Middle-east Arab News Opinion | Asharq Al-awsat

Saudi Arabia Moves towards Increasing Industrial Sector’s GDP Contribution | ASHARQ AL-AWSAT English Archive 2005 -2017
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Jobseekers stand in line to talk with a recruiter at a booth at a job fair in Riyadh in this January 29, 2012 file photo. REUTERS/Fahad Shadeed/Files

Riyadh – Saudi Arabia outlined a roadmap on increasing the contribution of the industrial sector to the gross domestic product (GDP). The kingdom in 2015 began implementing the strategy notably, realizing a 10 percent growth in manufacturers.

Saudi Arabia directs serious and relentless effort into completing the Kingdom’s 2030 vision, particularly on diversifying income sources and vitalizing the economy. Most of the development will work on bolstering and reforming the local market’s configuration.

The enhancement of the local market is evident as authorities implement the National Transformation Program 2020, a benchmark of the Kingdom’s 2030 Vision. The Public Investment Fund (PIF), a sovereign wealth fund owned by Saudi Arabia, founded for the purpose of investing funds on behalf of the government has been pumping investment into innovative entrepreneurs across the economic spectrum, most importantly being the technology sector.

More so, the Saudi energy ministry currently studies new-age equipment and options that can both amp up and encourage the industrial sector. Such a change can add to the national economy– it is also expected for the ministry to hold meetings with industrial sector investors in the upcoming period. The meetings are expected to discuss current challenges and solutions.

Saudi Arabia’s economy is expected to establish a substantial leap in 2017, improving industrial infrastructure and adding to the number of factories. An eight to seven percent growth in the number of factories is anticipated compared to 2016 figures.

The number of industrial units is expected to jump to 8,300 at least. Statistics issued by the Saudi Ministry of Energy Industry and Minerals show that for 2016 the total count of working factories has reached 7,700 by the end of the year, showing a 10 percent growth in contrast to 2015.

Total funds pumped into factories have exceeded 1.1 trillion riyals (293.3 billion dollars), with a workforce of some million workers.