عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Foreign Capital Represents 39% of Saudi Industrial Sector Investments

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 National Industrial Development and Logistics Program aims to achieve integration between the targeted sectors, namely industry, mining, energy and logistics. (Asharq Al-Awsat)
TT
20
TT

Foreign Capital Represents 39% of Saudi Industrial Sector Investments

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 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.

Most Viewed

 
Business

Japan Says No Plan for Big Concessions in Talks on US Tariffs 

Japanese Prime Minister Ishiba Shigeru speaks at a joint press briefing after his meeting with NATO Secretary General Mark Rutte (not pictured) at the Prime Minister's Office in Tokyo, Japan, April 9, 2025. (Reuters)
Japanese Prime Minister Ishiba Shigeru speaks at a joint press briefing after his meeting with NATO Secretary General Mark Rutte (not pictured) at the Prime Minister's Office in Tokyo, Japan, April 9, 2025. (Reuters)
TT
20
TT

Japan Says No Plan for Big Concessions in Talks on US Tariffs 

Japanese Prime Minister Ishiba Shigeru speaks at a joint press briefing after his meeting with NATO Secretary General Mark Rutte (not pictured) at the Prime Minister's Office in Tokyo, Japan, April 9, 2025. (Reuters)
Japanese Prime Minister Ishiba Shigeru speaks at a joint press briefing after his meeting with NATO Secretary General Mark Rutte (not pictured) at the Prime Minister's Office in Tokyo, Japan, April 9, 2025. (Reuters)

Japanese Prime Minister Shigeru Ishiba said on Monday his country does not plan to make big concessions and won't rush to reach a deal in upcoming tariff negotiations with US President Donald Trump's administration.

Japan, a long-time US ally, has been hit with 24% levies on its exports to the United States though these tariffs have, like most of Trump's sweeping "reciprocal" tariffs, been paused for 90 days.

But a 10% universal rate remains in place as does a 25% duty for cars, which is set to be particularly painful. The US is Japan's biggest export destination and automobile shipments account for roughly 28% of its exports there.

The two countries will begin trade talks on Thursday in Washington that are expected to cover tariffs, non-tariff barriers and exchange rates.

"I'm not of the view that we should make big concessions for the sake of wrapping up negotiations quickly," Ishiba said in parliament, though he ruled out slapping Japanese tariffs on US imports as a countermeasure.

"In negotiating with the United States, we need to understand what's behind Trump's argument both in terms of the logic and the emotional elements behind his views," Ishiba said, noting that US tariffs have the potential to disrupt the global economic order.

Bank of Japan Governor Kazuo Ueda warned of forthcoming pain.

"US tariffs will likely put downward pressure on the global and Japanese economies through various channels," Ueda told the same parliament session.

In addition to its large trade surplus with the US, Trump has also accused Japan of intentionally maintaining a weak yen - leading to expectations that Tokyo could come under pressure to strengthen its currency - even though a broad dollar sell-off has pushed up the yen of late.

The slow pace at which the Bank of Japan is raising borrowing costs from ultra-low levels could also come under fire in the talks, sources have previously said.

Economy Minister Ryosei Akazawa, who will lead Japan's delegation, said any discussion on currency rates will be held between Japanese Finance Minister Katsunobu Kato and US Treasury Secretary Scott Bessent.

"Both countries share the view that excessive market volatility would have adverse effects on the economy," Kato said.

Any discussion on the yen may spill over to monetary policy and complicate the BOJ's decision on how soon, and by how much, it should raise still-low interest rates.

Akira Otani, a former top central bank economist who is currently managing director at Goldman Sachs Japan, said the BOJ could consider halting interest rate hikes if the yen were to approach 130 to the dollar.

Conversely, a yen slide below 160 could bring forward or accelerate future rate hikes, he said.

The dollar fell 0.62% to 142.62 yen on Monday.

Japan has historically sought to prevent its currency from rising too much, as a strong yen hurts its export-reliant economy. But a weak yen has become the bigger headache in recent years as it has boosted import costs and hurt consumer spending.

Ruling and opposition party lawmakers have escalated calls for the government to cut tax or offer cash payouts to cushion the economic blow from rising living costs and Trump's tariffs.

Ishiba said the government is not thinking of issuing a supplementary budget now, but stood ready to act in a timely fashion to cushion any economic blow.