Saudi Arabia’s Construction Cost Index rose by 1.4% in February 2026 compared to the same period in 2025.
The index hit 102.5 points (base year 2023), up from 101.1 points in February 2025, according to data from the General Authority for Statistics.
The increase was mainly driven by a rise in construction costs for the residential sector (+1.4%) and the non-residential sector (+1.5%).
The index measures changes in construction costs over time based on a basket of building materials and construction services, and is widely used by planners and researchers.
Construction Cost Index
Period
Index (Points)
Annual Change
January 2025
101.0
+1.0%
February
101.1
+0.9%
March
101.2
+1.0%
April
101.2
+1.0%
May
101.3
+1.2%
June
101.2
+1.1%
July
101.7
+0.7%
August
101.8
+0.7%
September
101.8
+0.7%
October
101.7
+1.0%
November
101.8
+1.0%
December
101.9
+1.2%
January 2026
102.4
+1.4%
February
102.5
+1.4%
The year-on-year (YoY) increase in the index was mainly driven by higher labor costs, which rose by 2.8%, along with increases in equipment and machinery rental costs (+1.9%) and energy costs (+3%).
Meanwhile, core materials—which carry the largest weight in the index at 48.5%—recorded a marginal increase of just 0.2%.
Construction Cost Index by Components
Main Category
Weight
Feb 2025
Feb 2026
Change
Core Materials
48.5%
98.9
99.2
+0.2%
Labor
29.9%
101.8
104.7
+2.8%
Equipment Machinery Rental
19.0%
102.2
104.2
+1.9%
Energy
2.5%
131.0
134.9
+3.0%
Index
100%
101.1
102.5
+1.4%
Data by sector showed a YoY increase in both residential and non-residential construction costs in February 2026. Residential sector (77.5% weight) went up 1.4%, mainly driven by labor costs (+2.7%), along with higher equipment and energy costs.
Non-residential sector moved up 1.5%, with labor costs recording the fastest growth (+3%), in addition to higher equipment and energy costs.
Core materials remained relatively stable across both sectors, which helped limit the overall increase in construction costs.
Construction Cost Index by Sector
Category
Weight
Feb 2025
Feb 2026
Change
Residential Sector
Core Materials
37.5%
99.0
99.3
+0.3%
Labor Costs
23.0%
101.8
104.6
+2.7%
Equipment Rental
14.9%
102.2
104.1
+1.8%
Energy
2.0%
131.0
134.9
+3.0%
Total Residential
77.5%
101.2
102.5
+1.4%
Non-Residential Sector
Core Materials
11.0%
98.6
98.8
+0.2%
Labor Costs
6.9%
102.0
105.0
+3.0%
Equipment Rental
4.1%
102.2
104.6
+2.3%
Energy
0.6%
131.0
134.9
+3.0%
Total Non-Residential
22.5%
101.0
102.5
+1.5%
Saudi Arabia’s Construction Cost Index rose by 1.4% in February 2026 compared to the same period in 2025.
The index hit 102.5 points (base year 2023), up from 101.1 points in February 2025, according to data from the General Authority for Statistics.
The increase was mainly driven by a rise in construction costs for the residential sector (+1.4%) and the non-residential sector (+1.5%).
The index measures changes in construction costs over time based on a basket of building materials and construction services, and is widely used by planners and researchers.
Construction Cost Index
Period
Index (Points)
Annual Change
January 2025
101.0
+1.0%
February
101.1
+0.9%
March
101.2
+1.0%
April
101.2
+1.0%
May
101.3
+1.2%
June
101.2
+1.1%
July
101.7
+0.7%
August
101.8
+0.7%
September
101.8
+0.7%
October
101.7
+1.0%
November
101.8
+1.0%
December
101.9
+1.2%
January 2026
102.4
+1.4%
February
102.5
+1.4%
The year-on-year (YoY) increase in the index was mainly driven by higher labor costs, which rose by 2.8%, along with increases in equipment and machinery rental costs (+1.9%) and energy costs (+3%).
Meanwhile, core materials—which carry the largest weight in the index at 48.5%—recorded a marginal increase of just 0.2%.
Construction Cost Index by Components
Main Category
Weight
Feb 2025
Feb 2026
Change
Core Materials
48.5%
98.9
99.2
+0.2%
Labor
29.9%
101.8
104.7
+2.8%
Equipment Machinery Rental
19.0%
102.2
104.2
+1.9%
Energy
2.5%
131.0
134.9
+3.0%
Index
100%
101.1
102.5
+1.4%
Data by sector showed a YoY increase in both residential and non-residential construction costs in February 2026. Residential sector (77.5% weight) went up 1.4%, mainly driven by labor costs (+2.7%), along with higher equipment and energy costs.
Non-residential sector moved up 1.5%, with labor costs recording the fastest growth (+3%), in addition to higher equipment and energy costs.
Core materials remained relatively stable across both sectors, which helped limit the overall increase in construction costs.
Construction Cost Index by Sector
Category
Weight
Feb 2025
Feb 2026
Change
Residential Sector
Core Materials
37.5%
99.0
99.3
+0.3%
Labor Costs
23.0%
101.8
104.6
+2.7%
Equipment Rental
14.9%
102.2
104.1
+1.8%
Energy
2.0%
131.0
134.9
+3.0%
Total Residential
77.5%
101.2
102.5
+1.4%
Non-Residential Sector
Core Materials
11.0%
98.6
98.8
+0.2%
Labor Costs
6.9%
102.0
105.0
+3.0%
Equipment Rental
4.1%
102.2
104.6
+2.3%
Energy
0.6%
131.0
134.9
+3.0%
Total Non-Residential
22.5%
101.0
102.5
+1.5%
