Interview: Mohamed El Samman, CEO, Rajhi Invest, on the productivity- driven, long-term growth of non-oil sectors
In what ways is the Kingdom’s steel and metals industries evolving as foundational enablers of industrial diversification?
MOHAMED EL SAMMAN: The metals and steel industries are, by their nature, foundational to any country’s economic development. Under the Kingdom’s broader industrial and localisation agenda, these materials are no longer viewed only as construction inputs; they are core enablers across a wide spectrum of sectors – from industrial manufacturing to logistics, warehousing, shipbuilding and flat-steel applications. They sit at the heart of almost every value chain that supports development and industrialisation. As national plans become more ambitious, scale becomes increasingly important. Consolidation and the creation of larger champions allow producers to rationalise raw material pricing, optimise capacity and capture economies of scale. That, in turn, strengthens the ecosystem and positions it to meet the pace of development the country is targeting.
What shifts are anticipated for the downstream in terms of pricing and long-term supply security with consolidation shaping the steel ecosystem?
EL SAMMAN: With steady improvement and greater consolidation, the downstream segment can streamline production and delivery in a way that was not possible when production was more fragmented. Larger, integrated players typically manage logistics and supply chains more efficiently, especially when operating multiple facilities across the country. That leads to more predictable delivery, better capacity planning and more rational production cycles. For downstream, this translates into more disciplined capacity planning, more rational pricing as costs become better managed, and more efficient logistics and supply chains that improve delivery times. It also supports greater import replacement and local value creation as domestic supply becomes more reliable.
How do you see the prospects for scaling consumer goods manufacturing as domestic consumption increases and industrial licensing expands?
EL SAMMAN: In consumer goods – especially capital goods and home appliances – three factors are critical: research and development (R&D) capability, skilled labour and the sector’s ability to consolidate and decarbonise. The biggest challenge is competition from low-cost imports. To offer true value for money and meet the needs of a young, quality-conscious population, domestic producers need stronger in-house R&D and design capabilities. That is essential not only to compete on cost but also on convenience, functionality and product relevance. Skilled labour is the second enabler. Building local talent with embedded technical knowledge, whether in R&D, design or execution, must happen step by step. Regulators and national programmes have already set many of the right initiatives in motion but scaling talent in line with automation and advanced manufacturing is a continuous effort. Consolidation and decarbonisation also matter, because larger players have the resources to invest in technology, innovation and circular-economy practices that strengthen longterm competitiveness.
Which emerging non-oil sectors are positioned to deliver long-term, productivity-driven growth?
EL SAMMAN: Several sectors stand out. Real estate development, tourism and mining are all poised for long-term growth given national priorities and resource endowments. In addition, consumer-driven industries have enormous potential. The population is young, purchasing power is strong and the Kingdom continues to attract people due to its growing economy and quality of life. This creates a large, selective and increasingly sophisticated base of captive demand, which is an ideal foundation for non-oil industries that can later scale to export markets.
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