Kingdoms Industrial journey From Its Early Beginnings to the Era of Saudi Vision 2030
The goal of the Kingdom's Vision 2030 efforts is to set out a strategy for growing the country's economy and expanding its revenue streams. According to this picture, the industry is a crucial contributor to the economy. By 2020, the combined contributions of industry and mining are projected to exceed 15% of GDP.
The Kingdom's industry was not a flash in the pan, but rather the result of decades of planning and preparation. The first phase began at the same time as the discovery of oil. It is a well-known fact that serves as the foundation for the Kingdom's modern industrial sector. First facilitated by the discovery and subsequent export of oil in commercial products, industrial development has been steadily gaining momentum. All of it stems from oil profits, which play a key role in influencing and potentially enhancing economic conditions.
As the industrial development is of great importance to the Kingdom, all forms of support, assistance and encouragement have been provided:
1974
The Saudi Industrial Development Fund was formed to finance, assist, and advance the industrial sector. That is by providing medium-or long-term loans for the establishment of new factories or the development, renovation, and expansion of existing industries. It also assists industrial establishments in the Kingdom with administrative, financial, technical, and marketing matters.
1975
the industrial and petrochemical projects were transferred to the Ministry of Industry and Electricity at that time. In addition, The Royal Commission for Jubail and Yanbu was established the same year. It is focused on developing the two industrial cities of Jubail and Yanbu in order to experience an industrial rebirth and a big shift in the sector.
1976
SABIC was established, and one of its goals was to undertake massive industrial projects and endeavor to promote and expand Saudi industry. The company is currently a global leader in the petrochemical industry.
Industry during the reign of King Salman bin Abdulaziz Al Saud
Saudi Vision 2030 was launched in 2016 as a comprehensive economic and social reform plan to diversify the Kingdom's economy and create a more sustainable future. The industrial sector was incorporated with energy and mineral wealth. A royal decree was issued to amend the name of the Ministry of Petroleum and Mineral Resources to become (Ministry of Energy, Industry and Mineral Resources). The number of Saudi factories reached 7,741 with a total workforce of more than one million workers.
2019
a royal decree was issued to establish an independent ministry with the name (Ministry of Industry and Mineral Resources) to reflect the level of interest in developing the industrial and mining sectors and their settlement as the cornerstone of diversifying the economic base as stated in Vision 2030.
One of the most momentous events of the past several years has been the introduction of the National Industrial Development and Logistics Program. As new sectors of the economy have arisen, including the petrochemical, metal, and food industries, the Kingdom has achieved exceptional success. Today, the national industry holds a strong position in the pharmaceutical and medical supply industries, among others.
Through a variety of potential industries, the program aspires to develop the Kingdom into a major industrial power and an international logistical hub:
Strengthening trade balance.
Maximizing local content.
Providing required funding.
Developing infrastructure and industrial land.
Expanding the use of digitization procedures.
Localizing technologies related to industry.
Adopting Fourth Industrial Revolution Technologies.
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