Saudi Arabia is placing a significant emphasis on enhancing investments from the private sector within its manufacturing industry, riding on the wave of rapid national growth, as stated by a senior government official.
In a speech at the Riyadh International Industry Week 2024, Deputy Minister of Industry and Mineral Resources for Industrial Affairs Khalil bin Salamah highlighted the critical role of collaborations with non-governmental organizations in propelling industrial advancement in the country.
Bin Salamah affirmed the importance of strategic partnerships with the private sector to fuel economic expansion in Saudi Arabia. He noted that synchronized efforts between government and private entities are key to surmounting challenges, as reported by the Saudi Press Agency.
“We look forward to the private sector taking the helm in escalating investments in manufacturing and capitalizing on the Kingdom’s swift growth,” Bin Salamah conveyed.
Reports from the Saudi Authority for Industrial Cities and Technology Zones (MODON) indicate that private sector investments in the nation’s industrial domain surged, exceeding SR7 billion ($1.8 billion) in the first quarter of 2024.
The deputy minister explained that the national industrial strategy was formulated in concert with the private sector, fostering a partnership-centric business model within the industrial ecosystem.
The Kingdom is committed to amplifying private sector investments and is eager to strengthen collaboration between core and transformational companies to develop business ventures and create new opportunities, he asserted.
“Efforts are underway to amplify current production capacities. A committee has been established to integrate petrochemical supply chains, focusing on addressing challenges related to the availability and competitiveness of petrochemical materials,” Bin Salamah stated.
He urged companies in the sector to join forces in confronting these challenges and in aiding the discovery of viable solutions.
Bin Salamah underscored Saudi Arabia’s prominence in the petrochemical industry and its capability to augment supply chains, thereby supporting economic growth and enhancing the supply chains of related industries.
Moreover, he mentioned that the Ministry of Industry and Mineral Resources is collaborating with the Ministry of Energy and other government entities to empower the sector by improving the integration of petrochemical supply chains within the country.
These endeavors are geared towards ensuring the availability and competitiveness of petrochemical materials for the production of specialized products, thus fostering sector growth and boosting supply chain cohesion.
He elaborated that strengthening the industrial base and diversifying the economy are key objectives for the Kingdom, with the attraction of private sector investments being a cornerstone of its industrial strategy.
The deputy minister emphasized the industrial system’s vital role in nurturing growth and development in the Kingdom’s industrial sector by enhancing sectoral integration and supply chains, developing infrastructure, and incentivizing joint investments across diverse sectors.
He concluded by expressing the ministry’s commitment to sustaining industrial momentum in Saudi Arabia, noting that Industry Week hosts four significant industrial exhibitions, including Saudi Plastics & Petrochem, Saudi Print & Pack, Saudi Smart Manufacturing, and Smart Logistics Services, all under a single umbrella.