Overview:
Saudi Arabia's General Authority for Statistics reported a 2.2 percent annual increase in construction cost indices for September 2026 compared to the same month in 2025, with monthly inflation holding steady. Internationally, oil prices showed volatility near five-month highs driven by Middle East geopolitical developments, while gold retreated amid dollar fluctuations and investor anticipation of forthcoming U.S. monetary policy announcements.
Details:
Construction activity in the Kingdom continues to reflect moderate cost pressures. The General Authority for Statistics confirmed the 2.2 percent year-on-year rise in building costs, indicating stable month-on-month conditions. This moderation aligns with ongoing efforts to support the private sector, as evidenced by the Qassim Region's leadership meeting on private sector project support initiatives and the National Water Company's governance session chaired by Environment, Water and Agriculture Minister Abdulrahman bin Abdulmohsin Al-Fudaili.
Oil markets displayed mixed momentum, with Brent crude retreating 0.3 percent to USD 109.55 per barrel while West Texas Intermediate climbed 2.2 percent. Prices approached five-month highs following U.S. President Donald Trump's exemption of Russia from tariffs and sanctions, which raised concerns about increased Russian fuel exports. Gold prices fluctuated between USD 4,115 and USD 4,122 per ounce amid dollar weakness and expectations surrounding the U.S. Federal Reserve's monetary policy meeting scheduled for next week.
Wall Street closed with gains in Wednesday trading, with the Nasdaq advancing 1.05 percent and the S&P 500 rising 44.6 points. The Dow Jones later recorded a 548-point jump as healthcare stocks outperformed and technology sectors retreated. The U.S. dollar index declined as investors reassessed inflation risks linked to oil price movements and awaited the Federal Reserve's interest rate determination.
Outlook:
Investors remain focused on the U.S. Federal Reserve's upcoming monetary policy decision, which is expected to influence commodity pricing and currency movements across global markets. Saudi Arabia's construction sector will continue to be monitored for cost-inflation trends, particularly as government support for private sector projects gains momentum.