| The National Industrial Development and Logistics Programme (NIDLP) is yet another milestone that would allow the Saudi Arabian economy to realise its full potential.
The all-encompassing NIDLP features more than 330 initiatives that were put in place to achieve more than one-third of the objectives of the kingdom's Vision 2030 programme, which aims to attract investments of SAR 1 trillion and SAR 600 billion in value, and create 1.6 million jobs.Vision 2030 will have a significant impact on the kingdom's economy, raising GDP by SAR 1.2 trillion, and increasing local content by SAR 700 billion.
Meanwhile, the NIDLP will seek to streamline the country’s state agencies, as well as attract local and international investments through four main sectors including energy, industry, mining, and logistics. This will enable the kingdom to be a leading industrial power and global logistics hub.
With a robust budget for 2019, which aims to invest SAR 70 billion on
infrastructure developments, the country’s non-oil economy and the
private sector should see a surge in activity, helping to offset volatility in
crude oil prices.
At the same time, both the Saudi Arabian Basic Industries (SABIC) and Saudi Aramco are heavily focused on developing a world-class petrochemicals industry that should rival any in the world. Their string of collaborations with each other and a host of international petrochemical companies ensure that the Saudi government extracts the maximum value from its abundant crude oil and natural gas resources.
As these projects are rolled out, the Saudi economy could beat the more subdued outlook of 1.8% GDP growth for this year, estimated by the International Monetary Fund.
Fitch Solutions, which has a more upbeat growth outlook of 2.3% for Saudi GDP, expects the government’s efforts to step up non-oil sector investment and maintain cost-of-living and public sector employee allowances, will likely encourage private investment and business activity, as well as provide tailwinds to consumption. .
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