Support to industrialization
The restructuring of the Saudi industrial sector is aimed at vertical expansion by boosting existing industries, and horizontal expansion by increasing local content in the military and security fields. Small and medium-sized enterprises are also receiving full-fledged support.
The Saudi Industrial Development Fund (SIDF) has increased funding for projects as part of its endeavor to offer incentives to listed Saudi stock companies, and its initiative to encourage private enterprises to go public. This is aimed at attracting investments in stock companies and giving incentives to develop their projects.
The SIDF is also encouraging unlisted private enterprises to enter into public offerings and convert into stock companies to take advantage of SIDF funding, as part of its efforts to help realize Saudi Vision 2030.
An extremely important objective of the Vision is to avail of the Kingdom’s natural resources, including minerals such as the aluminum, phosphates, gold, copper, uranium and other metals. Work is underway to develop this sector and supply mineral resources to national industries and the market. However, the contribution of this sector to the GDP is still below expectations. Therefore, the government is seeking to develop this vital sector and raise its contribution to the GDP to SR 97 billion and create some 90,000 additional jobs by 2020.
The government has introduced structural reforms and launched several projects including intensification of mineral exploration efforts, simplification of private investments and streamlining of the licensing processes in this sector. The reforms include creation of an integrated database on Saudi investment potentials, development of infrastructure, enhancement of financing methodologies, and establishment of centers of excellence to support industrial projects.
Numerous public-private-partnership projects will be implemented, competitiveness will be boosted and the productivity of national companies will be increased through international partnerships, contributing significantly to economic growth and transfer of knowhow.