Saudi Arabia's Construction Cost Index Increases 2.3 Percent Year-on-Year in July 2026
Here's what it means for you.
Rising construction costs in Saudi Arabia could influence project budgets and timelines across the region.
What happened
Saudi Arabia’s Construction Cost Index rose 2.3 percent year-on-year in July 2026.
The Context
- Equipment and machinery rentals are the primary drivers of the cost increase, affecting both residential and non-residential sectors.
- Vision 2030 initiatives continue to push for extensive infrastructure development, sustaining construction activity and cost pressures.
- Energy and material costs also contributed to the rise, with energy costs increasing by 3 percent across sectors.
The Number
— This year-on-year increase in the Construction Cost Index highlights ongoing inflationary pressures that could impact project feasibility and investment decisions.
Takeaway
Expect continued fluctuations in construction costs as Saudi Arabia advances its ambitious development plans.
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Saudi Arabia’s construction costs rise 2.3% in July 2026
In July 2026, Saudi Arabia's Construction Cost Index (CCI) rose by 2.3% year-on-year, driven by increased costs in both residential and non-residential sectors, as reported by the General Authority for Statistics (GASTAT). The non-residential sector ...
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Saudi Arabia’s construction costs rise 2.3% in July 2026
In July 2026, Saudi Arabia's Construction Cost Index (CCI) rose by 2.3% year-on-year, driven by increased costs in both residential and non-residential sectors, as reported by the General Authority for Statistics (GASTAT). The non-residential sector ...
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