Understanding the NIDLP & How It Affects Doing Business in Saudi Arabia
As a U.S. company involved in or venturing into the Saudi Arabian investment sphere, you know how intricate this market is and how complicated Saudi business relations can be. Even with experience, the Kingdom can be complicated to navigate — especially during this transitional phase of self-driven economic transformation through the Vision 2030 initiative.
When you want to succeed in Saudi Arabia, you need a detailed understanding of its culture, business operations and market — including its current goals and objectives. Here’s what you need to know about how the National Industrial Development and Logistics Program impact companies doing business in Saudi Arabia.
What Is the National Industrial Development and Logistics Program in Saudi Arabia?
As one of 13 Vision Realization Programs in the Kingdom’s Vision 2030 plan, the NIDLP is a nationwide strategy to transform Saudi Arabia’s industrial sphere and position the Kingdom as a global leader.
In 2016, Saudi Arabia’s Royal Court and Crown Prince Mohammed bin Salman developed an ambitious, detailed plan to restructure and redevelop its economy. The initiative was called Vision 2030, and it laid out an extensive, specific network of policies, goals and objectives for the Kingdom to reach by the year 2030. Three years later, Vision 2030 informs and outlines all of Saudi Arabia’s business and economic decisions — including the inauguration of the NIDLP in January 2019.
With a focus on the Vision 2030 program’s ultimate diversification goals, NIDLP is tasked with transforming the Kingdom into a global industrial powerhouse and leading hub of logistics. By developing promising growth sectors, this plan’s objective is to maximize local content, enhance the balance of trade and create more Saudi job opportunities.
Four Key Sectors Involved in the National Industrial Development and Logistics Program
The National Industrial Development and Logistics Program is focused on increasing non-oil exports, developing qualitative industries, reducing imports, generating employment opportunities, attracting foreign investments and raising target sector GDP contribution. The plan targets the growth and development of the following four key sectors:
How Does NIDLP Plan to Transform Saudi Industry?
Within the four targeted development sectors, the NIDLP plans to transform the Saudi economy through the design of the following enablers:
- Policies and regulation: To enhance the Kingdom’s competitiveness in the global economy, Saudi Arabia is improving and revising its regulatory environment in all key sectors.
- Finance: By determining current financial gaps in the system of all sectors, the financial enablement aspect of the program is enhancing and implementing new plans for financial development.
- Industrial land: To encourage growth in the industrial sector, the NIDLP supports the development and expansion of industrial lands for energy, mining and materials.
- Special economic zones: To support better business and trade, the Kingdom is developing special zones in outstanding and competitive locations.
- Development and innovation: Saudi Arabia is increasing its investment in technical and industrial innovation to boost productivity and enhance the Kingdom’s competitiveness.
How The Quincy Group Can Help Businesses and Investors in Saudi Arabia
When you’re navigating the Saudi Arabian market and trying to build business relationships, you need to make sure your company’s goals align with and contribute to the Kingdom’s goals. Here at The Quincy Group, we know how to position you for success. With offices in both the United States and Riyadh, we have the extensive inside knowledge, experience and connections to help you develop the long-lasting, mutually beneficial investor relationships you envision. Call 202.461.2245 or contact us today for more information on expanding your Saudi Arabian investments.