts for the lion’s share in contracting activity followed by the infrastructure sector.

Contracts worth about SR53.6 billion were awarded during the second quarter of 2013. A majority of the contracts were bagged by the real estate sector (residential and mixed-use) accounting for 39 percent of the total value of contracts awarded during the second quarter. The real estate sector accounted for 30 percent of the total value of contracts during the first half of 2013, according to a report by National Commercial Bank.

For construction workers, jobs are temporary and last only until the construction activity is on at any given site. The private sector real estate consists mostly of individuals who avail themselves of bank loans to take up construction, but labor charges are a major factor in such cases. Most Saudi individuals directly approach expatriate workers, mainly from Egypt and South Asian countries, and avoid having any dealings with construction establishments.

The construction sector in three major cities Riyadh, Jeddah and Dammam and indeed the rest of the Kingdom is largely dominated by undocumented expat workers, starting from laborers who unload sand to electricians, plumbers and carpenters. The only legal entity is the cement concrete mixture run by large business establishments.

After the crackdown by the authorities, Saudis are apprehensive about employing undocumented workers for fear of penalty. Besides, hundreds of contracting establishments, a major source for expat labor in the Kingdom that were functioning in violation of rules and regulations, have also closed down.

According to statistics available with the Saudi Council of Chambers, there were 200,000 registered contracting companies before the correction campaign. More than 100,000 of these companies have since pulled down their shutters.

In Jeddah, many citizens whose houses were nearing completion were struggling to give their houses finishing touch like masonry, painting and finishing. The situation, however, is reported to be improving though costs have gone up.