Saudi Arabia construction costs rise 2.3% in July

Saudi Arabia's construction costs rose by 2.3% year-on-year in July 2026, according to data released by the General Authority for Statistics. This increase was driven by rising costs in both the residential and non-residential sectors.

The non-residential sector saw a 2.6% annual increase, while the residential sector grew by 2.2%. In the residential sector, equipment and machinery rental costs rose by 4.2%, labor costs increased by 1.4%, energy prices climbed by 3.0%, and basic material costs rose by 1.8%. The rise in material costs was specifically influenced by a 3.9% increase in timber and carpentry prices.

In the non-residential sector, the 2.6% annual rise was largely attributed to a 5.8% increase in equipment and machinery rental costs. Labor costs in this sector rose by 1.8%, energy prices by 3.0%, and basic materials by 1.8%. On a month-to-month basis, the general construction cost index remained stable compared to June 2026.