RIYADH: Saudi Arabia’s construction sector maintained stable cost growth in February, with the index rising 1.4 percent year on year amid steady increases in residential and non-residential building expenses, official data showed.
According to data from the General Authority for Statistics, the Kingdom’s Construction Cost Index rose to 102.5 in February, up from 102.4 in January and 101.1 a year earlier.
The steady momentum in Saudi Arabia’s construction sector aligns with broader trends across the Gulf Cooperation Council, where countries are accelerating efforts to diversify their economies away from hydrocarbons.
Last year, property consultant Knight Frank projected that the Kingdom’s construction output value will reach $191 billion in 2029, marking a 29 percent increase compared to 2024.
In its latest report, GASTAT said: “The CCI recorded a 1.4 percent increase in February 2026 compared to the corresponding month of the previous year.”
It added: “This increase is mainly attributed to a 1.4 percent rise in construction costs for the residential sector and a 1.5 percent rise in construction costs for the non-residential sector.”
In the residential sector, labor costs recorded a year-on-year rise of 2.7 percent in February, while expenses for renting equipment and machinery increased by 1.8 percent.
Energy prices in the residential sector also rose by 3 percent year on year.
Prices of basic materials edged up by 0.3 percent, reflecting a 1.2 percent increase in plastic and glass products and a 1.1 percent rise in timber and joinery.
In the non-residential sector, labor costs increased by 3 percent, while expenses for renting equipment and machinery rose by 2.3 percent.
According to the report, energy costs in the non-residential sector rose by 3 percent year on year in February, while basic material costs edged up by 0.2 percent over the same period.
“CCI for February 2026 increased by 0.1 percent compared to January 2026, mainly attributed to a 0.1 percent rise in costs for the residential sector and a 0.1 percent increase in costs for the non-residential sector,” added GASTAT.
The CCI tracks changes in construction input costs across 51 items, with monthly price data collected from 13 regions through surveys of contractors, engineering firms, and suppliers. The index uses 2023 as its base year and is published monthly.
Source: www.arabnews.com