Industry
From The Report: Saudi Arabia 2020
View in Online Reader
Industry is widely regarded as a promising area for business growth that can provide additional private sector employment for citizens in the decades ahead. The sector is embarking on an agenda based on Industry 4.0, a more efficient and educated workforce, and investment and skills transfer from the private sector to support industrial clusters, expand mining operations and further leverage petrochemicals activity. The industrial sector is guided by the National Industrial Development and Logistics Programme. This chapter contains interviews with Bandar Alkhorayef, Minister of Industry and Mineral Resources; Ibrahim Almojel, CEO, Saudi Industrial Development Fund; and Khalid Al Salem, Director-General, Saudi Authority for Industrial Cities and Technology Zones.
Articles from this Chapter
Alternative engine: Industrial operations are pegged to drive future non-oil growth and provide attractive employment for citizens
Coordinated strategy: Bandar Alkhorayef, Minister of Industry and Mineral Resources, on enhancing local industrial activities through policy-making, technology and investmentOBGplus
Interview:Bandar Alkhorayef How can advanced technologies facilitate the development of high-value-added industries? BANDAR ALKHORAYEF: A healthy local manufacturing industry is important for the economy, as it has large economic multipliers and drives other value-added sectors. The digital transformation is shifting the centre of competition in manufacturing from cost reduction to innovation and intellectual contribution, and we believe this will enhance the value of domestic manufacturing…
Blueprint for success: The National Industrial Development and Logistics Programme lays the foundation for Saudi Arabia’s economic visionOBGplus
Saudi Arabia is not unfamiliar with the idea that if it wants to build a thriving society for generations to come it must not only make the most of its vast hydrocarbon resources, but also look beyond the oil and gas sector to build a multifaceted industrial economy. The launch of Saudi Vision 2030 in April 2016 galvanised the nation with a bold reimagining of how Saudi people could transform the way they live and work. In order to create a clear route to delivery, the government created…
Financing growth: Ibrahim Almojel, CEO, Saudi Industrial Development Fund (SIDF), on how diversified investments can boost developmentOBGplus
Interview:Ibrahim Almojel What are the key priorities of the National Industrial Development and Logistics Programme (NIDLP)? IBRAHIM ALMOJEL: The NIDLP is one of the 13 Vision Realisation Programmes that support an ambitious economic diversification plan, aiming to transform the Kingdom into a leading industrial powerhouse and international logistics hub. The programme includes the development of export activities aimed at leveraging the Kingdom’s natural resources and its location at the…
Buried treasure: Mining clusters support expansion, while new opportunities emerge for private firmsOBGplus
As part of the Kingdom’s broader economic diversification strategy, billions of dollars in public and private investments have been allocated to develop the mining industry in recent years. The driving force behind the sector’s expansion is the Saudi Arabian Mining Company (Ma’aden), which is majority owned by the Public Investment Fund (PIF) – the country’s sovereign wealth fund – and listed on the Saudi Stock Exchange (Tadawul). The diversified business, which is active in the…
Strong partnerships: Khalid Al Salem, Director-General, Saudi Authority for Industrial Cities and Technology Zones (MODON), on leveraging existing capabilities and new technologies to support growthOBGplus
Interview:Khalid Al Salem In what ways are modern technologies such as artificial intelligence improving productivity within manufacturing plants and smart cities? KHALID AL SALEM: Recently, MODON launched the National Productivity Programme as an initiative within the National Industrial Development and Logistics Programme, in partnership with the Saudi Industrial Development Fund and the King Abdulaziz City for Science and Technology. The aim is to help industrial companies with digital transformation…
Chemical reaction: Domestic consolidation and international partnerships provide support to the petrochemicals industryOBGplus
Saudi Arabia is making efforts to consolidate and expand its petrochemicals industry through a series of new mergers and partnership deals. By far the biggest development in the sector was the finalisation of an agreement in March 2020 for the purchase by Saudi Aramco of a 70% stake in SABIC. The proceeds from the deal, which stand at $69bn, will go to the Kingdom’s sovereign wealth fund, the Public Investment Fund (PIF). This comes in conjunction with the $25.6bn the PIF is set to receive…
Catalysed diversification: Industrial clusters are identified as the vehicle to bring benefits to strategic manufacturing segmentsOBGplus
A key objective in Saudi Arabia’s Vision 2030 national development strategy is the creation of a sustainable, competitive and diversified manufacturing ecosystem driven by private sector activity. The achievement of this objective is underpinned by the National Industrial Strategy (NIS), which outlines a programme to boost domestic manufacturing and exports by nurturing the development of strategic industries through the creation of specialised manufacturing clusters. Clustered Development A…
New streams: Funding to industry is increased and extended to the nascent mining and mineral extraction sectorOBGplus
The Saudi Industrial Development Fund (SIDF) was formed in 1974 and has played a key role in supporting the Kingdom’s industrial development, providing soft loans that helped the country’s manufacturing pioneers through the hard first years in business and subsequently supported their growth. In January 2019 SIDF’s focus was realigned more closely with Saudi Vision 2030, the national development blueprint, and the National Industrial Development and Logistics Programme (NIDLP). The…
