Saudi Arabia has announced that it will host the Multilateral Industrial Policy Forum (MIPF) in October, in partnership with the United Nations Industrial Development Organization (UNIDO). The forum underscores the Kingdom’s significant industrial transformation, in line with Vision 2030. It aims to expand the Saudi industrial base and solidify its position as a leading global industrial center.
Organized by the Ministry of Industry and Mineral Resources in Riyadh, the MIPF will support Saudi Arabia’s National Industrial Strategy, which seeks to raise the country’s competitiveness and support its national economy.
Under the theme ‘Transforming Challenges into Sustainable Solutions through Industrial Policies’, the forum will bring together over 3,000 industry leaders from around the world, including decision makers, CEOs, industry specialists, and industrial policy developers.
Saudi Arabia’s growing industrial sector
Beyond the National Industrial Strategy, Saudi Arabia has invested in developing industrial infrastructure including industrial cities and special economic zones. Moreover, the Kingdom fostered international cooperation to facilitate the transfer of knowledge and technology.
The MIPF is a platform to exchange expertise and set best practices in industrial policies. Hence, Saudi Arabia aims to develop policies that are in line with international standards. This increases the global competitiveness of its industrial sector and further supports the expansion of its economy.
Flexible supply chains
By leading initiatives for sustainable industrial practices, promoting international cooperation, exchanging expertise, and adopting environmentally friendly technologies, the kingdom seeks to enhance the flexibility of its supply chains. These efforts fall in line with the Global Supply Chain Resilience Initiative.
The industrial sector in Saudi Arabia witnessed significant developments in 2023, including:
- The announcements of major investment opportunities in certain sectors
- Issuing a license for the first Saudi-made electric car brand Ceer
- Opening the first electric vehicle manufacturing factory Lucid
The Kingdom aims to produce over 300,000 cars annually by 2030.
Attracting private sector investments is crucial to achieving the goals of the National Industrial Strategy. Saudi Arabia’s industrial sector focuses on enhancing integration among various sectors and their supply chains and developing infrastructure. In addition, it highlights encouraging joint investments, promoting local content, and empowering national companies through policies, financing and training.
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Ministry’s initiatives support growth
In July 2022, the Ministry of Industry and Mineral Resources launched the Future Factories Program, which aims to transform 4,000 factories from labor-intensive models to efficient, automatic operations utilizing cutting-edge industrial solutions. This initiative seeks 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, ensuring an environment conducive to investments and fair competition.
The MIPF will, therefore, support the ministry’s goals for 2024 and 2025, which include attracting $120.18 billion worth of investments in specific industrial sectors and adding 1,500 products to the mandatory local content list. The ministry also seeks to increase the industrial sector’s contribution to non-oil GDP to $109.79 billion and boost non-oil exports to over $79.94 billion.
Moreover, the ministry seeks to launch the industrial sector governance initiative to stimulate integration and efforts among relevant stakeholders.
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