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Foreign Capital Represents 39% of Saudi Industrial Sector Investments

Foreign Capital Represents 39% of Saudi Industrial Sector Investments

Monday, 8 August, 2022 - 09:30
The National Industrial Development and Logistics Program aims to achieve integration between the targeted sectors, namely industry, mining, energy and logistics. (Asharq Al-Awsat)

The Ministry of Industry and Mineral Resources said on Sunday that foreign or joint capital investments represent about 39 percent of the total investments in the industrial sector in the Kingdom.


The ministry also revealed that the total number of existing and under construction factories until the end of last May reached 15 percent.


The number of factories with foreign investment in Saudi Arabia reached 839 by the end of May 2022, the ministry said, representing approximately 8 percent of the total number of factories, with investments estimated at more than SR65 billion (USD 17.3 Billion).


The number of joint venture factories in Saudi Arabia reached about 787, constituting 7 percent of the total factories, with investments estimated at more than SR464 billion.


Meanwhile, the National Industrial Development and Logistics Program (NDLP) has managed to contribute 690.7 billion riyals (USD184 billion) to the Saudi economy during the past year.


The program’s economic activities contributed about SR413.5 billion (USD110 billion) to the real GDP, with a growth rate of 9 percent compared to 2020, in addition to SR231 billion (USD61 billion) for non-oil commodity exports, with a growth of 37 percent.


Saudi Arabia launched the National Industrial Development and Logistics Program in 2019 with the aim of transforming the Kingdom into a leading industrial power and a global platform for logistics services, and achieve integration between the targeted sectors, namely industry, mining, energy and logistics.


According to a recent report by NDLP, the value of re-export operations improved by the end of 2021 to reach SR43.5 billion (USD11.6 billion), compared to SR35.3 billion (USD9.4 billion) in the previous year.


The National Industrial Development and Logistics Program is one of the most important and largest of the thirteen programs in the Kingdom’s Vision 2030, in terms of its expected positive impact on the Saudi economy.


By 2030, the program aims to increase the contribution of its four sectors - industry, mining, logistics and energy - to the GDP to SR1.2 trillion (USD320 billion), stimulate investments worth more than SR1.7 trillion (USD453.3 billion), and raise the volume of non-oil exports to more than one trillion riyals (USD266 billion), as well as developing the labor market by creating 1.6 million new jobs.


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