Doha 22 November 2009 National Industrial Strategy

Transcript:Doha 22 November 2009 National Industrial Strategy:
Doha 22 November 2009 National Industrial Strategy NIS 2020 Several world class industries are already established in Saudi Arabia with focus ranging from oil and petrochemicals, construction, investments and banking, to retail KSA is home to several world renowned multinational companies KSA has embarked on numerous initiatives to further diversify and expand its industrial sector and economy Industrial Cities and zones such as Jubail and Yanbu; a national cluster program has been initiated to spur industrial growth (NICDP); Economic Cities (KAEC, Jizan, Medinah Knowledge City) According to World Bank’s “Doing Business” Report, Saudi Arabia is ranked the 13th most competitive country in the world, up from 67th in 2004 KSA is ranked 61st in “getting credit” and 73rd in “employing workers” Numerous initiatives are being implemented to expand KSA’s knowledge, research, and innovation capabilities KAUST, KACST, KFUPM, DTV, KSU, KAAU These programs aim to leverage the large number of young Saudis who will be critical in expanding the Kingdom’s knowledge based industries (1)- Based on total GDP, World Bank 2008 Saudi Arabia is the largest economy in the MENA region and the 23rd largest in the world(1) 2 3 The Kingdom into 2020 The Home Front: The Goal of Economic Diversification Oil and Related Activities still Dominate the Economy An expanded and successful petrochemical industry. However, other industries have not achieved a similar scale success Contribution of Manufacturing Industry to GDP is Weak Contribution of Manufacturing Industry to Overall Employment is Low Employment Of Saudis in Manufacturing Industry is Low 4 The reliance on the oil sector and the petrochemical industries focused the majority of investments in key urban areas, which resulted in less economic growth and diversification in other regions of the kingdom Industrial exports, especially medium and high tech exports, are very low. Time for the National Industrial Strategy 5 Key Statistics – Census 2007 23,980,038 total inhabitants 17,493,364 Saudis: 0-14 years: 37.2% (3,278,597 M and 3,233,499 F) 15-64 years: 59.3% (5,234,345 M and 5,137,350 F) > 65 years: 3.5% (308,339 M and 301,234 F) Average age is 21.4 years (22.9 M and 19.6 F) Population growth rate: 2.3% INDUSTRY 2020 “ Industry is our strategic option to diversify our economy ” 6 7 KSA is bestowed with natural wealth, but additional efforts are needed for it to become a competitive player in the global economy There is a strong need for diversification and the continued development of