RIYADH: Rising diesel prices and higher equipment rental rates pushed up building costs in Saudi Arabia by 0.7 percent year on year in July, official data showed.
Figures from the General Authority for Statistics also showed the residential sector, which carries a significant weight in the Construction Cost index, climbed 0.7 percent from a year earlier, while non-residential building costs rose by 0.6 percent.
Equipment and machinery rentals jumped 1.8 percent, driven by a 2.5 percent increase in unoperated equipment rentals.
This comes as Saudi Arabia’s Vision 2030 giga-projects amplify demand for labor and materials.
Similar trends are seen across the region, though at different paces, with the UAE’s diversified project mix and stronger local supply chains helping to temper cost pressures.
