Post by : Mariam
Al-Faris
Khalid Al-Falih, Saudi Arabia's Minister of Investment, addressed significant transformations in the global industrial sector and supply chains. He pointed out a departure from traditional industrial monopolies towards a novel framework focused on regional clusters, interconnected for efficiency.
According to Al-Falih, this global evolution opens doors for nations like Saudi Arabia to attract investments and elevate their industrial power. He noted the Kingdom's strategic position, abundant resources, and transformative economic reforms as crucial elements contributing to its growing role in the global supply chain.
At the 21st session of the UNIDO General Conference (GC21) held in Riyadh, under the banner of “Global Industry Summit 2025,” Al-Falih emphasized that the conference is timely as worldwide economic shifts influence trade, technology, investments, and sustainability. These fluctuations present nations with various growth opportunities and challenges.
Highlighting the region's vast natural resources, Al-Falih stated that the Middle East possesses nearly half of the world's documented oil reserves and 40% of natural gas reserves. He also mentioned key minerals critical for modern industries: 79% of cobalt, 44% of manganese, and 21% of graphite, essential for technologies like batteries and electric vehicles.
He remarked that the Middle East is transitioning beyond its identity as merely an energy supplier, evolving into a pivotal center for technology investment, advanced manufacturing, and innovation. Currently, despite representing 6% of the global population and 5% of international trade, the region only garners 3% of global investments—a figure it aspires to elevate.
Al-Falih reiterated that economic diversification remains pivotal for Saudi Arabia. The nation, under Saudi Vision 2030, is dedicated to developing new income avenues, fostering innovation, and empowering its youthful population—two-thirds of which is vibrant and technology-savvy.
Elaborating on the Kingdom's strategies, he highlighted plans to innovate the manufacturing industry, expand the mining sector, enhance downstream petrochemical processes, and adopt low-emission energy sources for mining. It is estimated that Saudi Arabia's mineral wealth could be valued at approximately $2.5 trillion.
Al-Falih underscored the Kingdom’s advancements in renewable energy and clean fuel, indicating aspirations to become a leader in blue and green hydrogen in light of its competitive renewable energy projects.
Artificial intelligence is another major focus, with aspirations for Saudi Arabia to be a leader in the field by 2030. The digital economy is anticipated to account for nearly 19% of the nation’s GDP, reflecting its high global rankings in technology development and connectivity.
The minister commended the rapid expansion of Saudi Arabia’s entrepreneurial scene, with venture capital investments soaring 158% to $1.3 billion in the third quarter. Over 2,500 new innovative businesses have been registered, indicating robust international interest in the Kingdom.
He also pointed out the flourishing sectors, including tourism, culture, and hospitality, where projects like AlUla and Diriyah are not only attracting tourists but also creating substantive job opportunities, re-establishing Saudi Arabia as a cultural and economic hub.
Additionally, Al-Falih noted that Saudi Arabia is strengthening partnerships with nations such as Egypt, India, and Pakistan, bolstered by regional headquarters initiatives that have attracted significant global corporations to the Kingdom.
Currently, the country's sovereign wealth fund totals about $1.5 trillion. Since the endorsement of Vision 2030, the GDP has doubled, with non-oil sectors now constituting 56% of the economy and foreign investments surging dramatically.
In conclusion, Al-Falih stressed the importance of responsible and strategic investment in shaping the future. He reaffirmed Saudi Arabia’s commitment to collaboration with international partners, like UNIDO, striving to build a more sustainable future for all.
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