Saudi Minister of Industry and Mineral Resources, Bandar Alkhorayef, and UNIDO Director-General Gerd Müller signed a new agreement to create a framework for strategic cooperation between the Saudi Ministry and the organization. The signing took place in Riyadh during the Multilateral Industrial Policy Forum (MIPF), which was co-hosted by both the ministry and UNIDO.
Focus areas for industrial development
This agreement seeks to boost industrial development in the Kingdom by concentrating on several vital areas, including the formulation of industrial policies tailored to specific sectors, improving the collection and analysis of industrial data to aid decision-making, and encouraging investment in key industrial fields.
Technology transfer and workforce development
Furthermore, the strategic partnership outlines initiatives to transfer cutting-edge technology and implement modern techniques to enhance industrial processes. It aims to integrate local industries into global value chains, boost their competitiveness, and expand the presence of Saudi products in both domestic and international markets.
Supporting skills and accelerating growth
The agreement also encompasses training and skill development for the industrial workforce, alongside any additional areas mutually agreed upon within the framework of cooperation. This partnership is anticipated to accelerate industrial growth in the Kingdom, contributing to the goals of Saudi Vision 2030 by diversifying the economy and establishing Saudi Arabia as a leading industrial hub in the region.
Container traffic growth
In a recent report, The General Authority for Statistics (GASTAT) announced a 14.6 percent increase in container traffic at Saudi Arabian ports compared to the previous year. The report indicated that total container traffic surpassed 5 million TEUs, with inbound traffic reaching 3.4 million TEUs and outbound traffic totaling 2.2 million TEUs.
Increase in ship and passenger traffic
Additionally, the report highlights a remarkable 33.8 percent rise in ship traffic at the Kingdom’s ports year-over-year, with a total of 19,082 ships docking in 2023. King Fahad Industrial Port in Yanbu topped the list with 6,538 ship arrivals, followed by Jeddah Islamic Port with 4,411 ships and King Abdulaziz Port in Dammam with 2,516 ships. Passenger traffic also saw an 11.5 percent increase in 2023, exceeding 1 million passengers, with Jazan Port recording the highest numbers at 484,598 arrivals and departures.
Global ranking improvement
In August 2024, Saudi Arabia’s ports significantly enhanced their global ranking in annual container handling, moving from 16th to 15th among the world’s top 100 ports, as reported by “Lloyd’s List.” Jeddah Islamic Port made notable progress, climbing from 41st to 32nd place, handling 5,586,074 standard containers in 2023, a 12.6 percent increase from 2022’s 4,960,120 containers.
Minister’s U.S. visit
Last month, Alkhorayef visited the United States to strengthen cooperation in the fields of industry and mining, enhance bilateral relations, attract investments to the Kingdom, and explore opportunities in critical industrial sectors such as aviation and space.
Engaging with industry leaders
During his visit, Alkhorayef met with government officials and executives from prominent American companies to discuss knowledge transfer, innovation, and advanced manufacturing technologies pertinent to strategic industrial sectors in Saudi Arabia. He also examined the latest smart solutions in mining operations.
Supporting UNIDO initiatives
The minister participated in an event organized by the Kingdom in collaboration with UNIDO, aimed at garnering support for Riyadh’s hosting of the 21st session of the UNIDO General Conference in 2025, as well as the recent MIPF. This initiative seeks to strengthen the Kingdom’s relationship with UNIDO and promote innovative industrial solutions and policies for regional and global industrial development.
Mining exhibition participation
Alkhorayef also traveled to Las Vegas, Nevada, to attend “MINExpo,” the world’s premier mining exhibition, where he engaged with representatives from major mining firms to explore cutting-edge mining technologies. In Los Angeles, California, he participated in a roundtable discussion with leaders from significant U.S. companies about promising sectors outlined in the National Industrial Strategy, the opportunities they present, and the incentives available for foreign investors. Additional bilateral meetings with private sector leaders were also scheduled.
Read more: Saudi Arabia’s non-oil exports surge to $7.32 billion in August 2024
Growth in industrial facilities
The number of factories and industrial facilities in Saudi Arabia has experienced remarkable growth since the introduction of Vision 2030, increasing by 60 percent from 7,206 in 2016 to 11,549 in 2023.
As part of Vision 2030, Saudi Arabia aims to position the industrial sector as a key pillar of its economy. To support this goal, the National Industrial Strategy was launched in 2022, with the ambition to expand the number of factories nationwide to 36,000 by 2035, representing a 3.5-fold increase.
The industrial strategy is designed to elevate Saudi Arabia into a prominent industrial hub, ranking among the top 15 globally by 2035. It focuses on establishing a versatile national industrial economy and transforming the Kingdom into an integrated regional industrial center to address growing demand, while also striving for global leadership in the production of specific commodities.
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