RIYADH — Saudi Arabia’s construction costs increased by 2.2 percent year-on-year in September 2026, driven by higher costs in both residential and non-residential construction, according to the General Authority for Statistics (GASTAT). The authority’s Construction Cost Index (CCI) report showed that non-residential construction costs rose by 2.6 percent, while residential construction costs increased by 2.1 percent compared with September 2025. In the residential sector, the annual increase was driven by a 1.7 percent rise in basic material costs, including a 3.5 percent increase in timber and joinery prices. Equipment and machinery rental costs rose by 4.1 percent, driven by a 5.5 percent increase in rental costs for equipment and machinery with an operator. Labor costs increased by 1.5 percent, while energy costs rose by 3 percent. **media[2783697]** In the non-residential sector, equipment and machinery rental recorded the largest increase among the main cost components at 5.8 percent, driven by a 7.2 percent rise in rental costs for equipment and machinery with an operator. Labor costs increased by 2 percent, while energy costs rose by 3 percent. Basic material costs in non-residential construction increased by 1.8 percent, driven by a 4.3 percent rise in other building material prices and a 2.1 percent increase in timber and joinery prices. On a monthly basis, the overall Construction Cost Index remained unchanged in September compared with August 2026, reflecting stable costs in both residential and non-residential construction. According to GASTAT, the index tracks price movements across 51 construction input items, with data collected monthly from 13 regions through field visits to contractors’ offices, engineering offices and construction material sales establishments. The index uses 2023 as its base year and is published monthly.