Saudi Vision 2030 boosts industrial facilities by 60%, official figures reveal

Saudi Vision 2030 boosts industrial facilities by 60%, official figures reveal
This uptick in manufacturing establishments greatly aligns with the National Industrial Strategy, unveiled by Crown Prince Mohammed bin Salman in October 2022. Shutterstock
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Updated 28 August 2024
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Saudi Vision 2030 boosts industrial facilities by 60%, official figures reveal

Saudi Vision 2030 boosts industrial facilities by 60%, official figures reveal
  • Number of industrial establishments in the Kingdom increased from 7,206 in 2016 to 11,549 in 2023
  • Strategy focuses on 12 industrial sub-sectors, targeting more than 800 investment opportunities worth $266.4 billion

RIYADH: Bolstered by Vision 2030, Saudi Arabia’s industrial sector has witnessed a 60 percent growth in facilities since the launch of the national vision. 

The number of industrial establishments in the Kingdom increased from 7,206 in 2016 to 11,549 in 2023, reflecting Saudi Arabia’s efforts to diversify its economy and position itself as a global manufacturing power, according to a statement by the National Industrial Development and Logistics Program on the X platform. 

The report revealed that Riyadh currently leads in the number of facilities, with 4,502 factories, followed by the Eastern Province with 2,618 and Makkah with 2,209. 

Additional regions, including Al-Qassim, Madinah, and Asir, also host significant industrial infrastructure, contributing to the overall national growth. 

This uptick in manufacturing establishments greatly aligns with the National Industrial Strategy, unveiled by Crown Prince Mohammed bin Salman in October 2022, which aims to drive this growth further and expand the sector to approximately 36,000 factories by 2035. 

The strategy focuses on 12 industrial sub-sectors, targeting more than 800 investment opportunities worth SR1 trillion ($266.4 billion), striving toward tripling the industrial gross domestic product. 

According to NIDLP, facilities across the country are pivotal to advancing Vision 2030’s goals, including economic diversification and sustainable development. 

Earlier in February, the Ministry of Industry and Mineral Resources reported a 10 percent annual increase in operational factories in 2023, representing a total investment of approximately SR1.5 trillion. 

The body also noted that 1,379 industrial licenses were issued last year, with investments exceeding SR81 billion, while production began in 1,058 factories during the same period, with financial commitments totaling SR45 billion. 

It stated that the new permits were distributed among 25 industrial activities, led by food products processing with 244, followed by the manufacturing of non-metallic mineral goods with 176, and formed metal with 165. 

A total of 123 licenses were issued to factories engaged in the manufacturing of rubber and plastic products. 

Since the launch of NIDLP in 2019, Saudi Arabia has emerged as a key global player in sectors such as energy, mining, industry, and logistics. 

These industries are critical to the Kingdom’s broader economic diversification efforts, helping create diverse job opportunities and contributing to a sustainable future for younger generations. 

NIDLP leverages the nation’s strategic position as a global trade hub and its wealth of natural resources to foster further industrial growth and logistical efficiency. 


Saudi fertilizer exports to US climb 2% as trade ties flourish

Saudi fertilizer exports to US climb 2% as trade ties flourish
Updated 19 min 26 sec ago
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Saudi fertilizer exports to US climb 2% as trade ties flourish

Saudi fertilizer exports to US climb 2% as trade ties flourish

RIYADH: Fertilizer exports to the US from Saudi Arabia saw an annual increase of 2 percent in 2023 as total bilateral trade reached SR112 billion ($29.7 billion), according to new figures.

A report by the US-Saudi Business Council showed that strong oil exports and growing non-oil sectors have fueled and bolstered this economic relationship, with the Kingdom’s exports to the US standing at SR60 billion over the 12-month period.

Of that, $13.7 billion was derived from crude oil, reaffirming the Kingdom’s position as a key oil supplier to the North American country.

In the non-oil sector, exports to the US amounted to SR8.5 billion, according to the Saudi Press Agency.

This came as Saudi Vision 2030 aims to position the nation as a global investment hub, focusing on diversifying the economy beyond oil.

“Trade relations between the US and Saudi Arabia remain a cornerstone of economic engagement between the two countries, reflecting shared strategic interests and evolving global dynamics,” Albara’a Al-Wazir, director of economic research at the US-Saudi Business Council, said.

He added: “As both countries progress, the growth of trade and foreign direct investment will be key to deepening this partnership. FDI serves as a vital channel for the exchange of capital, technology, and expertise, which is particularly important as Saudi Arabia works to diversify its economy beyond oil.”

Fertilizers led the non-oil exports, valued at SR3 billion, making up 35 percent of the Kingdom’s non-oil exports to the US, while organic chemicals ranked second – valued at SR2.6 billion, representing 31 percent of the total.

In 2023, inorganic chemicals, precious and rare metals, and radioactive materials experienced a significant surge of 7.686 percent, reaching $12 million.

US exports to Saudi Arabia also gained strong momentum, totaling $13.8 billion, marking a 20 percent increase from the previous year.

These exports encompassed several key industries, including electrical and mechanical equipment, industrial products, agricultural goods, and pharmaceuticals.

Automobiles continued to be the leading US export to the Kingdom, valued at $2.8 billion which reflects a 32 percent year-on-year increase.

The second-largest export category was nuclear reactors, boilers, machinery, and parts, accounting for 18 percent of total US exports to the country, with a value of $2.5 billion and a growth rate of 38 percent year-on-year.

Aircraft and parts ranked as the third-largest US export category to Saudi Arabia, contributing $1.7 billion.

Texas maintained its lead as the top US state in trade with the Kingdom, with exports totaling $2.9 billion.

California came in second, exporting $886 million, marking a 12 percent increase from the previous year.

 

North Carolina rose to third place with $846 million in exports, experiencing a 17 percent year-on-year growth.

 

“The US is well-positioned to support this transformation through investment in non-oil sectors such as manufacturing, technology, and renewable energy—crucial areas for Saudi Arabia’s Vision 2030 goals,” Al-Wazir said.


Saudi Arabia’s tourism growth key to Vision 2030: Accor CEO 

Saudi Arabia’s tourism growth key to Vision 2030: Accor CEO 
Updated 01 October 2024
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Saudi Arabia’s tourism growth key to Vision 2030: Accor CEO 

Saudi Arabia’s tourism growth key to Vision 2030: Accor CEO 

DUBAI: French hospitality firm Accor is optimistic about the growth potential in Saudi Arabia’s tourism sector, which is being driven by the Kingdom’s Vision 2030 objectives and rich history, said the company’s top official. 

In an interview with Arab News on the sidelines of the Future Hospitality Summit in Dubai, Sebastien Bazin, group chairman and CEO of Accor, highlighted the pivotal role of the hospitality industry in reducing unemployment among Saudis. 

Bolstering the tourism sector and reducing joblessness is crucial for Saudi Arabia, as the Kingdom embarks on an economic diversification effort aimed at decreasing its dependence on oil. 

The National Tourism Strategy of Saudi Arabia aims to attract 150 million visitors by 2030 and increase the sector’s contribution to the nation’s gross domestic product from 6 percent to 10 percent. 

Bazin said: “I am very bullish about Saudi Arabia. They have a plan, they have a leader, they have a vision, they have the right brands, and they have the financial resources, geography, and history. So, it is the country not to miss.”

He added: “They (Saudi Arabia) have something which is gold in their hands — the population. You have 70 percent of the population under 35 years old. Many of them don’t have a job. They are seeking and asking for a job.” 

The CEO explained that the generosity of Saudi culture would play a significant role in encouraging the country’s youth to enter the travel and hospitality industry. “It is an enormous base to build upon.” 

Bazin also pointed to the Middle East’s emergence as a global tourist hotspot for both international and domestic travelers. He identified several factors fueling tourism growth in the region, including “great airlines, great infrastructure, safety protocols, food and beverage venues, and impeccable weather.” 

Bazin added: “I am very positive. You are going to see a 5 percent to 7 percent demand growth globally in the world of travel and tourism. I think that growth in the Gulf Cooperation Council and Saudi will probably be well above 10 percent. Much faster, much bigger than the rest of the world.”

He further stated that the growth of tourism in the GCC and the Middle East will be driven by the emerging middle class and domestic travelers. 

Regarding the impact of advanced technologies like artificial intelligence on the hospitality sector, Bazin expressed a cautious optimism, asserting that AI should enhance rather than replace human interactions. 

“We know it (AI) is going to be big. It certainly is going to be very important for data before and after your stay; all that seamless journey will probably be Generative AI-driven. During the stay, where you’re going to be with me in the hotel, AI will be instrumental. But I don’t want AI to surpass human interactions,” said Bazin. 

He added: “I want you to say ‘hello’ when you pop in, and I want my people to ask you, ‘How are you today?’ That human interaction is one of the reasons why you travel — to discover somebody else’s culture and religion. So, AI is a critical and important enhancer, but should not be a replacer of what we do every day.” 


Pakistan annual inflation slows to lowest in almost four years in September

Pakistan annual inflation slows to lowest in almost four years in September
Updated 01 October 2024
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Pakistan annual inflation slows to lowest in almost four years in September

Pakistan annual inflation slows to lowest in almost four years in September
  • Consumer prices rose 6.93% in September from a year ago, according to Bureau of Statistics 
  • CPI decreased by 0.5% in Sept. 2024 as compared to increase of 0.4% in previous month

ISLAMABAD: Pakistan’s inflation clocked in at 6.9% on a year-on-year basis in September 2024, the bureau of statistics said on Tuesday, slowing to the lowest rate in almost four years after the government slashed fuel prices and food costs eased.

Consumer prices rose 6.93% in September from a year ago, according to data released by Pakistan Bureau of Statistics. The reading in August 2024 stood at 9.6%.

On a month-on-month basis, CPI decreased by 0.5% in September 2024 as compared to an increase of 0.4% in the previous month and an increase of 2.0% in September 2023.

“CPI National for the month of September, 2024 decreased to 6.93% over September, 2023,” the statistics bureau said in a statement. “The Urban CPI decreased to 9.29% while Rural CPI decreased to 3.65%.”

“Due to aggressive monetary tightening, the State Bank of Pakistan (SBP) has achieved bringing inflation below the one-year target of 7% ahead of time,” Mohammed Sohail, CEO Topline Securities, said in a note.

Pakistan’s Finance Division announced on Monday it had slashed the price of petrol by Rs2.07 per liter till the next fortnight due to the fluctuating global prices of petroleum products.

Petroleum and electricity prices have been the key drivers of high inflation in Pakistan over the past two years. Inflation averaged close to 30% in FY23 and 23.4% in FY24, which ended on June 30, 2024.

The September inflation reading is lower than official expectations, as the finance ministry had expected inflation to decelerate in the next two months (September-October) and hover around 8-9%.

“Inflation is expected to remain within the range of 8% to 9% in September and October 2024,” the Ministry of Finance said in its ‘Monthly Economic Update and Outlook’ released last week. 

The slowing inflation figure also gives impetus to a further cut in the key policy rate.

In September, the central bank announced its most aggressive cut in the key policy rate since April 2020, reducing it by 200bps to bring it down to 17.5% amid slowing inflation and declining international oil prices.

“With continued disinflation expected, mainly on the back of high base effect, falling global commodities, this gives SBP room to keep lowering the policy rate, as real interest rates are nearly 1090bps positive,” Shahid Ali Habib, CEO Arif Habib Limited, said in a note.

The IMF last month approved a $7 billion loan program that includes tough measures such as higher taxes on farm incomes and electricity prices. The prospect of such moves has worried poor and middle-class Pakistanis. But inflation has started moving on a downward trend, albeit from a high base.


Global leaders gather in Riyadh to forge collective action on cybersecurity

Global leaders gather in Riyadh to forge collective action on cybersecurity
Updated 33 min 52 sec ago
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Global leaders gather in Riyadh to forge collective action on cybersecurity

Global leaders gather in Riyadh to forge collective action on cybersecurity

RIYADH: Experts from technology, public policy, defense, and other sectors will gather in Riyadh for the Global Cybersecurity Forum Annual Meeting on Oct. 2-3.  

The event will focus on fostering collaboration under the theme “Advancing Collective Action in Cyberspace,” with the goal of enhancing multi-stakeholder engagement and driving joint initiatives on key strategic priorities.  

The program will feature five core sub-themes, each addressing a crucial aspect of cybersecurity. “Beyond Cyber Discord: Building trust within geopolitical competition” will examine ways to overcome geopolitical tensions and cultivate trust among nations.  

“Cyber Psychology: Decoding human behaviors in Cyberspace” will explore the motivations of cybercriminals and strategies to protect users from cyber manipulation.  

The sub-theme “Cyber Social Fabric: Strengthening development and inclusion in Cyberspace” will focus on promoting social cohesion and equitable participation in the digital realm.  

Another critical topic, “Thriving Cyber Economy: Developing strong markets and building resilient cyber ecosystems,” will discuss strategies for economic growth and market integration within the cybersecurity sector. Lastly, “New Cyber Frontier: Integrating convergent technologies in Cyberspace” will investigate the impact of advanced technologies on the future of cybersecurity.  

The event builds on the success of previous editions, aiming to promote a collective approach to addressing challenges and opportunities in cyberspace.  

Day One  

The first day will kick off with various expert forums, fireside chats, and closed sessions, starting with the speaker session titled “Pathways to De-escalation: Shared priorities for reducing tensions and advancing stability in Cyberspace.”  

This session will delve into the effects of rising inter-state tensions in cyberspace and highlight opportunities for progress through new diplomatic channels, evolving norms, and emerging technologies.  

Also on the agenda is “Leadership Launchpad: Charting Paths to Leadership in Cybersecurity,” which will focus on strategies to advance mid-to-senior female cybersecurity professionals into executive roles. Additionally, “Ctrl + Invest” will showcase women-led ventures in the cybersecurity space.  

Another significant session, “Pioneering Pathways: Unleashing potential in the Cybersecurity sector,” will examine the diverse economic contributions of the cybersecurity industry in tech-driven markets, addressing its potential amid technological changes and the associated risks and opportunities for ecosystem development.  

“Equipping the Defenders: What law enforcement needs to win” will address the critical needs of law enforcement in tackling online child abuse, talent shortages, future skill requirements, and propose actionable solutions.  

In “Cyber Statecraft: The new chessboard of geopolitics,” participants will discuss strategies to integrate cybersecurity into national defense, enhancing geopolitical advantage and ensuring long-term security.  

“The Multilateral Frontier: Assessing the state of play and imperatives for collective action in cyber diplomacy” will analyze the current state of UN negotiations, emphasizing significant progress while addressing challenges in establishing robust international norms and frameworks for cyber governance.  

“Code, Clicks, and Culture: Social Transformation in the Technological Age” will focus on the social transformations driven by technological advancements and the cultural shifts resulting from increased interconnectedness and technology adoption across demographics.  

Additional panel discussions and closed sessions will also take place throughout the first day.  

Day Two  

The second day will feature in-depth discussions on the economic, political, and defense roles of cybersecurity in the digital era.  

One notable session, “The History of Cyber Diplomacy Future: Drawing insights from collaborative progress on trade, nuclear, and climate,” will explore how trade agreements, nuclear disarmament, and climate negotiations can inform effective strategies for cyber diplomacy.  

In “Principles of Stability: Applying the lessons of the past to the current and future challenges in Cyberspace,” participants will examine challenges through the lens of the Secure Future Initiative, a multiyear program focused on evolving Microsoft’s design, development, and operational standards for security.  

“Navigating the Future: Advancing the Global Cybersecurity Agenda to build confidence in cyberspace” will trace the evolution from the World Summit on the Information Society Action Line 5—which laid the groundwork for trust and security in information and communication technologies—to the establishment of the ITU Global Cybersecurity Agenda. This session will highlight how the principles of Action Line 5 have shaped the ITU’s broader approach to cybersecurity.  

Panels will cover the security of the healthcare sector, strategies for psychological defense against cyberattacks, and the critical role of the sector during mega events. These discussions aim to address specific sector vulnerabilities and broader resilience strategies in the face of evolving cyber threats.  

Child protection in cyberspace  

Concurrent with the GCF Annual Meeting, the Child Protection in Cyberspace Global Summit will take place on Oct. 2-3 in Riyadh.  

This summit will bring together key stakeholders worldwide to ensure that children are safe and protected in cyberspace. The event is held in collaboration with ITU, UNICEF, GCF, the DQ Institute, and WeProtect Global Alliance.  

“Protecting children online is a shared responsibility,” said ITU Secretary-General Doreen Bogdan-Martin. “With today’s children spending an increasing amount of time online, it is crucial to protect and empower them. The Child Protection in Cyberspace Global Summit will bring together leaders from all sectors to ensure our youngest users can thrive online.”  

The summit will convene prominent figures from government, international organizations, academia, and the private sector to explore multi-stakeholder collaboration for enhancing child protection in cyberspace. The second day will conclude with a high-level roundtable themed “Advancing Collective Action for Child Protection in Cyberspace.”  

“We must work together to make the Internet a safe place for children to learn, socialize, and express themselves,” said UNICEF Executive Director Catherine Russell. “This Summit marks an important opportunity to coordinate global efforts to maximize the benefits of digital technology in children’s lives while protecting them from harm.”  

The summit aims to achieve four key objectives: consolidating global efforts and advancing collective action; enhancing the global response to pressing challenges; mitigating emerging threats facing children in cyberspace; and ensuring child protection resonates with the agenda of global decision-makers.  

These objectives align with the goals of the Child Protection in Cyberspace initiative and support the UN Sustainable Development Goals 4, 5, 16, and 17 under the 2030 Agenda for Sustainable Development.  

“We are gathering in Riyadh because we all recognize that as the risks to children in cyberspace grow in number and complexity, we must collaborate to develop innovative partnerships to advance our collective efforts to protect them,” said Majed Al-Mazyed, governor of Saudi Arabia’s National Cybersecurity Authority, speaking on behalf of the GCF Board of Trustees.  

The event will focus on finding pathways toward a safer cyberspace for children, including designing new collaborative approaches and mechanisms to enhance responsiveness to emerging technological threats.  

“What we need today is coordinated, multi-stakeholder collaboration that enhances not only children’s safety and well-being in cyberspace but also their cyber literacy, as our highest priority,” said Yuyhun Park, founder of the DQ Institute.  

A 2022 GCF global report found that 72 percent of children worldwide have experienced at least one type of cyber threat, with the most prevalent being unwanted ads and inappropriate content. Nearly one in five children reported facing bullying or unwanted sexual advances.  

“Child exploitation is an urgent and growing problem. We need to focus on preventing harm and work together for a cyberspace designed to protect children globally from exploitation,” said Iain Drennan, executive director of WeProtect Global Alliance.


Saudi-Canadian industrial ties strengthen as minister explores investment opportunities

Saudi-Canadian industrial ties strengthen as minister explores investment opportunities
Updated 01 October 2024
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Saudi-Canadian industrial ties strengthen as minister explores investment opportunities

Saudi-Canadian industrial ties strengthen as minister explores investment opportunities

JEDDAH: Saudi-Canadian industrial ties are set to strengthen as a top minister from the Kingdom embarks on a three-day visit to explore investment opportunities.

The Minister of Industry and Mineral Resources, Bandar bin Ibrahim Alkhorayef, began his visit to the North American country on Sept. 30, accompanied by a delegation of leaders from the industry and mining sectors.

With stops in Ottawa and Toronto, the delegation plans to hold strategic meetings with government officials and private sector leaders, according to a press release by the Ministry of Industry. 

This trip follows a similar visit to the US earlier in September, which focused on enhancing industrial and mining cooperation, strengthening bilateral relations, and attracting high-quality investments to the Kingdom.

The meetings in Canada will involve signing memoranda of understanding to support the development of the industrial and mining sectors.

In a post on X, Alkhorayef said: "My official visit to Canada began with a tour of the Toronto Stock Exchange (TSX), during which I met with the CEO of the exchange and a number of listed mining companies. We reviewed investment opportunities in the mining sector, the promising potential that the Kingdom has, in addition to the incentives and capabilities provided to investors."

Saudi non-oil exports to Canada amounted to SR140 million ($37.33 million) in 2023, primarily in ordinary metals and their products, as well as regional plant products. 

Meanwhile, the total non-oil imports from Canada during the same year reached SR2.89 billion, encompassing items such as locomotives and railway lines, pharmaceutical products, optical and imaging instruments, as well as electrical devices and equipment.

The two countries have resolved a political crisis that began in 2018 and led to a five-year severance of relations. 

The Saudi Ministry of Foreign Affairs announced the decision to restore ties in May 2023, following discussions between Saudi Crown Prince Mohammed bin Salman and Canadian Prime Minister Justin Trudeau during the Asia-Pacific Economic Cooperation Forum in Bangkok in November 2022.

The delegation will explore the latest digital financial technologies in the stock market, meet with prominent global companies in the mining and geological survey sectors, and visit the University of Toronto, along with institutions focused on industrial innovation and human capacity development.

The Saudi minister will participate in a roundtable meeting organized by the Saudi-Canadian Business Council in the presence of Edith Dumont, lieutenant governor of Ontario, along with the Associate Minister of Mines for the province, Stephen Crawford.

The meeting will address the promising opportunities in the Kingdom’s industrial and mining sectors, the potential and incentives offered to foreign investors, and the relative advantages of doing business in Saudi Arabia.

Alkhorayef will visit the University of Toronto to learn about its academic programs supporting the development of the industrial and mining sectors, human-resource development programs, and acquiring high skills in mining operations.

He will also meet with Sebastian Goodfellow, the director of the university’s Lassonde Institute of Mining, as well as a group of Saudi students studying in Canada, according to the Saudi Press Agency.

In Ottawa the minister will hold a series of governmental meetings, including a discussion with the Minister of International Development, Ahmed Hussen, the Minister of Innovation, Science, and Industry, Francois-Philippe Champagne, and the Mining Industry Human Resources Council Executive Director Ryan Montpellier. 

Additionally, the Saudi minister will visit the Ministry of Energy and Resources and the Geological Survey of Canada.