# Saudi Arabian construction cost trends

> Live situation record from CLSTR: https://clstr.news/situations/saudi-arabian-construction-cost-trends
> Updated: 2026-08-23T08:41:35.000Z. Sources: 2. Developments: 2.

In July 2026, Saudi Arabia experienced a 2.3% year-on-year increase in construction costs, according to the General Authority for Statistics. This growth was observed in both the non-residential sector, which rose by 2.6%, and the residential sector, which grew by 2.2%.

Within the residential sector, the most significant increase was seen in equipment and machinery rental costs at 4.2%. Other contributing factors included energy prices (up 3.0%), basic material costs (up 1.8%), and labor costs (up 1.4%). Specifically, timber and carpentry prices rose by 3.9%.

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

## Timeline

### 2026-08-23: Saudi Arabia construction costs rise 2.3% in July

Saudi Arabia's construction costs increased by 2.3% year-on-year in July 2026, with rising expenses in both residential and non-residential sectors.

2 sources. https://clstr.news/cluster/saudi-arabia-construction-costs-rise-23-in-july

### 2026-08-02: Saudi Institutions Record Net Purchases of 1.54 Billion Riyals in July 2026

Saudi institutions logged net purchases of 1.54 bn riyals (≈$411 m) in July 2026, led by companies at 1.29 bn riyals. Saudi investors bought 483 m riyals, while foreign investors recorded net sales.

2 sources. https://clstr.news/cluster/saudi-institutions-record-net-purchases-of-154-billion-riyals-in-july-2026

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Cite as: Saudi Arabian construction cost trends. CLSTR, https://clstr.news/situations/saudi-arabian-construction-cost-trends