Saudi Arabia to sign deals worth over $63 bln as part of new industrial program

Saudi Arabia witnessed today the launch of the National Industrial Development Program, which aims to fuel up 12 sectors in the Saudi economy. (File photo: AFP)

Saudi Arabia witnessed the launch of the National Industrial Development and Logistics Program on Monday, which aims to fuel up 12 sectors in the Saudi economy, including energy, petrochemicals, mining and the automotive industry.

In an interview with Al Arabiya, Saudi Minister of Energy, Industry and Mineral Resources Khalid al-Falih revealed that new memorandums will be announced, most of which have not been previously revealed as part of the initiatives sponsored by the Industrial Development Program.

According to al-Falih, agreements worth 235 billion riyals, equivalent to $63 billion, will be signed on the sidelines of the program, amongst them large-scale agreements in the military industries, as well as a major agreement between Aramco and SABIC. Aramco is set to acquire 70 percent of SABIC, after reaching economic feasibility in the oil to petrochemicals conversion project, and selecting a site location.

Announcements are also expected to be made regarding programs in the Saudi automotive sector worth 40 billion riyals, with a significant presence from private sectors and international companies to get involved.

The National Industrial Development and Logistics Program is set to contribute about 1.2 trillion riyals to the Saudi economy by 2030, which comprises over half the size of the current economy. Domestic production will also increase by more than 700 billion riyals, creating 1.6 million jobs, and raising the value of Saudi Arabia’s exports to more than one trillion riyals.

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Last Update: Wednesday, 20 May 2020 KSA 09:54 - GMT 06:54
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