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Saudi Arabia’s National Industrial Strategy to Boost Global Trade, Supply Chains Partnerships

The National Industrial Strategy focuses on quality and projects needed by the Kingdom (Asharq Al-Awsat)
The National Industrial Strategy focuses on quality and projects needed by the Kingdom (Asharq Al-Awsat)
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Saudi Arabia’s National Industrial Strategy to Boost Global Trade, Supply Chains Partnerships

The National Industrial Strategy focuses on quality and projects needed by the Kingdom (Asharq Al-Awsat)
The National Industrial Strategy focuses on quality and projects needed by the Kingdom (Asharq Al-Awsat)

Saudi Minister of Industry and Mineral Resources Bandar AlKhorayef affirmed on Wednesday that the National Industrial Strategy (NIS) is an essential tool for diversifying the Kingdom’s economic base.

Crown Prince Mohammed bin Salman launched on Tuesday NIS to realize the objectives of the Saudi Vision 2030. The strategy focuses on 12 sub-sectors to diversify the Kingdom’s industrial economy while identifying more than 800 investment opportunities.

The Kingdom is a key player in the mining sector’s supply chain through aluminum and will continue to develop this sector to introduce more complex products, such as aircraft structures and the related spare parts, AlKhorayef said.

Speaking to the press, AlKhorayef added that if Saudi Arabia could link its mining resources in the petrochemical sector to intermediate and end products, it would be a true partner in global trade and supply chains.

Saudi Arabia seeks to raise the industrial sector's contribution to GDP to SAR900 billion ($240 billion), the minister revealed, adding that the new NIS aims to achieve food, medicine, and military security.

Member of the Saudi Shura Council Fadel al-Buainain said that NIS will enhance Saudi industrial products in global markets, given that working according to clear strategies is the best way to achieve desired goals.

“Since the launch of Vision 2030, it has been noticed that there is a focus on industry, as a hub for diversifying the sources of the economy, increasing GDP and raising the volume of exports,” al-Buainain told Asharq Al-Awsat.

He also predicted that NIS would contribute to increasing Saudi exports to global markets.

Moreover, al-Buainain said that the strategy will directly contribute to achieving several goals, including industrial expansion. It will also see to the sector attracting qualitative investments.

NIS will further contribute to rebuilding the industrial sector according to global requirements and local needs, he added.

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Firm Dollar Keeps Pound, Euro and Yen Under Pressure

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
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Firm Dollar Keeps Pound, Euro and Yen Under Pressure

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo

The US dollar charged ahead on Thursday, underpinned by rising Treasury yields, putting the yen, sterling and euro under pressure near multi-month lows amid the shifting threat of tariffs.

The focus for markets in 2025 has been on US President-elect Donald Trump's agenda as he steps back into the White House on Jan. 20, with analysts expecting his policies to both bolster growth and add to price pressures, according to Reuters.

CNN on Wednesday reported that Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries. On Monday, the Washington Post said Trump was looking at more nuanced tariffs, which he later denied.

Concerns that policies introduced by the Trump administration could reignite inflation has led bond yields higher, with the yield on the benchmark 10-year US Treasury note hitting 4.73% on Wednesday, its highest since April 25. It was at 4.6709% on Thursday.

"Trump's shifting narrative on tariffs has undoubtedly had an effect on USD. It seems this capriciousness is something markets will have to adapt to over the coming four years," said Kieran Williams, head of Asia FX at InTouch Capital Markets.

The bond market selloff has left the dollar standing tall and casting a shadow on the currency market.

Among the most affected was the pound, which was headed for its biggest three-day drop in nearly two years.

Sterling slid to $1.2239 on Thursday, its weakest since November 2023, even as British government bond yields hit multi-year highs.

Ordinarily, higher gilt yields would support the pound, but not in this case.

The sell-off in UK government bond markets resumed on Thursday, with 10-year and 30-year gilt yields jumping again in early trading, as confidence in Britain's fiscal outlook deteriorates.

"Such a simultaneous sell-off in currency and bonds is rather unusual for a G10 country," said Michael Pfister, FX analyst at Commerzbank.

"It seems to be the culmination of a development that began several months ago. The new Labour government's approval ratings are at record lows just a few months after the election, and business and consumer sentiment is severely depressed."

Sterling was last down about 0.69% at $1.2282.

The euro also eased, albeit less than the pound, to $1.0302, lurking close to the two-year low it hit last week as investors remain worried the single currency may fall to the key $1 mark this year due to tariff uncertainties.

The yen hovered near the key 160 per dollar mark that led to Tokyo intervening in the market last July, after it touched a near six-month low of 158.55 on Wednesday.

Though it strengthened a bit on the day and was last at 158.15 per dollar. That all left the dollar index, which measures the US currency against six other units, up 0.15% and at 109.18, just shy of the two-year high it touched last week.

Also in the mix were the Federal Reserve minutes of its December meeting, released on Wednesday, which showed the central bank flagged new inflation concerns and officials saw a rising risk the incoming administration's plans may slow economic growth and raise unemployment.

With US markets closed on Thursday, the spotlight will be on Friday's payrolls report as investors parse through data to gauge when the Fed will next cut rates.