Industry
From The Report: Saudi Arabia 2023
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Saudi Arabia’s industrial and mining sectors have long been singled out by the authorities as targets for expansion to support economic diversification. The Kingdom aims to attract international manufacturers, and develop the capacity of industrial small and medium-sized enterprises to strengthen domestic value chains. At the same time, the country is making efforts to upgrade its transport and logistics infrastructure, and investing in enhancing downstream capabilities to better integrate into regional and global supply chains. High oil prices in 2022 positioned Saudi Arabia as the G20’s fastest-growing economy, enabling initiatives like the National Industry Strategy and Stimulating Local Industry. With a commitment to local procurement, which could spur foreign investment, the Kingdom is poised for a transformative era of industrial growth. Abundant mineral resources and supportive regulations could position Saudi Arabia as a key player in the global green economy in the years ahead.

This chapter contains interviews with Majed Rafed Al Argoubi, CEO, Saudi Authority for Industrial Cities and Technology Zones; Bader Al Reziza, Chairman, Asharqia Chamber; and Khalid Al Salem, President, Royal Commission for Jubail and Yanbu.

Articles from this Chapter

Overview

Extracting success: The non-oil sector is creating opportunities for significant investment and a new wave of diversification
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Saudi Arabia’s industrial and mining sectors have long been singled out by the authorities as targets for expansion to support economic diversification. The Kingdom aims to attract international manufacturers, and develop the capacity of industrial small and medium-sized enterprises (SMEs) to strengthen domestic value chains. At the same time, the country is making efforts to upgrade its transport and logistics infrastructure, and investing in enhancing downstream capabilities to better integrate…

Interview

Moving ahead: Majed Rafed Al Argoubi, CEO, Saudi Authority for Industrial Cities and Technology Zones (MODON), on supporting business development and integrating companies into value chains
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Interview:Majed Rafed Al Argoubi What role will industrial cities play in implementing the National Industrial Development and Logistics Programme (NIDLP)? MAJED RAFEDAL ARGOUBI: By spearheading infrastructure development, industrial cities form the cornerstone of NIDLP implementation. MODON manages approximately 200m sq metres of developed land area, 78% of which is currently occupied. To house the industrial expansion envisioned by NIDLP, MODON plans to develop an additional 24.5m…

Analysis

Building strength: New strategies and fresh capital are expected to help increase industrial production and attract further funding
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Launched in October 2022, the National Industry Strategy (NIS) aims to promote non-oil exports and attract investment, using advanced technologies along with value-added manufacturing to drive sustainable growth and development. These are expected to supplement the traditional drivers of the Saudi industrial landscape, such as oil, basic manufacturing and petrochemicals. The NIS targets 12 industrial sectors: automotive, aviation, chemicals and specialty chemicals, construction materials, food and…

Interview

Thinking big: Bader Al Reziza, Chairman, Asharqia Chamber, on creating an ecosystem to support the growth of small businesses
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Interview:Bader Al Reziza What measures can be implemented to help small and medium-sized enterprises (SMEs) be more competitive in the global market? BADER AL REZIZA: Advances in ICT have made it easier for small enterprises to conduct business globally. They have also made it easier for such organisations to deal with challenges of scale. Further, SMEs can benefit from knowledge sharing and adjust quickly to market changes when they work closely with other firms. Even though the economy…

Interview

Business growth: Khalid Al Salem, President, Royal Commission for Jubail and Yanbu (RCJY), on attracting investment to new cities
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Interview:Khalid Al Salem To what extent are investors’ needs aligned with the Kingdom’s socio-economic objectives? KHALID AL SALEM: The RCJY has been working to leverage its competitive capabilities and value proposition elements for each sector. For the economic areas on which the RCJY’s cities focus, prospective investors are provided with advanced infrastructure in the form of feedstock networks; pre-prepared land for the development of industrial plants and production facilities;…

Analysis

Green solutions: The MENA region is poised to lead global steel decarbonisation
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As global industry seeks to reduce or eliminate its carbon footprint, a number of MENA countries are investing in green steel production to capture market share and help meet emissions targets. Industry generates 20% of global greenhouse gas emissions annually, with the steel manufacturing segment accounting for the largest share, at 7%, due in part to a reliance on coal to heat smelting furnaces. According to a September 2022 report from the Institute for Energy Economics and Financial Analysis,…