The Kingdom celebrates the success of its economic diversification strategy as 113,000 new jobs in non-oil sectors employed local Saudis over the past financial year.
Saudi Arabia’s National Industrial Development and Logistics Program (NIDLP) announces the launch of its 2023 annual report, “Expanding Horizons”, marking a landmark year for the Kingdom as it seeks to diversify its economy.
For the first time in the nation’s history, non-oil activities account for 50 percent of its Gross Domestic Product (GDP), growing at a yearly rate of 74 percent in 2023.
Established in 2019, the NIDLP has been a driving force in this shift, as it aims to transform Saudi Arabia into a leading industrial power and global logistics hub through a focus on four main non-oil sectors: energy, mining, industry, and logistics. “Expanding Horizons” reveals that projects launched by the program have been crucial in moving away from a reliance on oil, making up more than 35 percent of non-oil GDP – a total of over 345 billion Saudi Riyals (SAR), the equivalent of nearly 92 billion USD. To date, it has initiated 283 projects, with 102 completed.
The program is a central pillar in helping to achieve the nation’s Vision 2030 goals to diversify and stabilize the national economy by boosting non-oil sectors. Of particular note, a booming service sector has seen exports grow by 40 percent to a value of 182 billion SAR (~48.5 billion USD), underpinning 2 percent growth in non-oil exports.
The program has also had a significant impact on local employment, with the number of workers exceeding 269,000, including more than 113,000 Saudi men and women.
Notable project highlights focused on in the report include:
Energy
In the energy sector, gas injection began in the processed gas storage project in the Hawiyah reservoir in Unayzah, with a record storage capacity of 2.0 billion cubic feet of natural gas per day. Additionally, six new solar energy projects with a capacity of 6.2 gigawatts were launched to increase the percentage of renewable energy.
Mining
In the mining sector, the General Geological Survey program completed over 30 percent of the total area of the Arabian Shield in 2023. The initiative was launched to explore the Arabian Shield and has worked to maximise the impact of the mining sector, making it the third pillar of the Saudi economy.
Industry
In the industrial sector, four new special economic zones were launched, bringing the total number to five. HRH Prince Mohammed bin Salman announced the establishment of the National Automotive Company (CEER), the first automotive company in Saudi Arabia dedicated to producing electric vehicles. Furthermore, an agreement was signed with Lucid Motors to establish the first factory for the production of electric cars, and the Public Investment Fund signed an agreement with Hyundai Motor Company.
Logistics
In the logistics sector, a significant achievement in 2023 was the launch of the general plan for logistics centres as part of the Kingdom’s transformation into a global logistics platform. This plan supports the Kingdom’s vision by leveraging its unique geographical location that connects three important continents.
Speaking on the launch of the report NIDLP CEO Suliman bin Khaled Al-Mazroua says that their progress to date has been exceptional.
“Without exaggeration, I can say that 2023 is a year of great accomplishments for the program, with many of our 2025 targets already met. This report demonstrates the vital role of work across sectors in driving a diversification of the economy, underpinning a historic shift to non-oil activity and positively impacting the lives of the Saudi people. Many congratulations to the team for their successful efforts to date – we look forward to building on this great work over the rest of 2024,” says Al-Mazroua.
About the NIDLP
Launched in 2019, the National Industrial Development and Logistics Program is transforming the Kingdom into a leading global player in the energy, mining, logistics and industry sectors. These high-growth sectors are diversifying Saudi Arabia’s economy, creating jobs and securing sustainable employment growth.
It appears the Kingdom has entered a new green era. By investing heavily in renewable energy solutions such as wind and solar, the Program aims to promote a clean energy and low carbon future, supporting Saudi Arabia’s goal of net zero emissions by 2060.
Amid the global effort towards reducing emissions, Saudi Arabia’s minerals – valued at USD 1.3 trillion – are in high demand. The Program has made improvements to industry regulations and legislation, positioning the Kingdom as a potential leading market in mining too.
“Through programs such as Made in Saudi to enhance local content in oil and non-oil sectors, the Program is paving the way for Saudi Arabia’s Fourth Industrial Revolution which will harness new technologies for the betterment of our society,” says Al-Mazroua.
Notes from the Editor: For more information on Vision2030 click here, and to read the full report, click here.
