JEDDAH: Nusaned, the localization initiative from Saudi Basic Industries Corp (SABIC), was set up in 2018 as part of the Kingdom’s Vision 2030 plan to diversify the non-oil economy by encouraging the growth of local companies and small and medium-sized enterprises (SMEs) in the industrial sector.
“We connect potential investors to the program,” Faisal Al-Buhair, vice president local content and business development and CEO of Nusaned, told Arab News. “Once they register with the Entema platform, which is the opportunity gate at Nusaned, we take them through the investor’s journey.”
Last year 106 Saudi entrepreneurs qualified for Nusaned’s program. The screening of proposed investments is an important step in ensuring that the program focuses on the right candidates and those with the ability to scale up and have national impact.
“An important criteria in our screening process is that the investment needs to support the National Industry Strategy sectors and thereby add value to Saudi Vision 2030,” Al-Buhair said. “In any case, an investor who shows a high level of commitment, knowledge, and readiness will have a higher chance of success.”
He was optimistic about the year ahead after the challenges the Kingdom had faced because of the pandemic in 2020.
Nusaned is aiming to increase its investments in companies that are considered to be strategic and critical industries for the Kingdom, such as automotive, aviation, food processing and pharmaceutical/medical manufacturing.
“We are keen on investments that offer differentiated solutions, specialized applications, and advanced technology to help the Kingdom enhance its competitiveness in local and export markets,” Al-Buhair said.
So far the program has more than 33 investments in the execution phase, of which 14 are already in operation. These investments have an expected annualized gross domestic impact of over $500 million and the potential to create more than 2,000 jobs.
This week Nusaned signed an investment agreement with the Saudi Pallet Manufacturing Company (SPMC) to promote the local production of plastic pallets. The funding will help SPMC to accelerate its product development, ramp up production, and expand its product reach regionally and globally.
“The partnership with SABIC will enable SPMC to serve the fast-moving consumer goods market by producing technologically advanced and patented multi-use plastic pallets from its manufacturing facility in Dammam,” Omar Al-Shawaf, SPMC CEO, said in a press statement.