RIYADH: More than 1,400 Saudi manufacturing companies are now part of the country’s growing network of companies driving Saudi exports forward as the Kingdom taps into more resources to develop and grow local industry, Faisal Al-Maghlooth said, general manager of the Made in Saudi program at Saudi Made.
“We are proud to have more than 1,400 companies that represent the identity of the national industry, improve the quality of the local product and make it a first choice for the consumer in all markets,” Al-Maghlooth told Arab News on the first anniversary of the Made in Saudi program.
He proudly highlighted some important developments and factors that have helped shape the Saudi industry. “In the year since the launch of Made in Saudi Arabia, there have been many achievements of which we are proud.
“Made in Saudi” (programme) aims to market domestic goods and services to become the preferred option locally and globally.
There are more than 30 strategic partners, and more partners are being added,” Al-Maghlooth informed.
So far, more than 6,500 products have been registered by Saudi companies and 147 companies have launched their products in the market under the slogan “Made in Saudi Arabia” in various fields of food, chemicals, iron , pharmaceuticals, paints and others.
Asked about the contributions of “Made in Saudi Arabia” at the local economic level, Al-Maghlooth replied that there were many. “Increase domestic consumption of domestic goods and services, increase the share of domestic products, especially those with higher local content, in the Saudi market as well as in our exports, increase Saudi non-oil exports to markets in export priorities and enhance the attractiveness of the Saudi industrial sector for local and foreign investment,” he noted.
Benefit “Made in Saudi Arabia”
Al-Maghlooth highlighted some of the benefits of joining the program. “Many benefits have been achieved by companies that have joined, the most important of which is the use of the Made in Saudi Arabia logo on the company’s registered products, which helps to strengthen its institutional and commercial presence with companies. members and products registered under the same logo,” he said.
Moreover, these companies have benefited from all the messages and marketing campaigns launched by the Saudi Export Development Authority under the slogan “Made in Saudi Arabia” through the social networking sites, facilitating the communication of the members with all the government agencies, exchange of experience in specialized fields, training in developing local content, entering global and export markets, using the logo on products that meet recognized national content and quality standards .
Al-Maghlooth stressed the importance of the Saudi private sector in the program. “It is important to clarify that the ‘Made in Saudi’ (programme) aims, as I mentioned earlier, to market domestic goods and services to become the preferred option locally and globally, and this can only be achieved in close and vital cooperation with the private sector, as well as the public sector,” he said.
One of the objectives that the program is working on is to develop the contribution of the private sector to the national economy, even to release the capacities of promising non-oil sectors, on which Crown Prince Mohammed bin Salman always focuses when he speaks. of the Saudi economy, according to Al-Maghlooth.
As for the eligibility for registration of products in the program, it revolves around meeting the value-added requirements, which means that the percentage of local materials included in the final product is not less than 40%. .
This program will also enable Saudi men and women to join the rapidly growing industry workforce and further strengthen medium, small and micro-enterprises.
Diversify the economy
This development comes at a time when Saudi Arabia has made steady strides to diversify the economy and reduce its dependence on oil as its main source of income.
All available indicators and statistics show that the Kingdom is on the right track to increase the share of non-oil exports in general.
Although oil exports still account for the lion’s share of total exports (over 70%), the private sector, with government support, has managed to open new markets around the world for non-oil products.
The push to boost non-oil exports was also seen as part of the ambitious Vision 2030 program that is supposed to shape the Saudi economy.
According to the Saudi General Authority of Statistics, GASTAT, Saudi non-oil exports to the rest of the world in 2021 amounted to $61.7 billion compared to $45.1 billion in 2020, an increase of 89.52 %.
Total non-oil Saudi exports in 2019 amounted to $50 billion, according to GASTAT data.
In the fourth quarter of 2021, non-oil exports jumped to $12.6 billion from $12.2 billion in the same quarter of 2020, an increase of 14.13%.
China remained the largest recipient of non-oil Saudi products, as evidenced by official statistics.
In the fourth quarter of 2021, Saudi non-oil exports to China amounted to SR55.3 billion ($14.7 billion), or 17.3% of total exports.
India and Japan followed with SR34 billion and SR33.3 billion respectively.
South Korea, United Arab Emirates, United States, Egypt, Singapore, Taiwan and Bahrain were the other countries in the top 10 destinations. Saudi Arabia’s exports to these 10 countries amounted to SR 225.4 billion, or 70.4% of total exports.
Data compiled by Arab News also showed that Saudi Arabia’s non-oil exports helped to reduce some of the negative impact of volatility in the Kingdom’s oil export revenues.
“The volatility of non-oil export earnings on an annual basis was relatively lower than that of oil exports,” according to recent data from GASTAT.
Diversifying the Saudi economy, including increasing exports, is central to Saudi Vision 2030.
Vision 2030 aims to increase non-oil exports from 16% to 50% of non-oil gross domestic product by 2030.
The Kingdom seemed very determined to open new markets for its non-oil products regardless of the number of years to achieve this goal.
The purpose of these studies is to help policymakers in the Kingdom develop a modern and effective approach to streamlining the Saudi economy with the aim of enabling the non-oil sector to increase its exports to other countries around the world.
Based on the promising data of recent years, Saudi Arabia will most likely increase its non-oil exports and even focus on other products than chemicals and plastics.