Saudi companies vie to make mark in global export market

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Updated 28 March 2022

Saudi companies vie to make mark in global export market

Saudi companies vie to make mark in global export market
  • KSA aims to increase non-oil exports from 16% to 50% of non-oil GDP by 2030.
  • 147 firms have launched their products in the market under the slogan ‘Made in Saudi Arabia’ in various fields.

RIYADH: Over 1,400 Saudi manufacturing companies are now part of the country’s growing network of firms that advance Saudi exports as the Kingdom taps more resources to develop and expand local industry, said Faisal Al-Maghlooth, director general of Made in Saudi Program at Saudi Made.

“We are proud to have more than 1,400 companies that represent the national industry identity, enhance the quality of the local product and make it a first choice for the consumer in all markets,” Al-Maghlooth told Arab News on the occasion of the first anniversary of the Made in Saudi Program.

He proudly pointed to some important developments and factors that have helped shape the Saudi industry. “Within one year of starting Made in Saudi Arabia, there have been many achievements that we are proud of.

‘Made in Saudi’ (program) seeks to market national goods and services to become the preferred option locally and globally.

Faisal Al-Maghlooth

There are more than 30 strategic partners, and more partners are being added,” Al-Maghlooth informed.

Up until now, more than 6,500 products have been registered by Saudi companies and 147 firms have launched their products in the market under the slogan “Made in Saudi Arabia” in various fields of food, chemicals, iron, pharmaceuticals, paints and others.

Asked about the contributions made by “Made in Saudi Arabia” at the local economic level, Al-Maghlooth said there were plenty. “Increasing domestic consumption of national goods and services, raising the share of national products, especially those with higher local content, in the Saudi market as well as in our exports, increasing Saudi non-oil exports to priority export markets and enhancing the attractiveness of the Saudi industrial sector for local and foreign investment,” he noted.


 Faisal Al-Maghlooth, director general of Made in Saudi Program

Faisal Al-Maghlooth, director general of Made in Saudi Program

‘Made in Saudi Arabia’ advantage

Al-Maghlooth highlighted some of the advantages in joining the program. “Many advantages have been achieved by the companies that joined, the most important of which is the use of the Made in Saudi Arabia logo on the company’s registered products, which contributes to strengthening its institutional and marketing presence with member companies and products registered under the same logo,” he pointed out.

Moreover, these firms benefited from all the posts and marketing campaigns launched by the Saudi Export Development Authority under the slogan “Made in Saudi Arabia” through social networking sites, facilitating members’ communication with all government agencies, exchanging experiences in specialized fields, training in developing local content, entering global and export markets, using the logo on products that meet recognized national content and quality standards.

Al-Maghlooth emphasized the importance of the Saudi private sector in the program. “It is important to clarify that ‘Made in Saudi’ (program) seeks, as I mentioned earlier, to market national goods and services to become the preferred option locally and globally, and this can only be achieved in close and vital cooperation with the private sector, as well as the public sector,” he said.

One of the goals that the program is working on is to develop the contribution of the private sector to the national economy, and even to unleash the capabilities of the promising non-oil sectors, which are always focused on by Crown Prince Mohammed bin Salman when talking about the Saudi economy, according to Al-Maghlooth.

As for the eligibility to register products in the program, it revolves around fulfilling the requirements for adding value, meaning that the percentage of local materials included in the final product is not less than 40 percent.

This program will also enable both Saudi men and women to join the workforce of the rapidly growing industry and will further enhance medium, small and micro-enterprises.

Diversifying the economy

This development comes at a time when Saudi Arabia has made steady and giant steps to diversify the economy and reduce dependence on oil as the main source of revenue.

All indicators and available statistics show that the Kingdom is on the right path to increase the share of non-oil exports in general.

Although oil exports still have the lion’s share of total exports (more than 70 percent), the private sector, with the support of the government, has succeeded in opening new markets around the world for non-oil products.

The drive to boost non-oil exports was also seen as an integral part of the ambitious Vision 2030 agenda that is supposed to shape the Saudi economy.

According to the Saudi General Authority for Statistics, GASTAT, non-oil Saudi exports to the rest of the world in 2021 stood at $61.7 billion compared to $45.1 billion in 2020, an increase of 89.52 percent.

Total Saudi non-oil exports in 2019 stood at $50 billion, based on GASTAT data.

In the fourth quarter of 2021, non-oil exports surged to $12.6 billion compared to $12.2 billion in the same quarter of 2020, an increase of 14.13 percent.

China remained the largest recipient of Saudi non-oil products as evident by official statistics.

In the fourth quarter of 2021, Saudi non-oil exports to China amounted to SR55.3 billion ($14.7 billion), or 17.3 percent of total exports.

India and Japan followed next with SR34 billion and SR33.3 billion respectively.

South Korea, the UAE, the US, Egypt, Singapore, Taiwan and Bahrain were the other countries that ranked in the top 10 destinations. Exports of Saudi Arabia to those 10 countries amounted to SR225.4 billion, accounting for 70.4 percent of total exports.

The data compiled by Arab News also showed that Saudi Arabia’s non-oil exports helped reduce some of the negative impact from the volatility in the Kingdom’s oil exports revenues.

“The volatility in non-oil exports revenues on a yearly basis was relatively milder than that for oil exports,” according to recent GASTAT data.

The diversification of the Saudi economy including increasing exports is at the heart of Saudi Vision 2030.

The Vision 2030 aims to increase non-oil exports from 16 percent to 50 percent of non-oil gross domestic product by 2030.

The Kingdom seemed very determined to open new markets for its non-oil products irrespective of the number of years to realize this objective.

The purpose of these studies are to help policymakers in the Kingdom to develop a modern and effective approach to streamline the Saudi economy in a bid to allow the non-oil sector to increase exports to other countries in the world.

Based on the promising data over the past few years, Saudi Arabia will most likely increase non-oil exports and even focus on other products besides chemicals and plastic.


Nuclear energy offers ‘a golden opportunity’ to build a clean world

Nuclear energy offers ‘a golden opportunity’ to build a clean world
Updated 9 sec ago

Nuclear energy offers ‘a golden opportunity’ to build a clean world

Nuclear energy offers ‘a golden opportunity’ to build a clean world

RIYADH: Being a cost-effective and low-carbon solution, nuclear energy “offers a golden opportunity” to help build a clean world, according to the director general of the World Nuclear Association.

Sama Bilbao y Leon was speaking as a keynote speaker at the 44th IAEE International Conference in Riyadh on Tuesday. The top official said nuclear energy offers an opportunity to build a cleaner and more equitable world in which everyone has access to “clean, abundant and affordable round-the-clock energy and high quality of life.”

“As a low-carbon energy source, nuclear power can play a very important role, decarbonizing other difficult-to-able sectors,” she said.

The official said nuclear energy is certainly a cost-effective, low-carbon solution and a catalyst for economic development. It is more efficient than other sources when we think of energy transition, she added.

She, however, cautioned saying that much work is needed to deploy nuclear power with determination and speed.

Leon also pointed out that the current energy market is unstable, and there is a need to take a step back and adopt scientific approaches to make the sustainable energy transition a success.

Yousef Al-Ghamdi, executive director of strategic planning at the Saudi Electricity Co. noted that renewable energy will play an important role in energy transition, especially hydrogen energy.

Shihab Elborai, a partner at Strategy& Middle East, underscored the importance of technological advances to meet the challenges of climate change. He said recycling can help mitigate the climate effect and reduce carbon in the environment, therefore countries should invest in efficient technologies to improve the energy sector.

Peter Hartley, the George A. Peterkin Professor of Economics at Rice University, said natural gas is cheaper and a better option and as an energy source is going to stay. He added that nuclear energy is a costly affair.

Ayad Alamri, executive director for business development, at ACWA Power, said that PVC has a key role in clean energy management and distribution as we are aiming at a net-zero future.


Saudi, Hong Kong bourses sign MoU to explore listing opportunities

Saudi, Hong Kong bourses sign MoU to explore listing opportunities
Updated 39 min 32 sec ago

Saudi, Hong Kong bourses sign MoU to explore listing opportunities

Saudi, Hong Kong bourses sign MoU to explore listing opportunities

RIYADH: Saudi Tadawul Group Holding Co. has signed a memorandum of understanding with Hong Kong Exchanges and Clearing to work together to explore listing opportunities and collaborate in sectors such as fintech and environmental, social and governance, according to a tweet by the parent company of the Saudi Exchange.

The MoU reflected the HKEX’s “ongoing commitment to driving global connectivity and shaping a successful shared sustainable future,” said Nicolas Aguzin, CEO of the Hong Kong bourse operator.

“This MoU brings us one step closer toward enabling cross listings and other areas of collaboration between Saudi Arabia and Hong Kong,” Tadawul CEO Khalid Al-Hussan was quoted as saying by the Chinese media.

“As we seek to position the Saudi capital market as an investment hub between East and West, we are seeing increased interest from issuers and investors in Asia.”

 

 


Saudi Arabia-China Entrepreneur Association launched at LEAP

Saudi Arabia-China Entrepreneur Association launched at LEAP
Updated 07 February 2023

Saudi Arabia-China Entrepreneur Association launched at LEAP

Saudi Arabia-China Entrepreneur Association launched at LEAP

RIYADH: The Saudi Arabia-China Entrepreneur Association was launched at the LEAP 2023 conference in Riyadh on Tuesday.

The association — comprising over 100 Saudi and Chinese businesses, government entities, nongovernmental organizations, and academic institutions — seeks to boost cooperation between the private sectors on both sides along with bilateral ties at the government level. 

The nonprofit organization is supported by the Saudi Ministry of Communications and Information Technology and the Saudi Federation for Cybersecurity, Programming, and Drones. It will be operated by eWTP Arabia Capital.

“In line with Saudi Arabia’s Vision 2030, SCEA will enable cross-border investments and valuable collaborations,” said Jerry Li, founder and managing partner of eWTPA. 

The organization also plans to promote investment, encourage innovation, and develop social responsibility and public welfare.  

“China is a strategic partner for Saudi Arabia in terms of technology and innovation. Having worked closely with Alibaba and eWTPA for the last three years, I highly appreciate their efforts in contributing to the development of our local digital ecosystem,” said Faisal Al-Khamisi, chairman of the Saudi Federation for Cybersecurity, Programming, and Drones. 

Al-Khamisi added: “This association will take our collaboration to the next level and provide the broader Saudi-China business community with a forum to share valuable experiences.”   


Jordanian-Iraqi business forum to start Wednesday in Baghdad

Jordanian-Iraqi business forum to start Wednesday in Baghdad
Updated 07 February 2023

Jordanian-Iraqi business forum to start Wednesday in Baghdad

Jordanian-Iraqi business forum to start Wednesday in Baghdad
  • 3-day conference being held under title ‘Partnership for the Future’
  • Jordanian delegation to include company representatives from range of sectors

AMMAN: A Jordanian-Iraqi business forum will on Wednesday get underway in Baghdad with company representatives and investors from both countries taking part.
The Jordan Chambers of Commerce and Industry and the Jordanian Businessmen Association are co-organizing the three-day event, which is being held under the title “Partnership for the Future,” the Jordan News Agency reported on Tuesday.
The participating Jordanian delegation will include representatives of firms operating in various economic sectors including foodstuffs, communications, information technology, medicines, clothing, financial and banking services, insurance, construction, contracting, real estate development, tourism, agriculture, mining, and plastics industries.
In regard to the current global economic situation, the forum will provide a chance for the private sectors of Jordan and Iraq to work together and make the most of the opportunities available, advancing the strategic goals and common interests of the two countries.
The forum will be held concurrently with the joint Jordanian-Iraqi committee meetings and will feature bilateral talks between Jordanian and Iraqi business leaders as well as an overview of investment opportunities in Jordan.
The Jordanian party will be one of the biggest economic delegations to visit Baghdad, reflecting Amman’s desire to forge close economic ties with Iraq and support initiatives launched by King Abdullah II and the Iraqi leadership.


Tonomus teams with Oracle, Nvidia to boost AI capabilities across NEOM, Saudi Arabia

Tonomus teams with Oracle, Nvidia to boost AI capabilities across NEOM, Saudi Arabia
Updated 07 February 2023

Tonomus teams with Oracle, Nvidia to boost AI capabilities across NEOM, Saudi Arabia

Tonomus teams with Oracle, Nvidia to boost AI capabilities across NEOM, Saudi Arabia

 

RIYADH: With the aim of boosting artificial intelligence capabilities across NEOM and Saudi Arabia, Tonomus announced it had teamed up with Oracle and Nvidia at LEAP 23 on Tuesday.
The collaboration by Tonomus, a cognitive multinational conglomerate and the first company to be established as a full-fledged subsidiary of NEOM, is designed to accelerate AI-powered innovation for a broad range of use by enterprises and government organizations.
Tonomus will provide customers with direct access to Nvidia’s advanced AI, digital twin solutions that take advantage of the planned Oracle cloud region to be located at NEOM.
“The longstanding alliance between Oracle and Nvidia complements Tonomus’ ongoing mission to build the infrastructure and ubiquitous connectivity required to enable the world’s first ecosystem of cognitive technologies,” Joseph Bradley, CEO of Tonomus, said.
“This monumental collaboration will empower NEOM with geographical advantage and place Saudi Arabia firmly on the map as a regional hub for the provision of AI capabilities.”
“Tonomus will benefit from Oracle cloud infrastructure’s unmatched capability of supporting modern cloud native applications in a secure environment. This, coupled with our existing partnership with Nvidia, will speed AI adoption for enterprises,” added Richard Smith, executive vice president, cloud and technology, Europe, Middle East, and Africa of Oracle.
“Nvidia software and systems on OCI provide an ideal platform for developers like Tonomus to build AI-forward, modern cities,” Jaap Zuiderveld, vice president of EMEA at Nvidia, commented.