The construction cost index in Saudi Arabia rose 2.3 per cent year-on-year in August, driven by higher costs in both the residential and non-residential sectors.

Construction costs in the residential sector increased 2.1 per cent from a year earlier, while costs in the non-residential sector rose 2.6 per cent, according to data from General Authority for Statistics.

In the residential sector, basic material costs rose 1.8 per cent, led by a 2.0 per cent increase in metal product prices. Equipment and machinery rental costs increased 4.1 per cent, including a 5.6 per cent rise in the cost of renting equipment and machinery with operators. Labour costs rose 5.1 per cent, while energy prices increased 3 per cent, it stated.

In the non-residential sector, equipment and machinery rental costs increased 5.8 per cent, driven by a 7.2 per cent rise in the cost of renting equipment and machinery with operators. Labour costs too witnessed a spike rising two per cent, while the energy prices increased by three per cent.

Basic material costs in the non-residential sector rose 1.8 per cent, reflecting a 4.3 per cent increase in prices of other construction materials and a 2.1 per cent rise in timber and carpentry prices, it added.