Saudi’s IPI Ascends by 0.8% in Sept. Driven by Mining, Quarrying
Saudi Arabia’s IPI (Industrial Production Index) saw a modest climb of 0.8% in September, a nudge driven primarily by gains in mining and quarrying activities, which noted a 0.6% rise within the month.
This uptick reflects a positive shift from the previous month’s performance where industrial output had contracted.
The manufacturing sector, along with electricity and gas supplies industries, also showed promising signs, each growing by 1% over the same period.
Beyond Oil: The National Industry Strategy (NIS)
The National Industry Strategy (NIS), unveiled in October 2022, marks Saudi Arabia’s committed shift towards a more diversified and sustainable industrial future.
Targeting 12 key sectors, from automotive to renewable energy, the NIS envisions a robust non-oil industrial base, propelling industrial GDP and creating millions of job opportunities by 2035.
Strategic Considerations and Capital
The strategy necessitates a delicate balance between import substitution and fostering a competitive domestic market.
Key to this is the integration of value chains and leveraging technology to build resilience against global supply chain disruptions.
Additionally, sustainability efforts and nurturing a skilled workforce are pivotal components of this strategic vision.
Capital facilitation is another cornerstone, with programs like Shareek catalyzing investments and the Saudi Industrial Development Fund (SIDF) supporting SMEs with significant loan approvals.
Such initiatives are crucial for fostering an environment ripe for industrial growth and diversification.
Furthermore, the incremental rise in Saudi IPI for September, despite a year-on-year slump, reflects the underlying resilience and the ongoing transformation of Saudi Arabia’s industrial sector.
The Kingdom’s proactive strategies reveal a comprehensive approach to not just recover but thrive in a post-oil economy, anchoring its future on a diversified industrial base that promises sustainability and innovation.
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