The General Authority for Statistics (GASTAT) in Saudi Arabia has published its report on the Industrial Production Index (IPI) for October 2024. The report indicates a 5 percent increase in the IPI compared to the same month in 2023. This growth is largely attributed to heightened activity in various sectors, including mining and quarrying, manufacturing, and the supply of electricity, gas, steam, and air conditioning, as well as water supply, sewage, waste management, and treatment.
The findings reveal that the sub-index for mining and quarrying rose by 0.4 percent year-on-year, with oil-related activities increasing by 5.4 percent and non-oil activities by 4 percent in October. GASTAT routinely publishes a range of statistical products concerning the industrial sector, with the IPI serving as a crucial economic indicator that tracks changes in industrial production volumes based on data gathered monthly through an industrial production survey.
In August 2024, the IPI experienced a 1.0 percent rise compared to the same month in 2023, primarily fueled by increased activity in mining and quarrying, manufacturing, and the supply of electricity, gas, steam, and air conditioning. Although oil activities saw a slight decline of 1.4 percent in August 2024 compared to the same month in 2023, the index for non-oil activities noted a substantial increase of 7.0 percent year-on-year.
Saudi Industrial Development Fund (SIDF)
To promote industrial investment opportunities and drive local industry, the Saudi Ministry of Industry and Mineral Resources established the Saudi Industrial Development Fund (SIDF) in 1974. The fund aims to facilitate the development of industrial sectors, enhance competitive institutions, and support strategic initiatives.
The SIDF offers financial and advisory support along with innovative solutions tailored for the industrial sector. Its mission is to promote growth, development, and improved performance within the sector to achieve its strategic objectives. Furthermore, the SIDF is committed to adding value to the economy, promoting local production, and boosting non-oil exports. It also aims to create integration between the industrial sector and other sectors while focusing on increasing the participation of Saudi talent in the industrial domain, optimizing the use of local raw materials, attracting foreign investment, and facilitating technology transfer and localization.
Saudi Basic Industries Corporation (SABIC)
The inception of the Saudi Basic Industries Corporation (SABIC) in 1976, sanctioned by royal decree, marked a significant milestone in the country’s development. The initiative focused on investing in natural gas to produce high-value-added materials, including chemicals, polymers, and fertilizers, which are exported after fulfilling market requirements. Previously, the unused gas was incinerated, contributing to environmental pollution. Now, this gas is utilized to manufacture sustainable materials and essential products such as housing materials, food, clothing, and various modern necessities.
Maaden
Maaden stands out as one of the Middle East’s largest and fastest-growing multi-commodity mining companies, ranking among the top 10 global mining firms by market value. Established in 1997 to advance the mining sector in Saudi Arabia, Maaden serves as the third pillar of the nation’s industrial strategy. The Saudi government wholly owned Maaden until 2008 when it listed 50 percent of its shares on the Saudi Exchange (Tadawul). In June 2018, the public investment fund raised its stake in the company to 65.44 percent.
Industrial cities and integrated infrastructure
The ministry has been proactive in establishing a comprehensive program focused on the development and management of distinguished industrial cities and technology zones. This initiative aligns with national priorities and is carried out in collaboration with both the public and private sectors. Consequently, in 2001, the ministry founded the Saudi Authority for Industrial Cities and Technology Zones, known as Modon.
Saudi Export Development Authority
Established in 2013, the Saudi Export Development Authority is a government organization dedicated to boosting Saudi Arabia’s non-oil exports and facilitating access to global markets. Its mission includes enhancing the export environment’s efficiency by creating programs and offering incentives to exporters.
National industrial development center
In 2007, Saudi Arabia launched the National Center for Industrial Development with the goal of fostering industrial clusters and spearheading development in five rapidly growing sectors. These sectors encompass the automobile industry, metals and mining operations, water desalination, energy spare parts, chemicals, and pharmaceuticals, as well as biotechnology. The center aims to facilitate the export of products from these sectors to international markets.
The center seeks to utilize its technical expertise to promote sustainable national industrial growth and enhance industrial investment. This is achieved through business development, establishing priorities, and recommending effective policies, all while supporting and coordinating industrial initiatives in collaboration with various government agencies and the private sector.
MODON
Modon was created with the purpose of developing industrial lands and establishing integrated infrastructure. Currently, it oversees 36 industrial zones, either operational or in the process of development, across different regions of the Kingdom. Furthermore, Modon has made significant strides in increasing the area of developed industrial lands, which now exceeds 200 million square meters.
The industrial zones encompass more than 4,000 factories and 6,587 contracts related to industrial, investment, service, and logistics operations. Together, these zones provide employment for 517,242 individuals, including 185,840 Saudi nationals and 16,825 Saudi women.
National Industrial Development and Logistics Program
Since the launch of the National Industrial Development and Logistics Program in 2019, Saudi Arabia has emerged as a key player on the global stage in the energy, mining, industry, and logistics sectors. This program, overseen by the Ministry of Industry and Mineral Resources, has significantly contributed to economic diversification, job creation, and the establishment of a sustainable future for upcoming generations.
As part of its industrial infrastructure enhancement efforts, the National Strategy for Industry has been instrumental in securing opportunities within global supply chains. Additionally, it has facilitated the export of high-tech products worldwide through initiatives such as “Made in Saudi Arabia.” This has not only reinforced local oil and non-oil sectors but has also paved the way for the Fourth Industrial Revolution, leveraging new technologies for societal advancement.
Since 2019, Saudi Arabia’s commitment to future progress has intensified, positioning itself as a leading industrial power and a global logistics hub, thanks to the ambitious plans developed under the National Industrial Development and Logistics Services Program.
