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Saudi Arabia’s NIDLP Contributes $262 Billion to Non-Oil Economy

 A factory affiliated with Ma'aden Company, East Saudi Arabia (Ma'aden) 
 A factory affiliated with Ma'aden Company, East Saudi Arabia (Ma'aden) 
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Saudi Arabia’s NIDLP Contributes $262 Billion to Non-Oil Economy

 A factory affiliated with Ma'aden Company, East Saudi Arabia (Ma'aden) 
 A factory affiliated with Ma'aden Company, East Saudi Arabia (Ma'aden) 

Saudi Arabia’s ambitious economic diversification drive under Vision 2030 continues to deliver solid results, with the National Industrial Development and Logistics Program (NIDLP) reporting a significant contribution of $262 billion to the Kingdom’s non-oil GDP in 2024.

According to NIDLP’s annual report, the program’s activities contributed 986 billion Saudi riyals ($263 billion), representing 39% of the non-oil GDP. This marks a rise from 949 billion riyals ($253 billion) in 2023. Overall, non-oil activities accounted for about 55% of the Kingdom’s total GDP.

The report highlights substantial growth in core NIDLP sectors. The manufacturing sector expanded by 4%, while mining, transportation, and storage sectors saw a 5% increase.

Non-oil exports surged to 514 billion riyals ($137 billion), reflecting a 13.2% year-on-year increase. These exports included 217 billion riyals ($58 billion) in goods, 91 billion riyals ($24.3 billion) in re-exports, and 207 billion riyals ($55.2 billion) in service exports. Among the leading manufactured exports were chemical products at 78.5 billion riyals ($20.9 billion), metals and metal products at 23.3 billion riyals ($6.2 billion), food and beverages at 10.5 billion riyals ($2.8 billion), and electrical equipment exports reaching 42.9 billion riyals ($11.4 billion).

Employment in sectors under the NIDLP umbrella reached 2.43 million workers in 2024, with 508,000 new jobs created, 81,000 of which were taken up by Saudi nationals.

Private sector investment in NIDLP industries totaled 665 billion riyals ($177.3 billion). The Saudi Industrial Development Fund approved loans worth 198 billion riyals ($52.8 billion), while the Saudi Export-Import Bank provided credit facilities valued at 69.14 billion riyals ($18.4 billion).

By the end of 2024, the number of industrial facilities in the Kingdom reached 12,500, while ready-built factories totaled 1,511. Cumulative investments in industrial cities and special economic zones reached 1.412 trillion riyals ($376.5 billion).

Domestic military industries also recorded notable gains, with local sales totaling 34.32 billion riyals ($9.15 billion). The Kingdom continues to push for localization across value chains, including sectors like medical supplies, automotive manufacturing, energy products, and petrochemicals.

Saudi Arabia launched renewable energy projects with a combined capacity of 20 gigawatts in 2024. New solar power agreements were signed for an additional 3.7 GW, while 3.6 GW of new capacity was brought online. A record-low global price for wind energy was achieved, contributing to an annual reduction of 1.7 million tons in carbon emissions.

In the mining sector, exploration spending rose to 228 riyals ($60.8) per square kilometer. Competitive bidding for mining sites increased by 380% compared to the previous year. The sector is targeting a GDP contribution of 176 billion riyals ($46.9 billion) and the creation of 219,000 jobs by 2030.

Logistics continues to emerge as a strategic pillar of the Saudi economy. In 2024, the government issued 1,056 logistics licenses and expanded re-export centers from just 2 in 2019 to 23. Port utilization rose to 64%, while customs clearance times dropped to a mere two hours, strengthening Saudi Arabia’s bid to become a global logistics hub.

The program also exceeded key 2024 benchmarks. The localization rate of the defense industry reached 19.35%, surpassing the 12.5% target. Local content reached 1.23 trillion riyals ($328 billion), above the targeted 1.11 trillion riyals ($296 billion). Emerging industries recorded exports worth 135.6 billion riyals ($36.2 billion), with 3,100 final licenses issued, well above the target of 845 licenses.

The NIDLP currently oversees 284 initiatives, 163 of which have been completed, marking a 57% completion rate. This reflects the program’s strong progress in driving forward Vision 2030’s industrial and economic goals.

 

 

 

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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.

Business

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.

Business

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.