Saudi Arabia records 40% hike in construction materials prices

RIYADH: The prices of construction materials in Saudi Arabia jumped to record levels in July 2021 on an annual basis, Arab News reported.

Based on the nature of construction materials, the price hike ranged between 4 per cent and 40 per cent, Al-Watan newspaper reported.

The price of a tonne of national 18mm steel rebar increased to SR3,505.45 ($935), up 29.39 per cent during July 2021.

Similarly, the price of one meter of national 2.5mm electric wire increased 34.15 per cent. Romanian wood witnessed the biggest jump in prices, as it increased 40.7 per cent year-on-year.

The price hike occurred despite a rise in imports to more than SR13 billion. The Saudi banks provided around SR13.607 billion to the private sector to finance imports of building materials during the first seven months of this year, compared with SR13.442 billion during the same period last year, a 1.3 per cent increase, equivalent to SR165 million.