The Saudi Organization for Industrial Cities and Technology Zones (Modon) signed an agreement with a technology company for advanced materials to host the latter’s first plant to produce Carbon nanotubes (CNTs) in an effort to empower the industry in Saudi Arabia and support value added industries.
While Saudi Arabia has been working to boost the growth of industrial production, thus increasing its contribution to its GDP, Modon aims to support value added industries and stimulate local companies to expand in this field.
The agreement aims at supporting the specialized company to establish its first factory for the production of CNTs, which stimulate the paint industry and is in line with modern construction techniques.
It comes as Saudi factories achieved positive growth rates in the second quarter of 2018, confirming the vitality of these factories and their ability to contribute effectively to the Kingdom’s GDP.
The country’s economic growth rates started to increase in 2018, with expectations for higher growth this year.
Meanwhile, Saudi Arabia’s General Authority for Statistics issued the Index of Industrial Production (IIP) for the second Quarter 2018, which shows the results of the relative change and development in the quantities of materials and goods produced.
“When comparing the results of the second quarter 2018 with the results of the previous quarter (Q1 2018), we find that the production quantities have increased by 4.17 percent in all industrial activities, amounting to 137.87 points,” the report said.
The production increase rate in the mining and quarrying activity rise up 1.89 percent. However, the production growth rate increased by 5.07 percent in the manufacturing industry activity, and the electricity and gas supply activity rise by 83.46 percent.
“Furthermore, when comparing the results of the second quarter 2018 with the results of the second quarter 2017, we find that the production quantities increase by 5.84 percent in all industrial activities,” the report explained.
The production growth rate recorded 16.44 percent in the manufacturing industry activity while the production rate of electricity and gas supply has recorded a decrease of 0.30 percent.
These results coincide with the process of providing industrial land developed at very nominal prices, one of the most important support tools provided by Saudi Arabia to investors in the industrial sector, in addition to the provision of high financial loans to these investors.
