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JEDDAH: Saudi entrepreneurs and innovators in the industrial and mining sectors are set to gain support through a new partnership aimed at driving development, creativity, and digital transformation.

The Ministry of Industry and Mineral Resources signed a cooperation agreement with the Saudi Innovation Club to implement joint programs and initiatives as part of efforts to empower national talent in the two sectors, the ministry said in a statement on Aug. 21.

The agreement, signed under the patronage of Assistant Minister for Planning and Development Abdullah Al-Ahmari, aims to foster new developments and create opportunities for pioneers. It was finalized during a ministry meeting under the ‘Innovative Industrial and Mining Products Program’ connecting inventors with service providers, incubators, and accelerators.

This initiative aligns with the ministry’s wider strategy to encourage advancement in industrial and mining activities, boost global competitiveness, and strengthen their role in diversifying the Kingdom’s economy.

It builds upon the Innovative Industrial and Mining Products Program, first unveiled in December, which focuses on accelerating sectoral progress and driving digital evolution within these industries.

“The agreement sets a joint framework for the two parties to organize activities and initiatives that foster a culture of innovation and showcase innovators’ success stories,” the statement said.

It added that the accord opens multiple avenues of collaboration, including sharing expertise, arranging business forums, conducting workshops, and launching initiatives to empower entrepreneurs and emerging talents.

The agreement was signed by Mohammed bin Saeed Al-Dughaim, general manager of the ministry’s innovation management department, and Majid bin Mohammed bin Anzan, chairman of the Saudi Innovation Club.

The ministry emphasized that this partnership underscores its commitment to advancing creative practices, raising public awareness, and creating a supportive environment for innovators in line with the Kingdom’s economic transformation goals.

According to the ministry, the Innovative Industrial and Mining Products Program represents “a key step toward fostering innovation in the industrial and mining sectors” and reflects its commitment to developing new solutions that “support the Kingdom’s industrial transformation and stimulate the growth and sustainability of the mining sector.”

Commenting on the program when first announced, Minister of Industry and Mineral Resources Bandar Alkhorayef said the program seeks to “provide an integrated environment that enables innovators to transform their ideas into executable and competitive products locally and internationally.”

He noted that the initiative will drive advancement — a cornerstone of economic growth — and advance digital transformation in the industrial and mining sectors, the minister stated in a post on his X handle at that time.

RIYADH: Rising diesel prices and higher equipment rental rates pushed up building costs in ������Ƶ by 0.7 percent year on year in July, official data showed. 

Figures from the General Authority for Statistics also showed the residential sector, which carries a significant weight in the Construction Cost index, climbed 0.7 percent from a year earlier, while non-residential building costs rose by 0.6 percent.

Equipment and machinery rentals jumped 1.8 percent, driven by a 2.5 percent increase in unoperated equipment rentals. 

This comes as ������Ƶ’s Vision 2030 giga-projects amplify demand for labor and materials. 

Similar trends are seen across the region, though at different paces, with the UAE’s diversified project mix and stronger local supply chains helping to temper cost pressures. 

Overall, costs are climbing at varying rates. The UAE is projected to see a 2 to 5 percent rise in 2025, while ������Ƶ faces sharper inflation, with tender prices expected to surge 7.4 percent, according to a report by cost management firm Stonehaven. 

In its latest report, GASTAT stated: “This rise (in the residential sector) had a significant impact on sustaining the annual inflation rate for July 2025 due to the weight of this sector, which is 77.5 percent.” 

It added: “In the same context, energy prices increased by 9.9 percent, driven by a 27.3 percent rise in diesel fuel prices. Labor costs also rose by 1.5 percent compared to July 2024.” 

A 0.7 percent drop in basic materials costs, including a 2.1 percent decline in wood and carpentry products and a 1.9 percent fall in metal products, helped offset some of the inflationary pressure. 

Non-residential sector

The most significant push in the non-residential sector came from a 1.9 percent rise in equipment and machinery rental costs, again propelled by a 2.3 percent increase in the specific category of unoperated equipment rentals. 

Labor costs in non-residential construction increased by 1.2 percent, while energy prices jumped by the same 9.9 percent seen in the residential sector, with diesel fuel’s 27.3 percent hike again being the primary cause. 

The cost of basic materials for non-residential projects also decreased by 0.7 percent, due to a 1.9 percent decline in metal products and other building materials. 

Monthly changes  

The report also detailed month-on-month changes, indicating an acceleration in cost pressures as the summer progressed. Compared to June, residential construction costs increased by 0.4 percent in July, primarily due to a 1.1 percent rise in labor costs. 

Similarly, the non-residential sector costs saw a higher monthly increase of 0.5 percent. This was driven by a 1.3 percent rise in labor costs and a 0.8 percent increase in equipment and machinery rental fees, suggesting building momentum in cost inflation heading into the second half of the year.

The CCI is an official metric that tracks the monthly price change of essential construction inputs, including materials, labor, equipment, and energy. 

The index, which uses 2023 as the base year, tracks 60 construction input items, with data collected monthly across 13 regions from contractors, engineering firms, and suppliers.