Industrial Development: Economic Impact

The industrial sector in the Kingdom is witnessing significant transformations and developmental projects at all levels. The sector enjoys future growth opportunities based on the programs of Saudi Vision 2030, which focus on increasing the industrial sector's contribution to the national economy to reach its full potential. The Kingdom considers industry a major element in its economic diversification plan.

The Kingdom consistently works through economic reforms to address the challenges facing industrial investors in the country and improve the investment environment in the industrial sector. It takes immediate measures to ensure a fair competitive environment for local producers, establishes enabling policies and legislation for the sector, monitors vital economic indicators for the industrial sector, improves the economic environment by monitoring the industrial competitiveness index, and tracks the achievements of strategic targets for the Saudi industrial sector and compares them with international competitiveness indicators. This is especially important as the direction of the industrial sector in the Kingdom relies on adopting technology and innovation.

In this regard, these indicators reflect the vitality and effectiveness of the Saudi industries. The pursuit of development and expansion in the Kingdom's industries, led by Saudi production companies, is evident in the data and analysis conducted by the Saudi Industrial Development Fund, showing significant development in the composition of the non-oil gross domestic product (GDP) in the manufacturing industries over the past two decades. It is commendable that the Kingdom has placed great emphasis on developing industrial exports in line with comprehensive economic development strategies aimed at expanding the production base and diversifying sources of income.

Speaking of which, it’s worth mentioning that it’s one of the initiatives of Saudi Vision 2030 in the industrial sector, with the aim of focusing on developing strategic industries, optimizing the utilization of mineral resources, developing local content, developing promising and competitive industries, increasing their contribution to the GDP, and employment, including the automotive industry, pharmaceuticals, medical supplies, and others, localizing defense industries, expanding the scope of oil and gas-related industries, developing the food industry, increasing the local content in the industrial sector, supporting entrepreneurship and small and medium-sized enterprises. These commendable achievements have reinstated Saudi Aramco as the world's most valuable company among non-tech companies for the first time in years.