The manufacturing sector in Saudi Arabia is growing rapidly. In 2023, it is projected to contribute 15.6% to the country’s GDP, and is expected to grow at a CAGR of 2.78% from 2023 to 2028. The sector is dominated by the petrochemicals, metals, and food and beverage industries.
The government of Saudi Arabia is supporting the growth of the manufacturing sector through a number of initiatives, including:
- The National Industrial Development and Logistics Program (NIDLP), which aims to increase the share of manufacturing in GDP to 20% by 2030.
- The Saudi Aramco Downstream Integration Program, which will invest $70 billion in the development of downstream industries, such as refining, chemicals, and plastics.
- The Made in Saudi Arabia program, which aims to promote locally manufactured goods and services.
These initiatives are expected to create new opportunities for the manufacturing sector in Saudi Arabia. Some of the key opportunities include:
- The growth of the automotive industry, as Saudi Arabia plans to localize the production of 60% of its vehicles by 2030.
- The development of the renewable energy sector, as Saudi Arabia seeks to increase its use of renewable energy to 50% by 2030.
- The growth of the medical device’s industry, as Saudi Arabia is investing heavily in healthcare.
The manufacturing sector in Saudi Arabia is poised for growth in the coming years. The government’s initiatives are creating new opportunities for the sector, and the country’s strong economic fundamentals are supporting its growth.
Here are some specific examples of government initiatives that are supporting the manufacturing sector in Saudi Arabia:
- The Saudi Industrial Development Fund (SIDF) provides loans and guarantees to manufacturing businesses.
- The Ministry of Industry and Mineral Resources offers a number of incentives to manufacturing businesses, such as tax breaks and land grants.
- The King Salman Advanced Manufacturing Program (KSAMP) is a research and development initiative that is helping to develop new manufacturing technologies.
These initiatives are helping to make Saudi Arabia a more attractive destination for manufacturing businesses. As a result, the manufacturing sector is expected to continue to grow in the coming years. This is in line with the broader investment drive from the Kingdom.
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