Construction Costs in Saudi Arabia Rise 2.2% Annually in September

The construction cost index in Saudi Arabia rose by 2.2% year-on-year during September 2026, reaching 104.05 points compared to 101.77 points in the same month of 2025, according to General Authority for Statistics data reported by Amlak newspaper.

The increase was driven by a 4.4% rise in equipment and machinery rental costs, as its index increased from 103.07 points to 107.64 points, carrying a weight of 19.0 in the index. Energy costs also rose 3.0% to 134.93 points, basic materials 1.7% to 100.67 points with a weight of 48.5, and labor 1.6% to 105.08 points with a weight of 29.9.

At the sector level, the residential sector index rose 2.1% to 104.00 points, representing the largest weight at 77.5%, while the non-residential sector rose 2.6% to 104.20 points with a weight of 22.5%. The increase in the non-residential sector is mainly attributed to equipment and machinery rental, which grew 5.8% within the sector.

The index recorded an upward trajectory during 2026, starting January at 102.4 points with an annual increase of 1.4%, reaching 104.0 points in June at 2.7%, then stabilizing at 104.0 points in July and August at 2.3%, to close September at 104.05 points at 2.2%. The index measures the change in costs for a basket of building materials and construction services over two time periods, and is relied upon in planning and studies.

What Do These Terms Mean?

Index Number: A statistical indicator that measures the change in a variable such as costs or prices between two time periods.

Base Year: The year against which the index is compared, often set at a value of 100 points.

Relative Weight: The importance of each item within the index, determined according to its share of total costs.

Construction Cost: Total expenditures on building materials, labor, equipment, and energy required to execute a project.