Construction Cost Growth in Saudi Arabia Slows to 2.2% in September

04:37 AM EDT, 10/22/2026 (MT Newswires) -- Saudi Arabia's annual construction cost growth moderated in September as basic materials and labor expenses for residential work declined, data from the General Authority for Statistics showed Thursday. Year-over-year construction costs in the kingdom increased by 2.2% in September, easing from a 2.3% increase in August. The residential sector construction cost index rose 2.1% year on year, similar to the previous month's figure, as a 4.1% hike in equipment rental fees and a 3% increase in energy costs continued to contribute to the index's annual rise. Conversely, basic materials costs came in at 1.7%, below August's 1.8%, while labor expenses dropped to 1.5% from 5.1% earlier. In terms of annual non-residential construction expenses, elevated equipment rental, labor, energy and basic building material costs pushed the index up 2.6%, matching the increase in August. Month over month, construction costs in the country held steady, after a 0.1% uptick in August, amid stable costs in both residential and non-residential sectors.