Saudi Arabia’s construction costs rise 2.3% in July 2026

RIYADH — The Construction Cost Index (CCI) in Saudi Arabia climbed 2.3 percent year-over-year in July 2026, primarily due to increased expenses in both residential and non-residential sectors, as reported by the General Authority for Statistics (GASTAT).

In the non-residential sector, construction costs rose 2.6 percent compared to July 2025. This increase was mainly attributed to a 2.6 percent surge in the residential sector. The rise in residential costs was mainly driven by a 4.2 percent jump in equipment and machinery rental expenses, largely due to a 5.7 percent hike in renting equipment with operators.

Energy costs saw a 3 percent increase, while basic materials rose by 1.8 percent, and labor costs went up by 1.4 percent. The higher basic material costs were fueled by a 3.9 percent rise in timber and joinery prices, alongside a 2.8 percent boost in other building materials.

Within the non-residential sector, equipment and machinery rental costs experienced a 5.8 percent year-on-year increase, mainly driven by a 7.3 percent rise in renting equipment with operators. Energy expenses went up by 3 percent, labor costs increased by 1.8 percent, and basic material costs climbed by 1.8 percent. The increase in basic materials was linked to a 4 percent surge in other building material prices and a 2.5 percent rise in timber and joinery prices.

On a month-to-month basis, the CCI remained steady in July compared to June, indicating stable costs in both residential and non-residential segments.