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Construction costs rose 2.3% in August
Construction costs in Saudi Arabia increased by 2.3% year-on-year in August 2026, driven by rising prices of basic materials, labor, and energy in both residential and non-residential sectors. The non-residential sector saw an increase of 2.6%, while the residential sector grew by 2.1%. Monthly costs also experienced a slight uptick of 0.1% compared to July 2026, with notable increases in rental prices for equipment, machinery, and essential materials, alongside improving indicators in the construction and manufacturing sectors in the kingdom.
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