Overview
The National Industrial Strategy is a sectoral strategy launched under the vision of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Prime Minister, and it aims to build a resilient national industrial economy capable of adapting to change.[1]
It centres on transforming the Kingdom into a global industrial power by drawing on its location, resources and national companies, within the framework of Saudi Vision 2030, with specific quantitative targets for manufacturing gross domestic product, jobs and non-oil exports through 2030.[1]
Strategic Objectives and Competitive Ambition
The strategy comprises three strategic objectives rooted in building a resilient national industrial economy capable of adapting to change, on which the Kingdom's industrial policies and programs rest.[1]
This direction translates into a stated ambition for the Kingdom to join the ranks of the world's top 15 countries in industrial sector competitiveness.[3]
Quantitative Targets by 2030
The strategy sets a target for total manufacturing gross domestic product of SAR 895 billion by 2030, an indicator of the scale of expansion expected in the national industrial base.[1]
This is accompanied by a target of 2.1 million jobs in the industrial sector and non-oil exports reaching SAR 557 billion over the same horizon, linking the sector's growth to job opportunities and its export capacity.[1]
Initiatives and Industrial Opportunities
The strategy comprises 136 executive initiatives that translate the announced targets into operational measures in the industrial sector.[3]
To attract investment it relies on more than 800 industrial opportunities offered to domestic and international investors, as part of the economic diversification path addressed by the National Investment Strategy.[3]
National Industrial Development and Logistics Program
The National Industrial Development and Logistics Program was launched in 2019, and the "Made in Saudi" program is among its foremost tools for strengthening local content in the oil and non-oil sectors.[2]
Its tracks included securing global supply chains and exporting high-tech products to international markets, a direction the National Industrial Strategy continued to build on after its launch.[2]
The program supports eight special economic zones in the Kingdom, in parallel with the National Transport and Logistics Strategy, strengthening industrial and logistics investment across multiple locations.[2]
Localization and Industrial Capabilities
The program aims to raise the localization rate in the oil and gas sector to 70% and in the pharmaceutical industries to 30%, expanding the participation of national talent in the industrial value chain.[2]
Five centres for the Fourth Industrial Revolution were launched to support the adoption of modern technologies in factories and industrial services and to link production with advanced digital solutions.[2]
Mining and Mineral Resources
The value of mineral wealth in the Kingdom is estimated at more than SAR 9.4 trillion, a broad resource base that supports industrial and mining expansion.[2]
The sector is working to cut the time to issue a mining licence to 60 days and to complete the geological survey of 50% of the Arabian Shield, raising the readiness of mining opportunities for investment.[2]
Frequently Asked Questions
Q: What is the National Industrial Strategy? A: A sectoral strategy aimed at building a resilient national industrial economy and transforming the Kingdom into a global industrial power, launched under the vision of His Royal Highness the Crown Prince and Prime Minister.
Q: What are the strategy's targets by 2030? A: SAR 895 billion in total manufacturing gross domestic product, 2.1 million jobs in the industrial sector, SAR 557 billion in non-oil exports, and reaching the ranks of the top 15 countries in industrial sector competitiveness.
Q: How many initiatives and industrial opportunities does the strategy include? A: 136 initiatives and more than 800 industrial opportunities offered to attract investment.
Q: What is the relationship between the strategy and the National Industrial Development and Logistics Program? A: The program was launched in 2019 and works to strengthen local content through "Made in Saudi", secure global supply chains, export high-tech products, and support eight special economic zones.
Q: What are the localization and mining targets? A: Localizing 70% of the oil and gas sector and 30% of the pharmaceutical industries, issuing a mining licence within 60 days, and surveying 50% of the Arabian Shield geologically.
Conclusion
The National Industrial Strategy combines specific quantitative targets with existing executive frameworks, through 136 initiatives and more than 800 industrial opportunities, and links industry to logistics, mining and localization, reaching a manufacturing gross domestic product of SAR 895 billion by 2030.[1][3]
Related topics
- National visions and programmesSaudi Vision 2030: A Framework for TransformationAn introduction to Saudi Vision 2030, its social, economic and institutional themes, and the relationship between implementation programmes, long-term targets and measured results.
- TopicNational Industrial Development and Logistics Program (NIDLP)The National Industrial Development and Logistics Program (NIDLP) is one of the most important and largest programs realizing Saudi Vision 2030, launched on 28 January 2019. It aims to transform the Kingdom into a leading industrial power and a global logistics platform through four main sectors: energy, industry, mining and logistics services.
- TopicNational Investment StrategyThe National Investment Strategy is a national strategy whose launch was announced on 5 Rabi' al-Awwal 1443 AH, corresponding to 11 October 2021, and it is one of the key enablers for achieving the objectives of Saudi Vision 2030. It aims to inject investments exceeding 12 trillion riyals into the domestic economy through 2030, raise the private sector's contribution to gross domestic product to 65%, and reduce the unemployment rate to 7%.
- TopicNational Transport and Logistics StrategyThe National Transport and Logistics Strategy is a sectoral strategy launched by the Kingdom of Saudi Arabia in mid-2021 to develop the transport and logistics sector and raise its efficiency. It rests on four pillars and seeks to raise the Kingdom's ranking among the world's top 10 countries on the Logistics Performance Index by 2030.
- TopicSaudi Industrial Development FundThe Saudi Industrial Development Fund is a government fund established in 1394 AH (1974) with capital of SAR 500 million to develop the local industrial sector. Its capital increased in stages until it reached SAR 105 billion in January 2019, and today it covers the industry, mining, energy and logistics services sectors.
- TopicThe Public Investment FundThe Public Investment Fund is a Saudi fund established in 1971 CE/1391 AH under Royal Decree No. (M/24), and linked in 1436 AH/2015 CE to the Council of Economic and Development Affairs. The assets it manages exceed SAR 3.4 trillion, and its activity spans three investment portfolios and giga-projects including NEOM, Qiddiya, the Red Sea, Roshn, and Diriyah.