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Industry History

The journey of the Saudi industry from foundation to the era of vision

Saudi Vision 2030 focus on developing the national economy and diversifying sources of income. As industry is one of the main economic tributaries of this vision. In addition to the contribution of the industrial and mining sectors planned to exceed 15% of GDP by 2020.

The industry in the Kingdom was not a product of the moment. Rather, it was built on a legacy that extends for decades, starting with the stage that coincided with the discovery of oil, which is the main pillar on which the modern industry in the Kingdom was based. The development process in the industrial sector began its first steps after the discovery of oil. Oil and its export in commercial quantities, thanks to the oil revenues and their role in the possibility of improving and directing economic conditions.

The state has attached great importance to industrial development, providing all forms of support, support and encouragement, by establishing the Saudi Industrial Development Fund in 1974 AD to finance, support and develop the industrial sector by providing medium or long-term loans to establish new factories, or to develop and modernize And the expansion of existing factories, in addition to providing advice in the administrative, financial, technical and marketing fields of industrial facilities in the Kingdom.

In 1975, the industrial and petrochemical projects were transferred to the Ministry of Industry and Electricity at the time, and in the same year the Royal Commission for Jubail and Yanbu was established, which is concerned with developing the two industrial cities of Jubail and Yanbu to witness an industrial renaissance and a major transformation in the sector, followed by The establishment of SABIC in 1976, and one of its objectives was to adopt huge industrial projects and work to support and develop Saudi industries, and the company has now become a world leader in the petrochemical industry.

There have been continuous remarkable growth rates during the reign of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud - may Allah protect him. Saudi Vision 2030 was launched in 2016; to set a new economic trajectory in Saudi Arabia. As industry was integrated with energy and mineral resources. A royal decree was issued to change the name of the Ministry of Petroleum and Mineral Resources to be (the Ministry of Energy, Industry and Mineral Resources). The number of Saudi factories was 7,741 factories, while the number of workers in factories was nearly more than one million. A royal decree was issued to establish an independent ministry called (Ministry of Industry and Mineral Resources), to confirm adopting industry and mining sectors as important economic tributaries to show how it focus on developing and localization industry to be the basis in diversifying sources of income according to Saudi Vision 2030. One of results was the number of factories in Saudi Arabia exceeded 10,000 by 2021.

In 2020, the national strategy for industry adopted by the Council of Ministers adopted the slogan: (Towards a competitive industry and a knowledge-based economy), which aims to diversify the industrial and economic base, and protect the national economy from global fluctuations in oil prices and revenues, including It ensures stability and balanced growth for all economic indicators, as confirmed by Vision 2030 and the National Transformation Program through partnerships with the private sector.

The launch of the National Industrial Development and Logistics Program, which is one Saudi Vision 2030 programs one of the most main developments lately. The aim of program to transform Saudi Arabia into a leading industrial powerhouse and an international logistics platform in many promising fields, by providing job opportunities for Saudi citizen, improving the trade balance, enhancing the local content, providing the required funding, developing the infrastructure and industrial lands, expanding applying digitization procedures, localizing technologies of industry, and adopting techniques of fourth industrial revolution, which will contribute to the transition towards a knowledge-based economy.

Like all other activities, the Saudi industry is a natural product of the development of the economy and the expansion of its activities. It has now accompanied industries in countries deeply rooted in history, and sometimes even exceeded them. Over the decades, the industry has contributed to providing many job opportunities for various segments of society. Meeting the local need in a number of products, and exceeded the export to many international markets, and many activities emerged in which the Kingdom recorded remarkable distinction, such as the petrochemical sector, metals, as well as the food industries, and today. The national industry occupies a good position in the pharmaceutical and medical supplies industries and other sectors that efforts are continuing to localize in order to achieve the health security of the country.

The procedures of the Ministry of Industry and Mineral Resources were one of the objectives of Saudi Vision 2030, which aims to promote industrial investments by providing an attractive and stable industrial environment that enhances the competitiveness of industry locally and internationally, thus increasing the value of local content and supporting local manufactured products in all its kinds, thus increasing its exports. Also, industrial renaissance will have a major role in Saudi economy progress and its global competitiveness in the future.