The crown prince recently launched the National Industrial Strategy, which aims to boost industrial growth and increase the number of factories to around 36,000 by 2035. "We have all the capabilities to achieve a competitive and sustainable industrial economy, including ambitious young talent, a distinguished geographical location, rich natural resources and leading national industrial enterprises," the crown prince said.
The Global Supply Chain Resilience Initiative (GSCRI) is a strategy of continuous improvement of the investment environment coupled with attractive opportunities and a unique incentive budget, including $2.66 billion in financial and non-financial incentives. The GSCRI complements Saudi Vision 2030's goal of achieving economic growth and diversity.
One of the initiatives stemming from the Kingdom's National Investment Strategy, the GSCRI aims to develop a unified strategy to attract strategic supply chains to Saudi Arabia and increase the Kingdom's market share in sectors where it has particular competitive and strategic advantages. In addition to supporting Saudi Arabia's national development, the Global Supply Chain Resilience Initiative will help strengthen regional and global supply chains while giving investors a competitive advantage. In its launch phase, it aims to attract industrial and service investments worth 40 billion rials in global supply chains to the Kingdom. The GSCRI is part of Saudi Arabia's National Investment Strategy, which was launched in October last year.
Saudi Arabia's economy is evolving and opening up at an unprecedented pace, and its radical transformation is unlocking ground-breaking commercial opportunities for pioneering investors while attracting more visitors, investors and businesses to the Kingdom. This has accelerated development in sectors such as tourism, arts and culture, renewable energy and entertainment that make Saudi Arabia a global investment powerhouse and one of the world's most sought-after places to invest, even in a highly challenging global environment.
The latest supply chain decision contains the establishment of a number of special economic zones, said a statement on SPA that also referred to ongoing "legislative and procedural" reforms. "The Global Supply Chain Resilience Initiative will leverage the Kingdom's resources, core services and location to offer greater resilience to economies and businesses in Europe, the Americas and Asia, while further enhancing Saudi Arabia's position in the global economy," the statement added.
The government wants the initiative to make Saudi Arabia the ideal investment environment for investors in supply chains through several steps. Among these steps are the inventory and development of investment opportunities and their presentation to investors, and the establishment of a number of special economic zones through which an attractive environment for investors can be created, in addition to attracting regional headquarters of international companies.
According to IMF indicators, the gross domestic product of the world's largest oil producer will exceed the $1 trillion mark for the first time in the country's history, i.e. $1.04 trillion by the end of this year.
Saudi Arabia will benefit from the large oil revenues it earned during the months of war in Eastern Europe, which helped it to inject part of them into infrastructure projects and boost industry and exports, as well as to advance the policy of job liquidation, which boosts the local labour market.
In addition to building strong relationships with local and international markets, the GSCRI will enable investors to take full advantage of the Kingdom's natural resource reserves, as well as its untapped potential. The initiative is in line with Saudi Vision 2030's goals to top the list of 15 global economies by 2030, leaving a prosperous legacy for generations to come. Last year, Saudi Arabia managed to achieve a record leap in attracting foreign investment, which analysts say gives it strong momentum to raise more revenue by implementing economic transformation plans.