Investment opportunities in Saudi Arabia: An Outlook of Vision 2030
Are you harboring thoughts of operating your business in Saudi Arabia? Then you should plan your business according to these sectors because of the various benefits you get. The KSA has been redefining its economy through diversification and productivity-based ventures in several industry sectors. Let’s look at the best opportunity sectors based on Saudi Arabia’s current circumstances to operate your business.
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 success in many upstream and midstream projects in a number of commodities, has recently transformed the Saudi mining sector.
Saudi Arabia has invested over $40 billion in fully integrated mining value chains in partnership with the private sector and built on its rich mineral resources. In addition to significant production in precious and base metals, a mine to metal aluminum value and phosphate production has propelled the Kingdom to become the third largest global supplier of fertilizer. Mining now delivers a $17 billion contribution to national GDP. ( Source National industrial development & logistic programme, Vision 2030)
Saudi Arabia is aiming 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. As part of the Vision 2030 one hundred existing factories will be transformed into model factories as part of our industry 4.0 revolution, through an investment of $800 million. ( Source National industrial development & logistic programme, Vision 2030)
Saudi Arabia is seeking to create the right conditions to transform Saudi Arabia into a logistics hub, including improving infrastructure, transport networks, land, sea, and airports. 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, includes the construction of five new airports, the expansion of three air freight stations and the construction of two new 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. ( Source National industrial development & logistic programme, Vision 2030)
Saudi Arabia aims to maximize the use of renewable energy to diversify local energy sources, stimulant economic development, ensure sustainable growth and reduce pollutions. Close to 60 gigawatts of renewable energy 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 by 2020 while the current gas distribution network is expanded and enhanced. ( Source National industrial development & logistic programme, Vision 2030)
The Government of Saudi Arabia is creating a conducive environment for investment as outlined above, and this is the right time to take advantage of business opportunities and succeed.