Saudi Construction Costs Up 2.3% in July 2026

Construction costs in Saudi Arabia continued their gradual climb in July 2026, with the Construction Cost Index (CCI) rising 2.3% compared with July 2025, The index reached 104.0 points, up from 101.7 points a year earlier, based on 2023 as the reference year.

On a monthly basis, the index held steady at 104.0 points, unchanged from June 2026, pointing to stable cost conditions in the short term even as annual pressures persist.

The breakdown showed residential construction costs rising 2.2% year-on-year, while non-residential costs increased by 2.6%. The overall annual gain was driven mainly by higher equipment and machinery rental costs, up about 4.5%, followed by energy costs at around 3% and labor costs at roughly 1.5%. Basic materials, which make up about 48.5% of the index basket, rose around 1.8%.

Why it matters

The steady upward trend reflects continued activity across building and infrastructure projects in the Kingdom. For contractors, developers, and households planning new builds or renovations, the figures signal that input costs remain slightly higher than a year ago, though the flat monthly reading suggests near-term stability.

It is worth noting that the CCI is a statistical indicator only. It does not set official fees for permits or government services, nor does it provide per-square-meter prices for specific projects. Actual costs for materials, labor, and contracts vary by project, region, specification, and private agreement, and no unified official price table is published within the index. The CCI is released monthly as a reference tool for tracking cost trends rather than as a binding tariff.

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