Industry
From The Report: Saudi Arabia 2018
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Bold strategies to use industry as an engine of economic change could see new gold mines, plastics factories and medical laboratories boost growth, prosperity and jobs. While raising the profile of private enterprise, the government is planning to inject capital into promising sectors, but it is also setting ambitious targets for itself and for industry. Though the launch of Vision 2030 coincided with a difficult year for many industries in the Kingdom, it has served to galvanise industrialists and government ministries as they work towards recovery and future growth. The shift towards privatization and the increasing focus on SMEs are both positive indicators of the government’s commitment to implement the much-needed structural changes outlined in the development plan.
This chapter contains an interview with Khalid Al Mudaifer, President and CEO, Ma’aden; Mohammed Al Badr, Managing Director, Saudi Chemical; and Khalid Al Amoudi, CEO, Saudi Red Bricks.
Articles from this Chapter
Roadmap for progress: Vision 2030 initiatives to increase private sector participation are stimulating growth
Expansive potential: Khalid Al Mudaifer, President and CEO, Ma’aden, on emerging opportunities deriving from the renewed interest in miningOBGplus
Interview:Khalid Al Mudaifer What makes the Kingdom’s mining sector attractive to local and foreign investors? KHALID AL MUDAIFER: The Kingdom of Saudi Arabia is significantly underexplored compared to other industry-leading countries, such as Australia and China. As a result, it provides huge exploration and development opportunities, which are now becoming more recognised in mining, minerals and metals industries across the world. The sector has been able to secure key upstream players,…
Expansive potential: Khalid Al Mudaifer, President and CEO, Ma’aden, on emerging opportunities deriving from the renewed interest in miningOBGplus
Interview:Khalid Al Mudaifer What makes the Kingdom’s mining sector attractive to local and foreign investors? KHALID AL MUDAIFER: The Kingdom of Saudi Arabia is significantly underexplored compared to other industry-leading countries, such as Australia and China. As a result, it provides huge exploration and development opportunities, which are now becoming more recognised in mining, minerals and metals industries across the world. The sector has been able to secure key upstream players,…
Links in the chain: Investment in local suppliers and renewable energy is poised to provide greater employment opportunitiesOBGplus
Large-scale renewable energy investments, and new rules specifying how much revenue from Saudi Aramco must be spent on domestic content, are set to drive manufacturing growth. Creating a local supply chain is at the heart of plans to install 3.5 GW of renewable energy capacity by 2020, while the In-Kingdom Total Value Add (IKTVA) programme adopted by Saudi Aramco in 2015 is designed to increase the use of local businesses and workers. “Saudi Aramco’s initiative to promote Saudiisation…
Links in the chain: Investment in local suppliers and renewable energy is poised to provide greater employment opportunitiesOBGplus
Large-scale renewable energy investments, and new rules specifying how much revenue from Saudi Aramco must be spent on domestic content, are set to drive manufacturing growth. Creating a local supply chain is at the heart of plans to install 3.5 GW of renewable energy capacity by 2020, while the In-Kingdom Total Value Add (IKTVA) programme adopted by Saudi Aramco in 2015 is designed to increase the use of local businesses and workers. “Saudi Aramco’s initiative to promote Saudiisation…
Streamlined production: Mohammed Al Badr, Managing Director, Saudi Chemical, on logistics and the localisation of pharmaceutical manufacturingOBGplus
Interview:Mohammed Al Badr What advantages have the development of industrial zones provided to manufacturers? MOHAMMED AL BADR: The main advantage of having a factory established in an industrial zone, such as Sudair, Al-Kharj and Jeddah, is having to deal with one counterpart for logistics and operations, rather than different government entities. However, industrial zones in major cities are currently congested and have limited land available, while those located in remote areas require…
Sustained development: Khalid Al Amoudi, CEO, Saudi Red Bricks, on boosting local production, and the role of the private sectorOBGplus
Interview:Khalid Al Amoudi How does the current level of domestic financing available compare to the cost of the projects that are currently in the pipeline? KHALID AL AMOUDI: I feel that low oil prices will have a very marginal effect on construction activities in the Kingdom over the short term. Construction and expansion of schools, universities, hospitals and private sector housing will not slow down significantly. A growing population and fast-paced Saudiisation in both the private and…
Mined the gap: Economic diversification is set to favour mining developmentOBGplus
Increased investment in Saudi Arabia’s mining sector looks set to lift its GDP contributions, as part of an accelerating push to diversify the economy under the Vision 2030 development plan. On April 24, 2017 Prince Khalid Al Faisal Al Saud, the governor of Makkah, formally opened a new gold mine and processing plant – the Ad Duwayhi mine, owned and operated by the Saudi Arabian Mining Company (Ma’aden) – with a production capacity of 180,000 oz per year, making it the country’s…
Mined the gap: Economic diversification is set to favour mining developmentOBGplus
Increased investment in Saudi Arabia’s mining sector looks set to lift its GDP contributions, as part of an accelerating push to diversify the economy under the Vision 2030 development plan. On April 24, 2017 Prince Khalid Al Faisal Al Saud, the governor of Makkah, formally opened a new gold mine and processing plant – the Ad Duwayhi mine, owned and operated by the Saudi Arabian Mining Company (Ma’aden) – with a production capacity of 180,000 oz per year, making it the country’s largest to date. Commercial production began in April 2016, and the mine was set to reach 100% capacity by end-2016. While data on its current output…
All together: Developing industrial clusters is expected to increase efficiency and promote cohesion in the downstream segmentOBGplus
Economic planners in Saudi Arabia are working to nurture industrial growth by identifying sectors with high potential and developing clusters of companies and expertise within them. The National Industrial Clusters Development Programme (NICDP) has been established under the supervision of the Ministry of Commerce and Investment (MoCI), and the Ministry of Energy, Industry and Mineral Resources (MEIMR) to drive forward this approach. Four areas with potential for cluster development have…
All together: Developing industrial clusters is expected to increase efficiency and promote cohesion in the downstream segmentOBGplus
Economic planners in Saudi Arabia are working to nurture industrial growth by identifying sectors with high potential and developing clusters of companies and expertise within them. The National Industrial Clusters Development Programme (NICDP) has been established under the supervision of the Ministry of Commerce and Investment (MoCI), and the Ministry of Energy, Industry and Mineral Resources (MEIMR) to drive forward this approach. Four areas with potential for cluster development have…
Innovation and expansion: Mega-complexes and mutual agreements are encouraging the development of petrochemicals productionOBGplus
In four decades the natural gas in Saudi Arabia’s oil fields has been transformed from an inconvenient by-product into essential feedstock for an industry that supports thousands of jobs and generates 15% of the country’s export revenues. Since its creation in 1976 by royal decree, Saudi Arabia Basic Industries Corporation (SABIC) has grown into the largest non-oil industrial company in the Middle East with 40,000 employees worldwide. As SABIC has expanded, so have many other petrochemicals…
Innovation and expansion: Mega-complexes and mutual agreements are encouraging the development of petrochemicals productionOBGplus
In four decades the natural gas in Saudi Arabia’s oil fields has been transformed from an inconvenient by-product into essential feedstock for an industry that supports thousands of jobs and generates 15% of the country’s export revenues. Since its creation in 1976 by royal decree, Saudi Arabia Basic Industries Corporation (SABIC) has grown into the largest non-oil industrial company in the Middle East with 40,000 employees worldwide. As SABIC has expanded, so have many other petrochemicals…
Significant backing: The government is providing expanded financial services to support manufacturing developmentOBGplus
In its drive to diversify the economy and reduce its reliance on oil export revenues, Saudi Arabia is backing soft loans for industry using significant state allowances. In December 2016 Khalid Al Falih, the minister of energy, industry and mineral resources, announced a substantial boost in capital provided to the Saudi Industrial Development Fund (SIDF), which offers loans with comparatively favourable terms and conditions to finance the development of new industries in the Kingdom. Al…
Making deals: A number of high-profile bilateral agreements and international investments are reviving investor confidenceOBGplus
The first foreign visit of US President Donald Trump’s term saw business leaders from Saudi Arabia and the US signing nearly $400bn worth of agreements and deals. These commercial agreements were designed to foster mutual benefits and investments in both countries. King Salman bin Abdulaziz Al Saud met President Trump just over a year after the publication of Saudi Vision 2030, a period in which the government of Saudi Arabia cemented a number of high-profile bilateral agreements with key…
Making deals: A number of high-profile bilateral agreements and international investments are reviving investor confidenceOBGplus
The first foreign visit of US President Donald Trump’s term saw business leaders from Saudi Arabia and the US signing nearly $400bn worth of agreements and deals. These commercial agreements were designed to foster mutual benefits and investments in both countries. King Salman bin Abdulaziz Al Saud met President Trump just over a year after the publication of Saudi Vision 2030, a period in which the government of Saudi Arabia cemented a number of high-profile bilateral agreements with key…
Getting the goods: The trade, manufacture and export of fast-moving consumer products appear set to expand with diversification effortsOBGplus
The fast-moving consumer goods (FMCG) industry supplies Saudi shoppers with local and international brands. A select group of domestic family-owned trading businesses are suppliers for the household brand names of the global FMCG business. Through joint ventures (JVs) and subsidiaries, these regional conglomerates are involved in the manufacture, import and wholesale distribution of the goods that supply consumer demand. As Saudi Arabia looks to diversify its economy and find private sector…
Getting the goods: The trade, manufacture and export of fast-moving consumer products appear set to expand with diversification effortsOBGplus
The fast-moving consumer goods (FMCG) industry supplies Saudi shoppers with local and international brands. A select group of domestic family-owned trading businesses are suppliers for the household brand names of the global FMCG business. Through joint ventures (JVs) and subsidiaries, these regional conglomerates are involved in the manufacture, import and wholesale distribution of the goods that supply consumer demand. As Saudi Arabia looks to diversify its economy and find private sector…
