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Saudi Arabia will unveil on Monday its National Program for Industrial Development and Logistics (NIDLP) as the kingdom hopes to attract 1.6 trillion riyals of foreign investment by 2030 in various sectors, as well as in the sectors of logistics, mining and energy.
The latest event is part of the government's economic diversification plan, which aims to reduce its dependence on oil and generate new sources of revenue by improving the existing elements of the Kingdom's commercial landscape while developing new ones. capabilities. The all-powerful crown prince of the kingdom, Mohammad Bin Salman, 33, the architect of the country's economic restructuring program, known as Vision 2030, will be honored Monday at the Ritz Carlton , as the government unveils its plan to redesign four strategic sectors.
The kingdom seeks to increase the contribution of its non-oil economy to the gross domestic product by developing a local manufacturing sector and attracting foreign investment. The non-oil sector currently accounts for about 40% of GDP. The collapse of oil prices in mid-2014, rising from a high of $ 115 a barrel to less than $ 30 a barrel in 2016, has accelerated the process of restructuring the economy. However, even now that the price of oil has risen to around $ 60 per barrel and the kingdom has increased its income and reduced its budget deficit, the government has no doubt about the continued economic transformation of its economy.
Foreign direct investment and the development of the kingdom's industrial and mining sectors are among the main pillars of Vision 2030. The government rolls out the red carpet to welcome NIDLP participants who will be granted visas upon their arrival. The conference organizers have drawn up separate investment flyers for each sector and international investors can arrange direct meetings with government officials and local companies for potential direct investment partnerships, according to an email from the chairman of the conference and the kingdom's energy minister, Khalid Al. Falih.
Participants include senior executives from international and regional giants from the sector, including the major Australian mining group Alcoa, Arcelormittal Steel Titan, Baker Hughes, Bechtel, Boeing and Lockheed Martin; China Petrochemical Corporation, Dow Chemicals, Port Operator DP World, ExxonMobil, Ford Motor Vehicle Manufacturers and Mitsubishi Corporation; the industrial giant GE and the big tanker Halliburton.
Senior ministers, local oil and gas companies, mining companies and transport companies such as Aramco, Bahri and Maaden, as well as representatives of government agencies responsible for managing foreign direct investment in the Kingdom will be also present.
Mr Al Falih, who chairs this one – day event, told Bloomberg that 70 investment agreements could be concluded.
"The cornerstone of Saudi's economic transformation strategy around Vision 2030 is to structurally change the business model so that investment, not government-run oil spending, is the engine of economic growth," said Ehsan. Khoman, head of research in the Middle East and North Africa. MUFG Bank, Japan's largest lender, said.
The NIDLP program "demonstrates the length and seriousness with which the Saudi authorities are willing to provide a credible level of clarity and guidance for their strategy of attracting greater foreign direct investment, strengthening real GDP growth, and globally support investors confidence in the viability of the transformation agenda. "
Under the Vision 2030 program, Saudi Arabia aims to raise foreign investment to 5.7 percent of the country's GDP by 3.8 percent. Last year, FDI grew by 127 percent, according to Saudi Arabia's General Investment Authority. The World Bank has ranked Saudi Arabia fourth among the G-20 reformers in its latest Doing Business report.
In the energy sector, the kingdom offers investors the opportunity to be part of the renewable energy strategy that will develop eight solar parks. It also presents an energy manufacturing project including wind towers and wind turbine blades. In the logistics sector, the kingdom wants to create car manufacturing plants and develop logistics areas near major ports. It also offers a concession for the operation and maintenance of the Mashaaer metro line and a wheel manufacturing plant for trains, among other projects.
The industrial sector presents the greatest number of opportunities for international investors, ranging from aerospace to automotive, aquaculture, pharmaceuticals, chemicals and machinery & equipment. . The kingdom also wants to develop its mining and minerals sector and invites international companies to invest in prospecting for gold, zinc and copper, in addition to investing in the creation and production of gold. operation of steel and aluminum production plants.
"The NIDLP is one of the 13 pillars of Vision 2030 … and one of the most important points of economic prosperity, employment, placing Saudi Arabia on the map of the manufacturing and manufacturing sectors. logistic. [sectors]Said Abdulla Al Zamil, managing director of Zamil Industrial, to The National. "We are all waiting for the launch of the program as a private sector and foreign investors, who can participate in the new Saudi economy, which will unlock the country's potential. "
The kingdom, according to Mr. Al Zamil, whose company has been manufacturing for 45 years with activities in India, Vietnam and Egypt, "previously had silos between logistics and manufacturing."
However, "the joint launch of both initiatives only proves that Saudi Arabia views the manufacturing sector as a whole much more seriously than in the past.We want to be of global importance and be a force with which it is necessary to count."
Last updated: January 27, 2019 13h20
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