‎Saudi construction cost index rises 2.2% in September

‎Saudi construction cost index rises 2.2% in September ‎Saudi construction cost index rises 2.2% in September

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Saudi Arabia’s construction cost index (CCI) rose 2.2% year on year (YoY) to 104 points in September, compared with 101.8 points a year earlier, the General Authority for Statistics (GASTAT) said.

The index, based on 2023 as the base year, measures changes in the costs of construction materials and services over time.

Residential construction costs rose 2.1% YoY in September, while non-residential costs increased 2.6%, GASTAT said.

Construction Cost Index

Period

Index (Points)

YoY Change

January 2026

102.4

1.4%

February

102.5

1.4%

March

103.2

2%

April

103.7

2.4%

May

103.9

2.6%

June

104

2.7%

July

104

2.3%

August

104

2.3%

September

104

2.2%

The overall increase was driven mainly by a 4.4% rise in equipment and machinery rental costs, a 3% increase in energy costs, and a 1.6% rise in labor costs.

Basic materials, which account for 48.5% of the index, recorded a 1.7% increase.

Construction Cost Index by Components

Main Categories

Weight

Sept. 2025

Sept. 2026

Change

Basic Materials

48.5

98.96

100.67

1.7%

Labor

29.9

103.38

105.08

1.6%

Equipment Machinery Rental

19.0

103.07

107.64

4.4%

Energy

2.5

131.02

134.93

3%

Index

48.5

101.77

104.05

2.2%

Residential construction costs, which account for 77.5% of the index, rose 2.1% YoY, driven by a 4.1% increase in equipment and machinery rental costs, a 3% rise in energy costs, a 1.5% increase in labor costs, and a 1.7% rise in basic materials costs.

Non-residential construction costs increased 2.6% YoY, reflecting a 5.8% rise in equipment and machinery rental costs, alongside increases of 3.0% in energy costs, 2.0% in labor costs and 1.8% in basic materials costs.

Construction Cost Index by Sector

Main Categories

Weight

Sept. 2025

Sept. 2026

Change

Residential Sector

77.5%

101.83

104

2.1%

Basic Materials

37.5%

99.06

100.75

1.7%

Labor Costs

23%

103.44

105.03

1.5%

Equipment Machinery Rental

14.9%

103.07

107.25

4.1%

Energy

2%

131.02

134.93

3%

Non-Residential Sector

22.5%

101.54

104.2

2.6%

Basic Materials

11%

98.63

100.42

1.8%

Labor Costs

6.9%

103.18

105.27

2%

Equipment Machinery Rental

4.1%

103.08

109.06

5.8%

Energy

0.6%

131.02

134.93

3%

Index

100%

101.77

104.05

2.2%

 

‎

Saudi Arabia’s construction cost index (CCI) rose 2.2% year on year (YoY) to 104 points in September, compared with 101.8 points a year earlier, the General Authority for Statistics (GASTAT) said.

The index, based on 2023 as the base year, measures changes in the costs of construction materials and services over time.

Residential construction costs rose 2.1% YoY in September, while non-residential costs increased 2.6%, GASTAT said.

Construction Cost Index

Period

Index (Points)

YoY Change

January 2026

102.4

1.4%

February

102.5

1.4%

March

103.2

2%

April

103.7

2.4%

May

103.9

2.6%

June

104

2.7%

July

104

2.3%

August

104

2.3%

September

104

2.2%

The overall increase was driven mainly by a 4.4% rise in equipment and machinery rental costs, a 3% increase in energy costs, and a 1.6% rise in labor costs.

Basic materials, which account for 48.5% of the index, recorded a 1.7% increase.

Construction Cost Index by Components

Main Categories

Weight

Sept. 2025

Sept. 2026

Change

Basic Materials

48.5

98.96

100.67

1.7%

Labor

29.9

103.38

105.08

1.6%

Equipment Machinery Rental

19.0

103.07

107.64

4.4%

Energy

2.5

131.02

134.93

3%

Index

48.5

101.77

104.05

2.2%

Residential construction costs, which account for 77.5% of the index, rose 2.1% YoY, driven by a 4.1% increase in equipment and machinery rental costs, a 3% rise in energy costs, a 1.5% increase in labor costs, and a 1.7% rise in basic materials costs.

Non-residential construction costs increased 2.6% YoY, reflecting a 5.8% rise in equipment and machinery rental costs, alongside increases of 3.0% in energy costs, 2.0% in labor costs and 1.8% in basic materials costs.

Construction Cost Index by Sector

Main Categories

Weight

Sept. 2025

Sept. 2026

Change

Residential Sector

77.5%

101.83

104

2.1%

Basic Materials

37.5%

99.06

100.75

1.7%

Labor Costs

23%

103.44

105.03

1.5%

Equipment Machinery Rental

14.9%

103.07

107.25

4.1%

Energy

2%

131.02

134.93

3%

Non-Residential Sector

22.5%

101.54

104.2

2.6%

Basic Materials

11%

98.63

100.42

1.8%

Labor Costs

6.9%

103.18

105.27

2%

Equipment Machinery Rental

4.1%

103.08

109.06

5.8%

Energy

0.6%

131.02

134.93

3%

Index

100%

101.77

104.05

2.2%

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