This is considered the highest growth on record since GASTAT began collecting the index data in January 2024
Saudi Arabia's Construction Cost Index rose by as much as 2.6% in May 2026 compared to the same month in 2025.
This is considered the highest growth on record since the General Authority for Statistics (GASTAT) began collecting the index data in January 2024.
The index hit 103.9 points (base year 2023), up from 101.3 points in May 2025, according to data from GASTAT.
The increase was mainly driven by a rise in construction costs for the residential sector by 2.5% and the non-residential sector by 3.0%.
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% |
The year-on-year (YoY) increase in the index was mainly driven by higher equipment and machinery rental costs (+5.1%), energy costs (+3%), and labor costs (+2.6).
Meanwhile, core materials, which carry the largest weight in the index at 48.5%, recorded an increase of 1.6%.
|
Construction Cost Index by Components |
||||
|
Main Sectors |
Weight |
May 2025 |
May 2026 |
Change |
|
Basic Materials |
48.5 % |
98.9 |
100.5 |
1.6% |
|
Labor |
29.9 % |
102.2 |
104.9 |
2.6% |
|
Equipment & Machinery Rental |
19.0 % |
102.4 |
107.6 |
5.1% |
|
Energy |
2.5 % |
131.0 |
134.9 |
3.0% |
|
Index |
100.0 % |
101.3 |
103.9 |
2.6% |
Data by sector showed a YoY increase in both residential and non-residential construction costs in May 2026. The residential sector (77.5% weight) rose 2.5%, mainly driven by higher equipment and machinery rental costs (+4.7%), energy costs (+3%), labor costs (+2.5%) and basic materials (+1.6%).
The non-residential sector increased 3.0% YoY, supported by the rise in equipment & machinery rental costs (+6.7%), along with higher energy and labor costs (+3% each) and basic materials (+1.6%).
|
Construction Cost Index by Sector |
||||
|
Main Categories |
Weight |
May 2025 |
May 2026 |
Change |
|
Residential Sector |
77.5 % |
101.3 |
103.9 |
2.5% |
|
Basic Materials |
37.5 % |
99.0 |
100.6 |
1.6% |
|
Labor Costs |
23.0 % |
102.3 |
104.9 |
2.5% |
|
Equipment & Machinery Rental |
14.9 % |
102.4 |
107.2 |
4.7% |
|
Energy |
2.0 % |
131.0 |
134.9 |
3.0% |
|
Non-Residential Sector |
22.5 % |
101.0 |
104.0 |
3.0% |
|
Basic Materials |
11.0 % |
98.6 |
100.1 |
1.6% |
|
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% |
|
Index |
100.0 % |
101.3 |
103.9 |
2.6% |
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