RIYADH: Saudi Arabia’s growth in the industrial sector is progressing, with the Kingdom creating policies to attract investments and boost local content production, according to a vice minister.
Speaking in a panel discussion at the Multilateral Industrial Policy Forum in Riyadh, Saudi Arabia’s Vice Minister of Industry Affairs, Khalil bin Salamah, said that effective implementation of policies is crucial to meet the goals outlined in the Kingdom’s National Industrial Strategy.
Events like MIPF are necessary for Saudi Arabia, as the Kingdom is on a path of economic diversification by strengthening the industrial sector and reducing the revenue dependence on crude.
The vice minister described Saudi Arabia’s National Industrial Strategy as “very ambitious” as it aims to build a thriving industrial ecosystem that attracts investment, enhances economic diversification, and develops its gross domestic product and non-oil exports.
“What we have done in the last 60 or 70 years, we have to triple in the next 10 years. The only way to really achieve these ambitious targets is by focusing on the policy part. The local content law is very critical. So, our production can have an outlet market, either from the demand we have in Saudi Arabia or to play in the value chain with large procurement companies,” said Bin Salamah.
He added: “Procurement companies always look for quality, delivery of time and cost competitiveness. So, there is a government role to play, and there is a play of policies to bridge between the product and companies who will buy. And there are also other ministries within the ecosystem of government, each one will play its role.”
The vice minister also underscored the vitality of cross-country policies and added that they are essential for the Kingdom to expand its industrial reach to other nations.
He added: “The National Industrial Strategy is created keeping in mind what we have succeeded in the petrochemical sector. To be a global player, we have to see the value chain not only all done in Saudi Arabia, but also has to play a bigger role in other countries.”
During the same panel discussion, Khalid Al-Salem, CEO of the Royal Commission of Jubail and Yanbu, said that it has almost $1.3 trillion ($350 billion) of investments made by national and international private companies.
He added: “The investments, SR1.3 trillion, it is either under discussion or in design, or construction. We have SR500 billion worth of investments now in the pipeline within the coming five years. Imagine these cities will be doubled. We will continue to upgrade our systems.”
The CEO added that the Royal Commission is also adopting green initiatives in these cities, which include the use of green hydrogen, renewables, and carbon capture technologies.
“In Royal Commission, we have all the sensors for environmental control and looking at the traffic and utilities. We are connecting all of that to create smart cities, making our cities more efficient and we can respond immediately to the requirement of investors,” said Al-Salem.
He added: “The creation of the Ministry of Industry and Mineral Resources and all the required system is clearly a great recipe for success. We are now looking to implement the National Industrial Strategy and National Mining Strategy. We are now working to achieve these targets.”
