NIDLP

SAUDI SETS THE STAGE FOR INDUSTRIAL TAKE-OFF

The kingdom’s National Industrial Development & Logistics Program (NIDLP) has proven itself to be an investment magnet. A pillar of Saudi Vision 2030, the programme aims to transform Saudi Arabia into a leading industrial powerhouse and global logistics hub, leveraging its mining and energy sectors, and gearing the industry towards the 4th Industrial Revolution (4IR).

NIDLP aims to enable private sector investment of SAR 1.4 trillion by 2030. This includes co-ordinating efforts and plans with more than 40 entities in four main sectors: energy, mining, industry, and logistics.

The programme has already achieved numerous successes since it was rolled out. This includes launching the largest geological survey of its kind for the Arabian Shield region, boosting international connectivity by adding five new shipping lines to the kingdom's ports, inaugurating the first locally manufactured fast intercept boat, initiating multiple utility-scale renewable energy projects, developing a defence industry, and launching the "Saudi Made" scheme.

                  

The programme is just getting started.

Bandar bin Ibrahim Al-Khorayef, the minister of industry and mineral resources, said authorities are studying 145 applications to receive exploration licenses by foreign companies, attracting investments to the tune of USD 32 billion in the mining and mineral sector through nine new projects, which will support the export of mineral products to local and international markets.

As part of NIDLP, Saudi Arabia also implemented successful privatisation initiatives, such as the Saudi Ports Authority project to develop and operate container terminals in several ports, and energy supply privatisation represented by REPDO projects, which include Sakaka Solar Energy and Dumat Al-Jandal Wind Power.

Targeted investments include a factory for steel plates with an investment exceeding USD 4 billion, which aims to provide factories for building ships at King Salman Global Maritime Industries Complex in Ras Al-Khair, and a factory for inputs of electric vehicle batteries with a value of USD 2 billion. These are “in addition to other projects to produce minerals, such as aluminium and steel plates, and a refinery for copper and zinc, which is expected to witness an increasing demand locally thanks to manufacturing trends in the Kingdom of Saudi Arabia,” according to the Saudi Press Agency, noting that the schemes will provide more than 14,500 job opportunities.

Meanwhile, the industry aims to attract investments of more than SAR 1 billion in railway infrastructure, opening the market for new operators. Expansion plans of the railway over the coming years will increase the lengths of railways to more than 8,000 kilometres (km) of new lines. This will boost local and regional connection; double the capabilities of transport through passenger and cargo trains, and the adoption of
modern technologies and advanced technological solutions; increase the competitiveness of Saudi products; and boost the efficiency of supply chains. The new infrastructure will build on the 5,500-km (North Train, East Train, and Haramain High Speed) rail, which has the capacity to carry more than 33 million passengers, and over 70 million tonnes of minerals and goods.

 

By 2025, the government aims to achieve a number of goals set out in the NIDLP plan. These include:

• establishing eight economic zones around the kingdom to support the programme’s sectors;
• increasing local content in the oil and gas sector to 70%;
• completing more than 50% of the geological survey for the Arab Shield;
• achieving local medicine production of 30% of market value;
• activating five national capability centres for Fourth Industrial Revolution technologies;
• reaching 20 logistics hubs, which are connected with proper connections to enable re-export;
• reaching electricity generation efficiency of 40.8%;
• reducing mining licenses issuance time to less than 60 days;
• achieving production capacity of the aquaculture sector to 300,000 tonnes annually;
• increasing local content in the non-oil sectors to SAR 1.24 billion; and
• increasing the percentage of utilised ports by increasing capacity to 70%.

The kingdom is also keeping an eye on the Fourth Industrial Revolution, which leverages cutting-edge technological innovations to maintain the Saudi economy’s competitiveness. 

“As the digital transformation and the Fourth Industrial Revolution reach new heights in the sectors of industry, energy, mining, and logistics, the urgency to adopt cutting-edge technologies in these sectors is required more than ever,” the NIDLP document notes. “Such shift will bring some difficulties in workers adapting to this major change. Thus, leading to layoffs or hiring technology experts from outside the kingdom.”

anxious about demand due to China’s COVID-19 lockdowns, and a more subdued global economic outlook. Copper was among the biggest decliners, falling 16% during the first half of the year.