Manufacturing

Saudi’s new industrial strategy to drive exports to $148bn by 2030

By Pramod Kumar

October 19, 2022, 5:20 AM

Crown Prince says Saudi Arabia will become a leading industrial powerhouse that contributes to securing global supply chains

Saudi Arabia’s Crown Prince Mohammed bin Salman has launched the National Industrial Strategy, which aims to double the industrial exports value to SAR 557 billion by 2030 ($148.34 billion), state-owned Saudi Press Agency reported.

The strategy aims to promote the industrial sector and attract investment in the domestic economy, with the goal that it will lead to economic diversification and growth of gross domestic product (GDP) and non-oil exports.

The strategy focuses on 12 sub-sectors to diversify the industrial economy, with more than 800 investment opportunities worth SAR 1 trillion identified. It will also increase the total additional investments in the sector to SAR 1.3 trillion ($346.21 billion).

“Through the national industrial strategy and in partnership with the private sector, the kingdom will become a leading industrial powerhouse that contributes to securing global supply chains and exports high-tech products to the world,” Prince Mohammed said.

A governance model for the industrial sector has been developed through the formation of the Supreme Committee for Industry, headed by the crown prince, to achieve these objectives. An industrial council, including the private sector, will ensure participation in decision-making and development policies.

Furthermore, the new strategy aims to increase factories from 10,640 at present to 36,000 by 2035.

Saudi Arabia’s industrial sector has contributed more than SAR 340 billion to the GDP, creating jobs and entrepreneurship opportunities across various industrial fields.

King Salman bin Abdulaziz Al Saud said on Sunday that the country aimed to develop “promising and new sectors, support local content, facilitate the business environment, empower citizens, engage the private sector and increase the effectiveness of implementation to achieve more success and progress, and meet the aspirations and ambitions of our people”.

The king said several strategies and programmes, valued at $53.2 billion over the next decade, had been launched.

These were planned to promote infrastructure development in vital sectors, improve the quality of services and establish an infrastructure fund that will “contribute significantly” to transport, water, energy, health, education, communications and digital projects.