The construction cost index in Saudi Arabia rose in May 2026 by 2.6% year-over-year compared to the same month in 2025, amid continued pressures on inputs across the construction sector’s various activities, according to data from the General Authority for Statistics.
The data indicated that this increase in construction costs resulted from a 2.5% increase in construction costs in the residential sector, alongside a 3% rise in costs in the non-residential sector during the same period.
The residential sector saw a rise in costs driven by a 4.7% increase in equipment and machinery rental rates, which was most clearly reflected in the cost of equipment rented with an operator, which rose by 6.3%. Labor costs also rose by 2.5%, coinciding with a rise in energy prices of approximately 3%.
In the same context, the cost of basic materials rose by 1.6%, resulting from a 3.6% increase in the prices of lumber and carpentry work, in addition to a 2.6% rise in the prices of other building materials.
As for the non-residential sector, it also saw an annual increase in costs of 3%, driven by a 6.7% rise in equipment and machinery rental costs, including an 8.5% increase in the cost of equipment with an operator.
Labor costs in the non-residential sector also rose by 3%, alongside a similar increase in energy prices, while basic materials recorded a 1.6% increase, driven by a 3.7% rise in prices for other construction materials and a 2.3% increase in prices for lumber and carpentry.

On a monthly basis, the construction cost index rose by 0.2% in May 2026 compared to April of the same year, indicating limited movement in price levels during the period.
This monthly increase resulted from a 0.2% rise in residential sector costs, along with a 0.3% rise in non-residential sector costs.