Saudi Arabia To Strengthen Global Industrial Leadership With Upcoming Forum

Saudi Arabia, in collaboration with the United Nations Industrial Development Organization (UNIDO), will host the Multilateral Industrial Policy Forum (MIPF) in October. This event highlights the Kingdom's substantial industrial transformation aligned with Vision 2030. The forum aims to expand Saudi Arabia's industrial base and establish it as a leading global industrial hub.

The Ministry of Industry and Mineral Resources in Riyadh is organising the forum. It is part of Saudi Arabia's ongoing efforts to drive industrial development. The Kingdom is implementing programs that focus on innovation, diversification, and boosting various industrial sectors. These initiatives include 12 strategic sectors identified in the National Industrial Strategy.

Beyond this strategy, Saudi Arabia has invested heavily in developing its industrial infrastructure. This includes creating industrial cities and special economic zones. The Kingdom has also fostered international cooperation to facilitate knowledge and technology transfer.

The forum will see participation from global experts and decision-makers. It serves as an ideal platform for exchanging expertise and setting best practices in industrial policies. Saudi Arabia aims to develop policies that align with international standards, thereby increasing the global competitiveness of its industrial sector.

In 2023, Saudi Arabia's industrial sector saw significant developments. These included announcing major investment opportunities in targeted sectors, issuing a license for the first Saudi-made electric car brand "Ceer", and opening the first electric vehicle manufacturing factory "Lucid". The Kingdom aims to produce over 300,000 cars annually by 2030.

Sustainable Industrial Practices

Saudi Arabia is leading initiatives for sustainable industrial practices. This includes promoting international cooperation, exchanging expertise, and adopting environmentally friendly technologies. These efforts aim to enhance the flexibility of its supply chains, aligning with the Global Supply Chain Resilience Initiative.

Attracting private sector investments is crucial for achieving the goals of the National Industrial Strategy. The focus is on enhancing integration among various sectors and their supply chains, developing infrastructure, encouraging joint investments, promoting local content, and empowering national companies through policies, financing, and training.

Future Factories Program

In July 2022, the Ministry of Industry and Mineral Resources launched the Future Factories Program. This initiative aims to transform 4,000 factories from labor-intensive models to efficient, automated operations using advanced industrial solutions. The goal is to enhance competitiveness, improve product quality, and increase exports of Saudi non-oil products.

The ministry has also made strides in improving the regulatory and legislative environment for the industrial sector. This creates an environment conducive to investments and fair competition.

Investment Goals for 2024-2025

The ministry's goals for 2024 and 2025 include attracting investments in targeted industrial sectors. They aim to reach a total investment volume of SAR451 billion. Additionally, they plan to add 1,500 products to the mandatory local content list.

The ministry also aims to increase the industrial sector's contribution to non-oil GDP to SAR412 billion and boost non-oil exports to over SAR300 billion. Moreover, they plan to launch an initiative for industrial sector governance to stimulate integration among relevant stakeholders.

The second edition of MIPF will be hosted under the theme "Transforming Challenges into Sustainable Solutions through Industrial Policies". It will bring together around 3,000 industry leaders from around the world including decision-makers, CEOs, industry specialists, and those interested in developing industrial policies.

With inputs from SPA