The National Industrial Development and Logistics Program (NIDLP) is one of 13 Vision Realization Programs under Saudi Vision 2030. NIDLP is focused on transforming Saudi Arabia into an industrial powerhouse and a global leader in logistical services by leading and guiding growth in four key sectors: Mining, Industry, Logistics and Energy. By 2030, the program aims to stimulate private sector investments worth more than $ 450 billion.
NIDLP aspires to:
• Transform the Kingdom into a pioneering industrial powerhouse and a global logistics hub in promising growth sectors (with a focus on Industry 4.0).
• Create major employment opportunities for Saudis.
• Improve the Kingdom’s trade balances and maximizing local content.
The Saudi mining sector offers a wide array of investment opportunities for global companies operating across the mining value chain. The Saudi Vision 2030 goals of increasing employment and GDP contributions from mining, combined with recent successes in many upstream and midstream projects in a number of commodities, have recently transformed the Saudi mining sector.
Today, NIDLP offers investment opportunities supported by promising geologic prospects, enhanced data access, a robust and enabling regulatory environment with competitive terms, growing supply chains, and access to healthy regional and international markets.
Saudi Arabia has invested over $ 40 billion in fully integrated mining value chains and built on its rich mineral resources in partnership with the private sector. In addition to significant production in precious and base metals a new phosphate mining and production project has propelled the Kingdom to become the third largest global supplier of fertilizer. Mining now delivers a $ 17 billion contribution to national GDP.
NIDLP aims to build a sustainable and competitive manufacturing sector to increase its share of the national GDP and job market, targeting investment opportunities in the industrial sector worth more than $ 300 billion. This includes further developing the chemicals sector -particularly in specialty chemicals – and commercial and military manufacturing alongside developing automotive manufacturing to take advantage of significant local and regional demand.
The program will also develop pharmaceutical and medical supplies industries and leverage the existing ecosystem and proximity to MENA markets. Moreover, the transformation of the Kingdom’s power sector creates opportunities to develop the renewable energy equipment manufacturing sector, which can serve both local and regional demand.
NIDLP plans to grow the Kingdom’s food processing activities in targeted segments with a competitive advantage, as well as develop the aquaculture sector to compete on a global scale, leveraging Saudi Arabia’s natural endowment and quality production. The Kingdom also has a goal to localize %50 of military capabilities, which creates an opportunity for a local military manufacturing sector.
One hundred existing factories will be transformed into model factories as part of our industry 4.0 revolution, through an investment of $ 800 million. Moreover, five capability centers will be established to showcase new technologies and provide various services and training programs to support the transition to industry 4.0.
NIDLP seeks to create the right conditions to transform Saudi Arabia into a logistics hub, including improving infrastructure, transport networks and logistics standards. The program aims to enhance the attractiveness of the logistics sector and increase its GDP contribution by $ 59 billion by 2030 through total investments worth more than $ 35 billion.
NIDLP aims to develop freight and passenger services with the construction of 5 new airports, the expansion of 3 air freight stations and the construction of over 20 new passenger railway stations, as well as the construction of over 4,000 kilometers of railway lines for freight and passenger transport. Together, these developments aim to improve the domestic infrastructure and enhance Saudi Arabia’s capacity for export, enabling it to fully leverage its strategic location as a hub connecting three continents; Africa, Asia and Europe.
The program will create conditions that will improve the Kingdom’s ranking to 25th by 2030 in the World Bank Logistics Performance Indicator.
NIDLP aims to maximize the use of renewable energy to diversify local energy sources, stimulate economic development, ensure sustainable growth and reduce pollutions. 60 gigawatts of renewable energy capacity will be introduced by 2030 by implementing 35 projects around the Kingdom using several technologies including solar, wind and concentrated solar power, while focusing on localizing manufacturing and driving job creation and regional development.
To support industrial growth and clean electricity generation, gas production capacities will be increased to 18 billion standards cubic feet per day by 2020 while the current gas distribution network is expanded and enhanced.
To achieve the aspirations and targets of NIDLP, various enablement initiatives have been designed across components such as financial enablement, export enablement, industry 4.0, research, development and innovation (RDI), industrial cities and infrastructure. For funding, the Saudi Industrial Development Fund (SIDF) will transform to become the key financial enabler of NIDLP. SIDF’s capital will increase from $ 17.3 billion to $ 28 billion, and the fund will expand to serve all NIDLP sectors and offer more products and services, while a Saudi Export Import (EXIM) Bank has been established to support non-oil exports with an initial capital of $ 1.3 billion (planned to reach $ 8 billion in the coming few years to support local exporters).
Export enablement will focus on improving the efficiency of the export environment by addressing challenges hindering the attractiveness of Saudi exports and developing the capabilities of exporters by improving competitiveness, export plans and marketing. Finally, NIDLP will use various means to promote and raise awareness of Saudi products and industries across international markets to improve international buyer perceptions.
To accelerate the fourth industrial revolution in the Kingdom, a fund of $ 800 million has been allocated to upgrade hundreds of manufacturing companies by adopting industry 4.0 technologies . Additional investments will be made to address industrial infrastructure needs,as well as initiatives targeting human capability building and RDI, will further enable the Kingdom to establish a competitive advantage among its 4 sectors.