Saudi Construction Cost Index Up 2.3% in July 2026

Saudi Living reports that the Kingdom's Construction Cost Index (CCI) rose 2.3% year-on-year in July 2026 compared with July 2025, reaching 104.0 index points against a base year of 2023 (=100). On a month-on-month basis, the index held steady at 104.0 points, unchanged from June 2026.

The index is published monthly by the General Authority for Statistics and tracks prices across 51 construction input items — including materials, labor, equipment rentals, energy and related services — collected from all regions of the Kingdom. The residential sub-index rose 2.2% year-on-year, while the non-residential sub-index increased 2.6%.

What is driving the increase

The main contributors to higher costs during 2026 have been equipment and machinery rental, energy and labor. Earlier data from April 2026 showed rental costs up around 5.1%, energy about 3%, and labor roughly 2.8% year-on-year, and these categories remain the key drivers behind the July increase. The index has followed a steady upward trend, moving from 102.5 points in February 2026 to 103.7 in April and 104.0 in June and July.

Why it matters

For residents and businesses, the rise signals higher input prices for building and infrastructure projects, affecting budgets for materials, labor, equipment rentals and energy across both public and private sectors. The CCI is widely used for cost estimation, contract pricing and budget planning, including for projects funded through government platforms.

The index itself does not set or collect fees and carries no permit or validity period. Each monthly release serves as a statistical reference for that month and remains a historical benchmark until updated by newer data.

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