Building permits issued in Saudi Arabia surge 16% in July

Saudi Arabia saw a 16% surge in building permits issued in July 2026, according to the General Authority for Statistics (GASTAT). The number of permits rose from 5,045 in June 2026 to 5,828, marking a 4% increase compared to July 2025 when 5,582 permits were issued. While a slight decrease of 0.2% was observed month-over-month, compared to May 2026 where 5,056 permits were granted.

The construction cost index also experienced a 2.3% increase in July 2026 compared to the previous year, attributed to a 2.2% rise in residential sector costs and a 2.6% increase in non-residential sector costs. The residential sector index saw a 2.2% year-on-year increase due to a 4.2% rise in equipment and machinery rental costs, a 1.4% increase in labor costs, and a 3% rise in energy prices.

Basic material costs also rose by 1.8%, driven by a 3.9% increase in timber and carpentry prices and a 2.8% increase in the prices of other building materials. The construction cost index in June 2026 was 104.0 points, up from 101.2 points in June 2025, mainly due to a 5% increase in equipment and machinery rental costs, a 3% rise in energy costs, and a 2.6% increase in labor costs.

Construction cost data showed continued growth in both sectors, with the residential sector recording a 2.6% increase compared to June 2025, driven by a 4.5% rise in equipment and machinery rental costs, a 3% increase in energy costs, a 2.5% increase in labor costs, and a 1.8% rise in basic material costs.