INDUSTRIAL 

CHARTING THE RISE OF SAUDI’S NON-OIL ECONOMY

The National Industrial Development and Logistics Program (NIDLP) has emerged as one of the most powerful engines of Saudi Arabia’s Vision 2030 transformation, driving both diversification and industrial scale-up at an unprecedented pace.

Launched in 2019, the programme integrates four strategic sectors – energy, mining, industry, and logistics – while embedding local content and Fourth Industrial Revolution technologies to expand the kingdom’s economic base and boost the non-oil sector. 

“By the end of 2024, the programme had encompassed 284 initiatives, with 163 completed, representing 57% of the total, while the remaining initiatives are on track to meet their targets,” stated Bandar bin Ibrahim Alkhorayef, minister of industry and mineral resources and NIDLP chairman, in the 2024 annual report. “NIDLP has played a pivotal role in enabling implementing entities to advance their plans and deliver tangible results on the ground.” 

Through initiatives such as Made in Saudi, which enhances local content in oil and non-oil sectors, the programme is paving the way for Saudi Arabia's Fourth Industrial Revolution to harness new technologies to improve society. 

In 2024, NIDLP-linked activities contributed SAR 986 billion to the non-oil GDP, or 39% of the total, up from SAR 949 billion the year before. Non-oil activities now account for 55% of GDP, underscoring the shift away from hydrocarbon dependence. Manufacturing output grew 4%, while mining, transportation, and storage collectively rose 5%. Non-oil exports reached SAR 514 billion, with services and re-exports posting double-digit gains, and chemical industries, metals, food and beverages, and electrical equipment leading the product mix. 

Job creation has been equally transformative. NIDLP sectors employed 2.43 million people, adding more than 508,000 jobs in 2024 alone – 81,000 of them for Saudis, with near gender parity. Female Saudi workers rose by 39,000 in the sectors, with Saudi men rising by 42,000. Industrial momentum is visible in the 1,511 new factories completed, bringing the total to 12,589 facilities, and SAR 1.41 trillion in cumulative private investment in industrial cities and special zones.

Capital flows remain strong. Non-governmental investments in NIDLP sectors totalled SAR 665 billion in 2024. The Saudi Industrial Development Fund has approved SAR 198 billion in cumulative loans, while the Saudi EXIM Bank has extended SAR 69.14 billion in export credit. Defence localisation is gaining ground, with military sales to local companies reaching SAR 34.32 billion, and supply chains expanding in strategic industries from medical equipment to automotive components. 

RENEWABLES ON THE RISE

Projects totalling 20 gigawatts (GW) in capacity were launched in 2024, with record-low wind energy tariffs at SAR 0.0587 per kilowatt-hour (kWh) and 3.6 GW of solar coming online – cutting carbon emissions by an estimated 1.7 million tonnes annually. 

The goal is to increase the share of renewables in the domestic energy mix to nearly 50% by 2030, complemented by high-effciency natural gas. This includes building national capabilities to position the kingdom as a global leader in renewable energy and strengthening legislative and regulatory frameworks to support complementary energy sectors for maximum economic return, the annual report noted. 

The Ministry of Energy also launched the Geographic Survey Project for Renewable Energy sites in the kingdom. The contracts for the project were awarded to Saudi companies to install 1,200 stations for measuring solar and wind energy across all regions of the country. The project reaffrms the kingdom’s commitment to achieve its ambitious targets for producing and exporting renewable energy. 

“The project is the first of its kind globally in terms of geographical coverage, data completeness, and continuity, with high accuracy and fundability. The project will cover various locations across the kingdom, surveying over 80,000 square kilometres (sq km),” according to the annual report. 

Mining is ramping up too, with exploration spending at SAR 228 per sq km, a 380% jump in sites available for tender, and a clear path to SAR 176 billion in GDP contribution as well as 219,000 jobs by 2030. The kingdom now ranks second globally for mining license competitiveness, the NIDLP report stated.

Logistics capabilities have expanded sharply, too. Re-export centres have grown from just two in 2019 to 23 in 2024, port utilisation has improved to 64% (up from 50.2%), and customs clearance has been reduced to two hours – helping to position Saudi Arabia as a regional logistics hub.

NIDLP is consistently outperforming on its key performance indicators. In several cases, such as military industries localisation and local content in non-oil sectors, targets have been surpassed ahead of schedule. While some metrics, like port utilisation, have fallen marginally short of targets, the overall trajectory is one of accelerated execution and structural transformation.