Saudi Arabia's industrial, logistics sectors add $263bn to non-oil GDP in 2024

Arab News

5 days ago

RIYADH: Saudi Arabia's National Industrial Development and Logistics Program contributed SR986 billion ($262.8 billion) to the Kingdom's non-oil gross domestic product in 2024, accounting for 39 percent of the total, according to the program's annual performance report.
This figure marks an increase from SR949 billion in 2023 and underscores NIDLP's central role in advancing the goals of Vision 2030 to diversify the Saudi economy beyond oil.
The report highlighted substantial progress across the program's strategic sectors — industry, mining, energy, and logistics — demonstrating what NIDLP described as a 'qualitative transformation' in the national economy.
The total contribution of non-oil activities to the broader GDP reached 55 percent, with the manufacturing sector alone growing by 4 percent, and both mining and transport/storage sectors expanding by 5 percent.
Saudi Arabia's broader economic performance in 2024 reflected resilience amid oil market fluctuations, with overall GDP growing by 1.3 percent for the year, driven primarily by expansion in non-oil sectors, according to data from the General Authority for Statistics.
Launched in 2019, NIDLP aims to integrate key sectors and leverage local content and the Fourth Industrial Revolution to build a diversified and value-added economic base.
The 2024 report details a range of achievements that indicate continued momentum toward these long-term economic transformation goals.
"The number of executive initiatives under the program reached 284 by the end of 2024, of which 163 have been completed, with a completion rate of 57 percent, confirming the pace of achievement and the program's ability to deliver impact,' the report quoted Minister of Industry and Mineral Resources Bandar Alkhorayef, also chairman of the NIDLP Committee, as saying.
'The total number of employees in NIDLP sectors surpassed 2.43 million, including more than 508,000 new jobs created during the year. Among those, over 81,000 were taken up by Saudi nationals,' he added in the report.
Non-oil exports reached a total value of SR514 billion in 2024, reflecting a 13.2 percent year-on-year increase.
Of this, SR217 billion came from non-oil goods exports, which rose by 4 percent.
Re-exports surged 42 percent to reach SR90 billion, while services exports climbed 14 percent to SR207 billion.
Chemicals topped the export categories with SR78.5 billion, followed by electrical equipment at SR42.9 billion, metals and metal products at SR23.3 billion, and food and beverage products at SR10.5 billion.
The labor market also saw strong gains. Total employment across NIDLP sectors reached 2.433 million workers in 2024.
The program created more than 508,000 new jobs last year, including over 81,000 roles for Saudi nationals — 42,000 for men and 39,000 for women.
Key employment drivers included manufacturing, mining and quarrying, electricity and gas, and logistics.
Non-government investments in program sectors reached SR665 billion. The Saudi Industrial Development Fund's cumulative loan approvals totaled SR198 billion, while export credit facilities issued by the Saudi Export-Import Bank stood at SR69.14 billion.
Industrial activity expanded significantly, with 12,589 industrial establishments recorded by year-end.
The number of ready-built factories reached 1,511. Non-government investments in industrial cities and special zones totaled a cumulative SR1.41 trillion.
The local defense industry also advanced, with cumulative sales by domestic companies hitting SR34.32 billion.
The national industrial strategy continues to push for the localization of supply chains in sectors like medical supplies, automotive, energy-related products, and petrochemicals.
In renewable energy, the program recorded significant progress. Total renewable energy capacity initiated in 2024 reached 20 gigawatts, including 3.7 GW of new solar project agreements and 3.6 GW of new commercial operations.
The lowest recorded wind energy cost globally was also achieved, at 5.87 halalas per kilowatt-hour. These efforts contributed to an annual carbon emissions reduction of approximately 1.7 million tonnes.
In mining, exploration spending reached SR228 per sq. km. The number of mining sites offered for competitive bidding increased 380 percent from the previous year.
The sector aims to contribute SR176 billion to GDP and create 219,000 jobs by 2030. Saudi Arabia was ranked second globally for mining license environment quality, the report stated.
Logistics witnessed similar advances. A total of 1,056 logistics licenses were issued, while re-export logistics centers expanded to 23 in 2024, up from just two in 2019.
Port utilization rose to 64 percent, compared to a baseline of 50.2 percent. Customs clearance time was reduced to just two hours, and container throughput reached 7.5 million units.
Key performance indicators exceeded several targets. Military industrialization localization reached 19.35 percent, surpassing the 12.5 percent goal and up from a 7.7 percent baseline.
Local content in non-oil sectors reached SR1.231 trillion, above the target of SR1.11 trillion. The number of final licenses issued for promising industries hit 3,107, compared to a target of 845 and a baseline of 169.
Cumulative exports of promising industries reached SR135.6 billion, exceeding the target of SR98.7 billion.
The number of re-export-linked logistics centers also surpassed targets, with 23 centers established versus a target of 16.
At the highest level, NIDLP contributes to three primary pillars of Vision 2030: fostering a vibrant society, creating a thriving economy, and building an ambitious nation.
One of the six first-tier Vision 2030 objectives that the program directly supports is the development and diversification of the national economy, particularly through job creation and enhanced government performance to promote social responsibility.
NIDLP also addresses second-tier goals by strengthening private sector participation and maximizing value across key economic sectors.
The program seeks to improve the competitiveness of Saudi Arabia's energy sector, enhance local content in oil and gas industries, and promote the development of renewable energy sources.
Additionally, the program supports the creation of specialized economic zones and the rehabilitation of industrial cities to attract investment and facilitate growth.
Another key strategic focus of the program is the expansion of non-oil sectors, including mining and downstream industries.
NIDLP targets the localization of high-potential sectors such as advanced manufacturing and defense industries, while increasing local content across non-oil value chains.
These initiatives are designed to unlock the full economic potential of the Kingdom's natural resources and industrial capabilities.
As part of its logistics mandate, the program also works to establish and improve the performance of logistics hubs, while enhancing domestic, regional, and international connectivity across trade and transport networks.
These efforts are central to NIDLP's ambition to solidify Saudi Arabia's position as a global logistics hub, reinforcing the Kingdom's strategic role in global supply chains.
Overall, the program encompasses 96 detailed targets at the third level of Vision 2030 planning, 12 of which are directly linked to NIDLP initiatives.
These targets serve as the operational backbone for achieving the broader national goals of economic diversification and industrial competitiveness.