SAUDI ARABIAS INDUSTRIAL SECTOR TO PLAY A MAJOR PART IN DRIVING POST-PANDEMIC ECONOMIC RECOVERY

 A new Covid Response Report (CRR) produced by Oxford Business Group (OBG), in partnership with Sherbiny, shines a spotlight on Saudi Arabia’s industrial sector, examining its emerging role as a key engine of growth, in line with the country’s efforts to diversify the economy away from a reliance on oil.

The CRR provides in-depth analysis of the Kingdom’s response to the pandemic in an easy-to-navigate and accessible format, focusing on key data and infographics relating to the country’s socio-economic landscape. 

The report explores efforts under way to boost manufacturing’s contribution to GDP by introducing value-added production to the oil & gas sector in segments such as plastic, as well developing local industrial solutions and equipment. The transition towards Industry 4.0, which was gathering pace even before the arrival of Covid-19, is another focus. The report considers the valuable part that the workplace transformation and adoption of new technologies could play in helping the Kingdom to create private-sector jobs suited to its educated labour market, in a move that would dovetail with the aims of Vision 2030 and support long-term economic growth.

OBG also charts Saudi Arabia’s economic performance before the arrival of Covid-19, which was marked by strong GDP growth and macroeconomic fundamentals relative to the G20. Here, it considers the part that sustained, broad-based investment and a strong government structure played in supporting the Kingdom’s efforts to cushion the impact of the virus on both its citizens and the economy, while positioning it for a swift recovery.

The report provides coverage of the measures that Sherbiny introduced to maintain business activity during the pandemic, which helped the domestic equipment and solutions provider deliver a strong year-to-date performance, despite the challenges it faced. In addition, it tracks the steps the firm is taking to align itself with changing market demand and Vision 2030, which will support both a localisation push under way in oil & gas and manufacturing, and facilitate greater export opportunities.

Majed Sherbiny, Chief Commercial and Operations Officer, Sherbiny, told OBG that the government’s ambition to create a diversified economy is also leading to numerous opportunities for investors, and a bright future awaits for all of those committed to Vision 2030.

“The pandemic has separated the strong and agile from the weak and rigid. The government has demonstrated strong support for the private sector in all aspects, especially small and medium-sized enterprises. Through this support, I believe they have secured the confidence of investors who witnessed unprecedented subsidies to sustain employment and financial stability,” Sherbiny added.

Jana Treeck, OBG’s Managing Director for the Middle East, said that Saudi Arabia looks set to withstand the economic shock of the pandemic better than most regional economies, buoyed by strong anticipated growth in both the oil and non-oil sectors.

“The IMF expects Saudi Arabia to rebound in 2021, with GDP forecast to reach 3.1%,” she said. “Oil is expected to spearhead the recovery. However, industry is not far behind in terms of growth and job creation, which reflects the Kingdom’s commitment to creating a more diversified economy and stronger private sector.”

The CRR on Saudi Arabia forms part of a series of tailored reports which the global research and advisory company is currently producing with its partners, alongside other highly relevant, go-to research tools, including a range of country-specific Covid-19 Economic Impact Assessment articles and interviews.