RIYADH: Saudi Arabia’s Construction Cost Index edged up 0.2 percent in May from the previous month, reflecting relatively stable pricing across the Kingdom’s building sector, official data showed.
According to the latest report by the General Authority for Statistics, the index was 2.6 percent higher than a year earlier, driven by increased equipment rental, labor, and energy costs in both the residential and non-residential sectors.
Residential construction costs climbed 2.5 percent annually, while the non-residential sector recorded a stronger 3 percent increase.
The increase comes amid Saudi Arabia’s ongoing push for major infrastructure and tourism projects under its Vision 2030 economic diversification plan.
Flagship developments such as Neom, Qiddiya, and the Red Sea Project continue to generate strong demand for contractors, machinery, and building materials.
