Saudi Arabia launched a new National Industry Strategy on Tuesday that aims to triple industrial output and increase the value of the kingdom's industrial exports to about $149 billion by 2030.
The strategy aims to attract investment into the sector, boost economic diversification, increase non-oil exports and grow the kingdom's gross national product, state-run news agency SPA said on Tuesday.
The new programme identifies 800 investment opportunities worth $266.2bn to provide sustainable economic returns for the kingdom by 2030.
"Through the National Industry Strategy and in partnership with the private sector, the kingdom will become a leading industrial force, contributing to securing global supply chains and exporting high-tech products to the world," said Saudi Crown Prince Mohammed bin Salman, who launched the strategy.
"We have all the enablers to become a competitive and sustainable industrial economy."
In September, business activity in the non-oil private sector economy of Saudi Arabia continued to improve as output and new orders rose sharply on robust demand, despite inflation concerns and global macroeconomic headwinds, according to the S&P Global purchasing managers’ index.
The index reading stood at 56.6 in September, down from 57.7 in August, but signalling an improvement in the health of the country's non-oil private sector economy for the 25th successive month. A reading above the neutral level of 50 indicates growth while one below it points to a contraction.
Saudi Arabia’s economy is expected to grow at the quickest pace in a decade and could be one of the world’s fastest-growing economies this year, according to the International Monetary Fund.
The kingdom’s economy grew 12.2 per cent in the second quarter, exceeding initial estimates and registering the fastest expansion in more than a decade on the back of higher oil prices.
Saudi Arabia’s GDP is forecast to expand 7.6 per cent this year after 3.2 per cent growth in 2021, according to the International Monetary Fund, while Saudi investment bank Jadwa Investment estimates output this year at 8.7 per cent and the OECD projects growth of 9.9 per cent.
The new strategy calls for increasing the number of factories in the kingdom to 36,000 by 2035, up from 10,640, SPA said.
The plan also seeks to increase the total additional investments in the sector to 1.3 trillion Saudi riyals ($345.9bn), the news agency said.
The kingdom "has big opportunities to uncover new industrial prospects that contribute to achieving sustainable growth", Bandar bin Ibrahim AlKhorayef, minister of Industry and Mineral Resources, said in a related SPA report.
The new programme will boost "investments from the private sector in the industrial sector, increase the share of non-oil exports, strengthen the industrial economy's reliance on research and innovation, focus on products with added value and increase economic diversification in the kingdom".
The strategy includes more than 136 initiatives, according to the minister.
These include initiatives for industrial goods such as specialised chemical installations and the transformation of plastics and rubber.
Other initiatives focus on enabling the industrial sector with soft loans to finance advanced manufacturing capabilities and provide incentive packages for investors.
The strategy identified, reviewed and developed policies to help empower the sector, Mr AlKhorayef said.
Work has also been done to develop special initiatives for 12 industrial activities including food, medicine, medical equipment and marine industries.
The strategy was formed keeping in mind global trends such as the Fourth Industrial Revolution, zero carbon targets and the challenges facing global supply chains, SPA said. It was developed in partnership with the private sector, including the participation of more than 300 top executives.
