Latest news with #NationalIndustrialDevelopmentandLogisticsProgram
Time of India
2 days ago
- Business
- Time of India
GCC GDP 2024: Real and nominal figures differ, but both show non-oil sectors make up over 70%
In 2024, non-oil sectors made up 77.9% of nominal GDP and 70.6% of real GDP across the GCC/ Image: FIle The Gulf Cooperation Council (GCC) economies showed steady growth in 2024, with rising contributions from non-oil sectors offsetting a decline in oil output. Real GDP rose 3.3% in the fourth quarter, backed by strong performance in manufacturing, trade, and construction. This marks a continuing shift away from oil dependence, reinforced by national reform programs and increased investment in non-hydrocarbon industries. Real GDP – Growth despite oil sector contraction In constant price terms, or real GDP, the total output of the six GCC countries rose by 3.3% in Q4 2024, reaching USD 456.3 billion, compared to USD 442.3 billion in Q4 2023. Quarter-on-quarter, the region's economy expanded by 1%, rising from USD 452.2 billion in Q3 2024. The bulk of this real GDP came from non-oil sectors, which made up 70.6% of total real GDP in Q4. In contrast, oil-related activities contributed the remaining 29.4%. Looking at the year as a whole, the overall real GDP across the GCC rose by 2.4%. However, this masks a notable divergence between sectors: Non-oil GDP increased by 3.7%, driven by robust growth in industry and services. Oil GDP declined by 0.9%, primarily due to voluntary production cuts under the OPEC+ framework. Country-wise, Qatar recorded the highest annual increase in real GDP at 4.5%, followed by the UAE at 3.6%, and Saudi Arabia at 2.8%. In Saudi Arabia, non-oil activities grew by 4.6%, while oil activities contracted by 4.5%, indicating a substantial shift in the country's economic composition. Nominal GDP – Growth tempered by market prices In nominal terms (i.e., unadjusted for inflation), the GCC's GDP rose by 1.5% year-on-year, reaching USD 587.8 billion by the end of Q4 2024, up from USD 579 billion in Q4 2023. Unlike real GDP, nominal GDP reflects current market prices, and can be influenced by inflation or deflation. While the overall increase was modest, the non-oil sector's contribution to nominal GDP was higher at 77.9%, showing a broader diversification trend in monetary terms. The remaining 22.1% came from oil activities, a significantly lower share compared to their contribution in real terms. This disparity suggests that while oil remains a large physical output driver, price pressures and production curbs have diminished its monetary weight in the economy. Sector contributions – Manufacturing and trade lead A closer breakdown of nominal GDP reveals the growing role of diverse non-oil industries: Manufacturing: 12.5% Wholesale and Retail Trade: 9.9% Construction: 8.3% Public Administration and Defence: 7.5% Finance and Insurance: 7% Real Estate Activities: 5.7% Other Non-Oil Activities: 27% These sectors have underpinned the GCC's non-oil expansion, with each contributing steadily to national and regional outputs. In Saudi Arabia specifically, the National Industrial Development and Logistics Program (NIDLP) contributed SAR 986 billion (USD 262.8 billion) to non-oil GDP, accounting for 39% of Saudi Arabia's non-oil economic output. Non-oil activities now represent 55% of Saudi Arabia's total GDP. This growth has been supported by government spending, which increased by 2.6% in Saudi Arabia during 2024, enabling momentum in infrastructure, services, and industry. Reform agendas and future outlook The GCC's shift from oil-dependency to broader economic resilience is no longer just policy ambition — it is increasingly reflected in macroeconomic data. Growth in 2024 was driven by sectors aligned with national strategic reforms: Saudi Vision 2030 UAE Economic Vision Qatar National Vision 2030 Oman Vision 2040 These plans emphasize tourism, logistics, manufacturing, finance, and digital infrastructure, backed by regulatory changes and significant public-private investment. The year's data confirms that these structural transformations are not only underway but are starting to deliver tangible economic diversification. Despite setbacks from oil market volatility, the region is expanding in real output, broadening its industrial base, and recalibrating its sources of long-term growth. Real vs. nominal GDP – Simplified To help readers understand the two metrics used: Real GDP adjusts for inflation, showing actual physical output growth or contraction. It's more useful for comparing economic performance over time. Nominal GDP is the economy's total value of goods and services using current prices, reflecting the monetary size of the economy but can be skewed by price changes. In the GCC's case, real GDP growth (3.3%) outpaced nominal GDP growth (1.5%), which suggests that while the region is producing more goods and services, price effects (like lower oil prices) dampened the apparent value increase.
Saudi Gazette
22-07-2025
- Politics
- Saudi Gazette
Saudi Cabinet reaffirms Syria support, endorses Gaza ceasefire call
Saudi Gazette report JEDDAH — The Custodian of the Two Holy Mosques King Salman chaired the Cabinet session held Tuesday in Jeddah, where key regional and international developments were discussed, including Saudi Arabia's continued support for Syria and the situation in Gaza. The Cabinet reviewed a message received by the King from Eswatini's King Mswati III, as well as a phone call between Crown Prince Mohammed bin Salman and Syrian President Ahmad Al-Shara, during which Saudi Arabia reiterated its firm support for Syria, condemned Israeli aggression on Syrian territory, and rejected external interference in the country's internal affairs. The Cabinet underscored the importance of the joint statement issued by Saudi Arabia and several Arab nations, reaffirming commitment to Syria's unity, stability, and reconstruction. Minister of Media Salman Al-Dosary stated that the Cabinet also reviewed the Kingdom's humanitarian efforts in Syria through the King Salman Humanitarian Aid and Relief Center, highlighting Saudi Arabia's ongoing support for crisis-affected nations. The Cabinet welcomed the recent statement by 26 international partners calling for an immediate end to the war in Gaza, the lifting of all restrictions on humanitarian aid, and its safe delivery to the urged the international community to take swift, practical steps in response to Israel's continued obstruction, which hinders regional and global peace Arabia also hailed the signing of a declaration of principles between the Democratic Republic of Congo and the Congo River Alliance, expressing hope that the agreement would help improve humanitarian and economic conditions and promote international peace and a step toward energy leadership, the Cabinet welcomed the signing of agreements and MoUs aimed at establishing an integrated system for exporting renewable energy and green hydrogen from Saudi Arabia to Europe, reinforcing the Kingdom's role in international logistics and the India-Middle East-Europe Economic Cabinet commended the achievements of the National Industrial Development and Logistics Program (NIDLP), including its contribution to non-oil GDP, job creation, and expansion of local manufacturing success of the Saudi conjoined twins separation program was also praised, with the Cabinet highlighting its global humanitarian impact, having cared for 150 twins from 27 countries and performed 65 successful separation the field of intellectual property, the Cabinet noted the election of Saudi Arabia to lead international committees within the World Intellectual Property Organization (WIPO), affirming the Kingdom's global influence and Cabinet also welcomed the hosting of key international events, including the 8th Global Health Exhibition, the Global Symposium for Regulators, and the 2027 International Conference of Internal Auditors, further cementing Saudi Arabia's role as a hub for governance, oversight, and professional the Cabinet assigned Jeddah Municipality to oversee and protect the coastal stretch from Al-Sathah in Rabigh to Al-Kadof in Al-Qunfudhah.
Saudi Gazette
19-07-2025
- Business
- Saudi Gazette
NIDLP sectors contribute 39% to non-oil GDP in 2024
Saudi Gazette report RIYADH — The National Industrial Development and Logistics Program (NIDLP) contributed 39% to Saudi Arabia's non-oil GDP in 2024, amounting to SR986 billion, up from SR949 billion in 2023, according to the program's annual report. Non-oil exports surged to SR514 billion last year, marking a 13.2% increase from 2023. This included SR217 billion in non-oil commodity exports (up 4%), SR91 billion in re-exports (up 42%), and SR207 billion in service exports (up 14%). The top-performing export sectors included chemicals (SR78.5 billion), metals and products (SR23.3 billion), food and beverages (SR10.5 billion), and electrical equipment (SR42.9 billion). The labor market showed strong momentum, with total employment across NIDLP sectors reaching 2.433 million workers in 2024. The report highlighted the creation of over 508,000 new jobs during the year, including 81,000 jobs for Saudis, 42,000 men and 39,000 employment contributors were the manufacturing, mining and quarrying, electricity and gas, and transport and storage sector investments across NIDLP sectors reached SR665 billion in 2024. The Saudi Industrial Development Fund approved SR198 billion in cumulative loans, while the Saudi EXIM Bank provided SR69.14 billion in credit total number of industrial establishments reached 12,589, with 1,511 ready-built factories. Cumulative private investments in industrial cities and special economic zones hit SR1.4 defense companies recorded SR34.32 billion in cumulative military sales. The national industrial strategy continues to focus on localizing value chains in future-facing industries, including medical supplies, automotive production, and petrochemical-related oversaw the launch of renewable energy projects totaling 20 GW in capacity, including 3.7 GW in new solar agreements and 3.6 GW of newly operational Kingdom recorded the lowest global wind energy cost at 5.87 halalas/kWh. These projects reduced carbon emissions by approximately 1.7 million tons exploration spending reached SR228 per square kilometer, with a 380% increase in mining sites offered for competitive mining sector aims to contribute SR176 billion to GDP by 2030 and create 219,000 jobs. Saudi Arabia was ranked the second-best globally for mining licensing logistics sector continued to advance, issuing 1,056 licenses. The number of export logistics centers rose to 23, up from just 2 in utilization improved to 64%, up from a baseline of 50.2%, while customs clearance time dropped to just two hours. Port container throughput reached 7.5 million program surpassed several Vision 2030 benchmarks. Military industry localization reached 19.35%, exceeding the 12.5% target and up from a 7.7% baseline. Local content in non-oil sectors reached SR1.23 trillion, ahead of the SR1.11 trillion for emerging industries totaled 3,107—far above the 845-license target and 169-license baseline. Exports from these sectors hit SR135.6 billion cumulatively, exceeding the SR98.7 billion target and an SR18.6 billion number of re-export logistics centers reached 23, outpacing the 16-center the end of 2024, the NIDLP portfolio included 284 initiatives, with 163 completed, representing a 57% execution rate.
Time of India
15-07-2025
- Business
- Time of India
Saudi Arabia Industrial Jobs: Saudi Arabia creates 4,700 jobs through industrial expansion, ETHRWorldEMEA
Advt By , Agencies Join the community of 2M+ industry professionals. Subscribe to Newsletter to get latest insights & analysis in your inbox. Get updates on your preferred social platform Follow us for the latest news, insider access to events and more. Saudi Arabia's industrial sector continues to gain momentum, with more than 4,700 jobs created in May 2025 alone, driven by the issuance of 155 new industrial licenses and the launch of operations at 122 factories. According to the Ministry of Industry and Mineral Resources , the newly licensed projects are expected to create 2,450 job opportunities, while factories that began production last month generated 2,329 combined investments tied to these developments exceeded SR4.18 billion—SR3.25 billion for new licenses and SR930 million for operational factories, marking a strong month for industrial job generation and capital figures reflect the impact of Saudi Arabia's broader push to expand its industrial base under the National Industrial Development and Logistics Program (NIDLP). The initiative targets growth in four strategic sectors—industry, mining, energy, and logistics, to position the Kingdom as a global industrial and logistics such as the 'Made in Saudi' campaign and a suite of government-backed incentives continue to attract both local and foreign industrial investments , reinforcing economic diversification and job creation goals under Vision 2030. As more factories transition from licensing to production phases, the Kingdom's workforce stands to benefit from a steady pipeline of employment opportunities across regions.
Saudi Gazette
14-07-2025
- Business
- Saudi Gazette
Saudi Arabia issues 155 new industrial licenses in May
Saudi Gazette report RIYADH — Saudi Arabia issued 155 new industrial licenses in May 2025, while 122 factories began actual production during the same month, according to the latest monthly report by the National Industrial and Mining Information Center under the Ministry of Industry and Mineral Resources. The report, which tracks key monthly indicators in the sector, revealed that the total investment tied to the new licenses exceeded SR3.25 billion. These upcoming industrial projects are expected to generate 2,450 job opportunities across various regions of the Kingdom. Meanwhile, the value of investments in factories that commenced production in May reached SR930 million, with 2,329 new jobs created. The data underscores the continued expansion of Saudi Arabia's industrial base and the accelerating pace of factories moving into operational phases. The Kingdom has rolled out several initiatives to boost the industrial sector, notably the National Industrial Development and Logistics Program (NIDLP), aimed at transforming Saudi Arabia into a global industrial powerhouse and logistics hub by focusing on four core sectors: industry, mining, energy, and logistics. Saudi Arabia has also launched the 'Made in Saudi' initiative to encourage both local and international consumers to buy domestically produced goods and to enhance awareness of the high quality of national products. Additionally, the government is promoting industrial investment by offering a range of incentives and facilitations to both local and foreign investors, with the goal of increasing capital inflows and diversifying the industrial landscape.
