Saudi Arabia’s Construction Cost Index rose by as much as 2.6% in May 2026 compared to the same month in 2025.
This is considered the highest growth on record since the General Authority for Statistics (GASTAT) began collecting the index data in January 2024.
The index hit 103.9 points (base year 2023), up from 101.3 points in May 2025, according to data from GASTAT.
The increase was mainly driven by a rise in construction costs for the residential sector by 2.5% and the non-residential sector by 3.0%.
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)
YoY 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%
March
103.2
2.0%
April
103.7
2.4%
May
103.9
2.6%
The year-on-year (YoY) increase in the index was mainly driven by higher equipment and machinery rental costs (+5.1%), energy costs (+3%), and labor costs (+2.6).
Meanwhile, core materials, which carry the largest weight in the index at 48.5%, recorded an increase of 1.6%.
Construction Cost Index by Components
Main Sectors
Weight
May 2025
May 2026
Change
Basic Materials
48.5 %
98.9
100.5
1.6%
Labor
29.9 %
102.2
104.9
2.6%
Equipment Machinery Rental
19.0 %
102.4
107.6
5.1%
Energy
2.5 %
131.0
134.9
3.0%
Index
100.0 %
101.3
103.9
2.6%
Data by sector showed a YoY increase in both residential and non-residential construction costs in May 2026. The residential sector (77.5% weight) rose 2.5%, mainly driven by higher equipment and machinery rental costs (+4.7%), energy costs (+3%), labor costs (+2.5%) and basic materials (+1.6%).
The non-residential sector increased 3.0% YoY, supported by the rise in equipment machinery rental costs (+6.7%), along with higher energy and labor costs (+3% each) and basic materials (+1.6%).
Construction Cost Index by Sector
Main Categories
Weight
May 2025
May 2026
Change
Residential Sector
77.5 %
101.3
103.9
2.5%
Basic Materials
37.5 %
99.0
100.6
1.6%
Labor Costs
23.0 %
102.3
104.9
2.5%
Equipment Machinery Rental
14.9 %
102.4
107.2
4.7%
Energy
2.0 %
131.0
134.9
3.0%
Non-Residential Sector
22.5 %
101.0
104.0
3.0%
Basic Materials
11.0 %
98.6
100.1
1.6%
Labor Costs
6.9 %
102.1
105.2
3.0%
Equipment Machinery Rental
4.1 %
102.2
109.1
6.7%
Energy
0.6 %
131.0
134.9
3.0%
Index
100.0 %
101.3
103.9
2.6%
Saudi Arabia’s Construction Cost Index rose by as much as 2.6% in May 2026 compared to the same month in 2025.
This is considered the highest growth on record since the General Authority for Statistics (GASTAT) began collecting the index data in January 2024.
The index hit 103.9 points (base year 2023), up from 101.3 points in May 2025, according to data from GASTAT.
The increase was mainly driven by a rise in construction costs for the residential sector by 2.5% and the non-residential sector by 3.0%.
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)
YoY 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%
March
103.2
2.0%
April
103.7
2.4%
May
103.9
2.6%
The year-on-year (YoY) increase in the index was mainly driven by higher equipment and machinery rental costs (+5.1%), energy costs (+3%), and labor costs (+2.6).
Meanwhile, core materials, which carry the largest weight in the index at 48.5%, recorded an increase of 1.6%.
Construction Cost Index by Components
Main Sectors
Weight
May 2025
May 2026
Change
Basic Materials
48.5 %
98.9
100.5
1.6%
Labor
29.9 %
102.2
104.9
2.6%
Equipment Machinery Rental
19.0 %
102.4
107.6
5.1%
Energy
2.5 %
131.0
134.9
3.0%
Index
100.0 %
101.3
103.9
2.6%
Data by sector showed a YoY increase in both residential and non-residential construction costs in May 2026. The residential sector (77.5% weight) rose 2.5%, mainly driven by higher equipment and machinery rental costs (+4.7%), energy costs (+3%), labor costs (+2.5%) and basic materials (+1.6%).
The non-residential sector increased 3.0% YoY, supported by the rise in equipment machinery rental costs (+6.7%), along with higher energy and labor costs (+3% each) and basic materials (+1.6%).
Construction Cost Index by Sector
Main Categories
Weight
May 2025
May 2026
Change
Residential Sector
77.5 %
101.3
103.9
2.5%
Basic Materials
37.5 %
99.0
100.6
1.6%
Labor Costs
23.0 %
102.3
104.9
2.5%
Equipment Machinery Rental
14.9 %
102.4
107.2
4.7%
Energy
2.0 %
131.0
134.9
3.0%
Non-Residential Sector
22.5 %
101.0
104.0
3.0%
Basic Materials
11.0 %
98.6
100.1
1.6%
Labor Costs
6.9 %
102.1
105.2
3.0%
Equipment Machinery Rental
4.1 %
102.2
109.1
6.7%
Energy
0.6 %
131.0
134.9
3.0%
Index
100.0 %
101.3
103.9
2.6%
