Saudi Arabia pushes forward with industrial and mining strategies at UNIDO MIPF 2024

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Bahrain’s Minister of Industry and Commerce Abdulla Adel Fakhro. Screenshot

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Oman’s Minister of Commerce, Industry, and Investment Promotion Qais bin Mohammed Al-Yousef. Screenshot

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Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Alkhorayef. Screenshot

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Updated 4 min 54 sec ago

MIGUEL HADCHITY

October 23, 2024 14:37

Saudi Arabia pushes forward with industrial and mining strategies at UNIDO MIPF 2024

Saudi minister of industry and mineral resources outlined the Kingdom’s strategy of focusing on 12 key sectors
Saudi Arabia’s strategic position enables it to become both an industrial powerhouse and a global logistics hub

Updated 4 min 54 sec ago

MIGUEL HADCHITY

October 23, 2024 14:37

RIYADH: Saudi Arabia’s Minister of Industry and Mineral Resources has emphasized the importance of industrial and mining sectors in achieving the country’s Vision 2030 goals of economic diversification.

At the UN Industrial Development Organization Multilateral Industrial Policy Forum panel discussion in Riyadh, Bandar Alkhorayef said that the Kingdom’s vision encompasses economic diversification, underlining that from the initiative’s beginning, it was evident that sectors like industry and mining held the greatest potential for achieving this diversification.

He underscored Saudi Arabia’s demographic advantage, with the majority of the population under 30, as a significant asset for the nation’s future. “We have a country that’s full of young people. This is a great asset to be used and considered,” he said.

Alkhorayef outlined the Kingdom’s strategy of focusing on 12 key sectors, grouping them into three pillars. The first group includes national security and resilience divisions, such as food security, pharmaceuticals, water security, and defense.

In line with Saudi Vision 2030 and the National Industrial Strategy, the Multilateral Industrial Policy Forum #MIPF2024 kicks off today, organized by the Ministry of Industry and Mineral Resources in partnership with UNIDO.#Industrial_Policies_For_A_Sustainable_Future pic.twitter.com/BY6SzDfNDm

— وزارة الصناعة والثروة المعدنية (@mimgov) October 23, 2024

The second pillar focuses on leveraging Saudi Arabia’s competitive advantages, particularly its natural resources like oil, gas, petrochemicals, and minerals. “We have two very important competitive advantages: our natural resources and our geographical location,” he said.

He added that Saudi Arabia’s strategic position enables it to become both an industrial powerhouse and a global logistics hub, with downstream chemicals and metal refining playing key roles.

The third group of products emphasizes research, innovation, and human capital development. “How can we ensure that Saudi Arabia is well positioned to take advantage of the next trend?” Alkhorayef questioned, highlighting the need for readiness in the face of rapid global change.

The panel also focused on regional collaboration, with Alkhorayef highlighting that Saudi Arabia and the UAE are well-positioned to attract investments in key sectors. “We are working with investors in both ways to ensure that investments do come to the sector, to ensure also the right investment coming in terms of the right product, but be very mindful of choosing the right technology,” he said.

He further emphasized Saudi Arabia’s global ambitions, saying: “We are building manufacturing for the future, and it’s not only for Saudi Arabia, it’s for the region, for the global community.”

Bahrain’s Minister of Industry and Commerce Abdulla Adel Fakhro praised the Kingdom’s leadership in industrial transformation.

“Saudi Arabia today is leading the region in transforming their industrial sector, and this is something we are very proud of,” Fakhro said.

He also shared Bahrain’s progress, citing the country’s industrial strategy launch in 2022, which focuses on the Fourth Industrial Revolution, digital technology, environmental, social, and governance awareness, and supply chain efficiency.

Oman’s Minister of Commerce, Industry, and Investment Promotion Qais bin Mohammed Al-Yousef discussed his country’s diversification efforts to make manufacturing one of the top five sectors driving the country’s economy away from reliance on oil and gas.

Human resource development crucial for Saudi industrial sector, official highlights

Updated 4 min 13 sec ago

Reem Walid

October 23, 2024 15:30

Human resource development crucial for Saudi industrial sector, official highlights

Updated 4 min 13 sec ago

Reem Walid

October 23, 2024 15:30

RIYADH: Developing human resources within Saudi Arabia’s industrial sector is crucial to staying on top of the market, particularly as technology continues to evolve, an official has emphasized.

Speaking on the first day of the Multilateral Industrial Policy Forum, held in Riyadh from Oct. 23-24, Minister of State and member of the Saudi Cabinet Hamad bin Mohammed Al-Sheikh highlighted that continuing education and training on the job is what will help the Kingdom flourish.

This falls in line with the Kingdom’s goal to multiply the industrial gross domestic product by roughly three times by 2030, double the job opportunities to 2.1 million, and aim for industrial exports of SR557 billion ($148 billion), according to Set Up Saudi, which helps businesses become established and grow in Saudi Arabia.

“Creating continuing education and training on the job through introducing different kinds of short or mini-courses to upgrade the level of skills because, without skills and continuous training, the technology is changing. So, you need to upgrade your human resources with the professional development programs, which is also introduced in the form of many courses and professional degrees or certificates,” Al-Sheikh said, during a ministerial roundtable titled “Leveraging industrial policy for SDG impact – Practical insights.”

He added: “Furthermore, through joint partnerships with vocational and technical training, they have specific programs where they hire before even training. They sign, with the trainee, the contract. Many of these colleges have agreements with Aramco, with SABIC, with Ma’aden, and then they start also training the local people on the comparative advantage that they have in their locality.”

The minister of state further emphasized that such initiatives are crucial to ensuring that industrialization includes all segments of society while maximizing efficiency to deliver the greatest value for the country.

“In respect of industrialization and how it could be inclusive, I think Saudi Arabia has done its effort to make it multi-dimensional, multi-regional in all of its work. All strategies are aligned and take a process in the planning, strategic planning such that all parties involved are aligned with,” Al-Sheikh said.

He added that the Kingdom’s National Investment Strategy takes into consideration different regions and segments of society.

“We have 36 industrial cities that are across the regions of Saudi Arabia in order not to leave any kind of region from its share of industrialization,” said Al-Sheikh.

The minister of state continued to highlight that the strategy is focused on people, aiming to enhance skills through development programs that ensure both men and women benefit from these industrial advancements.

Coordinated by the Ministry of Industry and Mineral Resources in partnership with the UN Industrial Development Organization under the slogan “Industrial Policies for a Sustainable Future,” the two-day forum aims to support the development of the global industrial sector by formulating effective and innovative policies that keep pace with current global challenges and trends.

The event is the first of its kind to be held outside the headquarters of the UNIDO in Vienna.

Topics: UN Industrial Development Organization General Conference UN Industrial Development Organization industry

Jordan’s foreign reserves surge by $2.11bn amid economic stability

Updated 23 October 2024

Nour El-Shaeri

October 23, 2024 14:16

Jordan’s foreign reserves surge by $2.11bn amid economic stability

Updated 23 October 2024

Nour El-Shaeri

October 23, 2024 14:16

RIYADH: Jordan’s foreign reserves, which include gold and special drawing rights, increased by $2.11 billion in the first nine months of the year, reaching a total of $20.23 billion by the end of September, according to official data from the Central Bank of Jordan.

This amount is sufficient to cover the country’s imports of goods and services for 8.1 months. In September alone, foreign reserves grew by $266.8 million. Compared to the same month last year, reserves have risen by $2.94 billion.

Data also indicated a rise in gold reserves, which climbed from $4.6 billion at the end of 2023 to $5.8 billion by the end of September. Total assets in gold and foreign currencies reached 16.1 billion Jordanian dinars ($22.7 billion), up from 14.7 billion Jordanian dinars at the beginning of the year.

Moreover, the nation’s total liabilities in foreign currencies decreased significantly, dropping from 1.6 billion Jordanian dinars at the start of the year to 1.3 billion by September.

This positive trend coincides with an economic upturn, as Jordan’s inflation averaged 1.7 percent in the first half of the year, down from 3 percent during the same period last year.

The stability of the Jordanian dinar, pegged to the US dollar, has contributed to this reduction in inflation. Estimates from S&P Global suggest that Jordan will end the year with $4.6 billion in usable reserves.

In September, S&P Global upgraded Jordan’s long-term foreign and local currency rating to “B+” from “BB-.” The agency also reaffirmed its “B” short-term ratings and revised its transfer and convertibility assessment from “BB” to “BB+.”

S&P noted that Jordan’s structural economic improvements are expected to remain resilient, despite regional pressures. The agency indicated that Jordan is well-positioned to leverage international support and has sufficient domestic policy buffers to mitigate impacts from regional conflicts on tourism and the broader economy.

Topics: Jordan Data

Saudi Arabia pushes for global economic cooperation

Updated 23 October 2024

MOHAMMED AL-KINANI

October 23, 2024 14:00

Saudi Arabia pushes for global economic cooperation

Advocates for stronger partnerships to drive sustainable growth

Updated 23 October 2024

MOHAMMED AL-KINANI

October 23, 2024 14:00

JEDDAH: Saudi Arabia has urged for stronger multilateral cooperation to promote sustainable economic growth during the annual meeting of global financial institutions in Washington. This was emphasized by Finance Minister Mohammed Al-Jadaan at the Macro Week event hosted by the Peterson Institute for International Economics on Oct. 22, alongside the 2024 International Monetary Fund and World Bank Group Annual Meetings.

Al-Jadaan is leading a high-level Saudi delegation participating in the meetings, including the fourth gathering of G20 finance ministers and central bank governors from Oct. 21-26.

In a post on his X account, Al-Jadaan shared: “On the sidelines of the 2024 IMF and World Bank annual meetings, I met with the World Bank Group’s chief economist, Indermit Gill, to discuss recent economic developments at both regional and global levels.”

He also engaged with IMF Managing Director Kristalina Georgieva to review the latest global economic trends and explore ways to strengthen collaboration between Saudi Arabia and the IMF.

Notably, in December 2023, the IMF announced that Saudi Arabia will chair the International Monetary and Financial Committee from 2024 to 2027. This committee supports the organization’s board of governors in managing the international monetary and financial system and addressing potential disruptions.

Additionally, Al-Jadaan met with Pakistan’s Finance Minister Muhammad Aurangzeb and other senior officials to discuss enhancing bilateral relations and economic cooperation. In another meeting, he spoke with Feras Milhem, governor of the Palestine Monetary Authority, to address the economic situation in the Palestinian Territories and potential collaborative efforts.

As chair of the IMFC, Al-Jadaan will facilitate discussions on global economic developments, identify policy priorities, and define the IMF's role in addressing these issues through policy advice, capacity building, and financial assistance.

The annual meetings bring together finance ministers, central bank governors, leaders from international organizations, private sector representatives, civil society, and academics to discuss significant global financial and economic developments, sustainable development, financial stability, and strategies for poverty alleviation.

On Tuesday, Al-Jadaan underlined that it was essential that global financial institutions continued to adjust quickly and decisively to solve challenges such as poverty and inequality.

“MDBs (multilateral development banks) need to increase their focus on capacity-building, as well as provide the support and advice needed,” Al-Jadaan said during his speech.

Topics: main

Saudi hotel spending rises 8.5% despite overall drop in POS transactions: SAMA

Updated 23 October 2024

MIGUEL HADCHITY

October 23, 2024 12:42

Saudi hotel spending rises 8.5% despite overall drop in POS transactions: SAMA

POS transactions dropped by 7.5% to SR11.3 billion, continuing a downward trend after a 2.6% increase in early October
Education sector experienced the biggest decline, with spending down 25.3% to SR94.1 million

Updated 23 October 2024

MIGUEL HADCHITY

October 23, 2024 12:42

RIYADH: Hotel spending in Saudi Arabia surged by 8.5 percent during the week of Oct. 13–19, reaching SR293.8 million ($78.2 million), despite an overall decline in point-of-sale transactions, official data showed.

According to figures from the Saudi Central Bank, also known as SAMA, hotels were the only sector to see an increase, while spending across all other sectors fell.

Overall, POS transactions dropped by 7.5 percent to SR11.3 billion, continuing a downward trend after a 2.6 percent increase in early October.

The education sector experienced the biggest decline, with spending down 25.3 percent to SR94.1 million. Telecommunications and public utilities followed with drops of 14.7 percent and 12.4 percent, recording SR103.6 million and SR48.4 million, respectively.

In contrast, spending on construction and building materials recorded the smallest decline, dipping 4.1 percent to SR331.2 million.

Restaurant and cafe expenditures fell 5 percent to SR1.76 billion, while gas station spending dropped 5.7 percent to SR866.4 million.

Looking at the biggest value of transactions this week, the food and beverages sector stepped down from the first spot as the biggest share of the POS, recording an 8.6 percent decrease to SR1.74 billion.

This was followed by miscellaneous goods and services at SR1.3 billion with an 8.3 percent dip.

Together, the top three categories accounted for nearly 45 percent of the week’s total POS value at SR5.1 billion.

Geographically, Riyadh dominated POS transactions, representing 34.7 percent of the total, with spending in the capital reaching SR3.9 billion, recording a decrease of 6.9 percent.

Jeddah followed closely with a 6.8 percent dip to SR1.5 billion, accounting for 13.8 percent of the total, and Dammam came in third at SR587 million, down by 6.3 percent.

Hail saw the biggest decrease in spending, down by 10.3 percent to SR174 million. Abha and Buraidah also experienced declines, with expenditures dipping 8.3 percent and 9.1 percent to SR137 million and SR266.6 million, respectively.

In terms of the number of transactions, Hail recorded the highest decrease for the second week in a row at 7.9 percent, reaching 3,478. Tabouk and Madinah followed with declines at 7.7 percent and 5.3 percent, reaching 4,362 and 8,038 transactions respectively.