Saudi Construction Cost Index rises 2.7% in June 2026

Saudi Arabia's CCI hits its all-time high at 104 pts in June 2026.


Saudi Arabia's Construction Cost Index (CCI) rose by 2.7% year-on-year (YoY) in June 2026, hitting its highest growth level since the General Authority for Statistics (GASTAT) began collecting the index data in January 2024.

 

The index hit 104 points (base year 2023), up from 101.2 points in June 2025, according to data from the GASTAT.

 

The increase was mainly driven by a rise in construction costs for the residential sector (2.6%) and the non-residential sector (3.1%).

 

The index measures changes in construction costs over time based on a basket of building materials and construction services, and is widely used by planners and researchers.

 

Construction Cost Index

Period

Index (Points)

YoY Change

January 2025

101.0

1.0%

February

101.1

0.9%

March

101.2

1.0%

April

101.2

1.0%

May

101.3

1.2%

June

101.2

1.1%

July

101.7

0.7%

August

101.8

0.7%

September

101.8

0.7%

October

101.7

1.0%

November

101.8

1.0%

December

101.9

1.2%

January 2026

102.4

1.4%

February

102.5

1.4%

March

103.2

2.0%

April

103.7

2.4%

May

103.9

2.6%

June

104

2.7%

 
 

CCI’s annual hike was mainly driven by higher equipment and machinery rental costs (+5%), energy costs (+3%), and labor costs (+2.6%).

 

Meanwhile, core materials (largest weight in the index at 48.5%) recorded an increase of 1.8% YoY.

 

Construction Cost Index by Components   

Main Categories

Weight

June 2025

June 2026

Change

Basic Materials

48.5%

98.8

100.6

1.8%

Labor

29.9%

102.3

105.0

2.6%

Equipment & Machinery Rental

19.0%

102.4

107.5

5.0%

Energy

2.5%

131.0

134.9

3.0%

CCI

100%

101.2

104.0

+2.7%

 

Data by sector showed a YoY increase in both residential and non-residential construction costs in June 2026. The residential sector (77.5% weight) rose 2.6%, mainly driven by equipment and machinery rental costs (+4.5%), along with higher energy costs (+3%), labor costs (+2.5%) and basic materials (+1.8%).

 

The non-residential sector moved up 3.1% YoY, mainly driven by the rise in equipment & machinery rental costs (+6.7%), as well as the increase in energy and labor costs (+3% each) and basic materials (1.9%).

 

Construction Cost Index by Sector   

Main Categories

Weight

June 2025

June 2026

Change

Residential Sector

77.5%

101.3

103.9

2.6%

Basic Materials

37.5%

98.9

100.7

1.8%

Labor Costs

23.0%

102.4

104.9

2.5%

Equipment & Machinery Rental

14.9%

102.5

107.1

4.5%

Energy

2.0%

131.0

134.9

3.0%

Non-Residential Sector

22.5%

101.0

104.1

3.1%

Basic Materials

11.0%

98.4

100.3

1.9%

Labor Costs

6.9%

102.1

105.2

3.0%

Equipment & Machinery Rental

4.1%

102.2

109.1

6.7%

Energy

0.6%

131.0

134.9

3.0%

CCI

100%

101.2

104

2.7%

 

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