Transcript NIS Template

Implementation of the NIS:
Partnership is the Path Forward
28 December 2009
National Industrial Strategy
‫االستراتيجية الوطنية للصناعة‬
Oil will continue to be the main root for industrial development in the
Kingdom of Saudi Arabia
More Diversified
• Engineering plastics
• Bulk specialty
chemicals
• Plastics conversion
Diversified
Energy Intensive
• Desalination
• Electricity
• Petrochemical
Derivatives
Directly Related to Oil
• Refining
• Basic Petrochemicals
and Plastics
• Beginning to create
industries
• KSA is now well
established
• Traditional Industries
Conventional Natural Resources
(Oil & Gas)
Oil has provided KSA with the foundation to become a globally competitive
economy; The Kingdom needs to keep moving in the right direction for this
transformation to become reality
2
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
KSA has made strides in industrialization, but key “pieces” are still
missing for globally competitive industries to take off
KSA Industrial Environment
•
Sophisticated, •
but geared to
oil & chemicals
rather than
SMEs and
start-ups
Saudi Arabia is the
largest economy in
the MENA region
and the 23rd largest
in the world(1)
•
Investments

underway at all
levels, but
structural
barriers still
significant
•
Insufficient
progress has
been made to
create a
sustainable
ecosystem
According to World
Bank’s “Doing
Business” Report,
Saudi Arabia is
ranked the 13th most
competitive country
in the world, up from
67th in 2004
Finance &
Regulations
Human
Capital
Industrial and
Economic Cities
RCJYR
Enablers
•
Industry
(1)- Based on total GDP, World Bank 2008
With some
exceptions,
diversification
efforts have
not yet
gathered pace

However, In the
same report, KSA is
ranked 61st in
“getting credit” and
73rd in “employing
workers”
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
The Kingdom is bestowed with natural wealth, but additional efforts are
needed for it to become a competitive player in the global economy
KSA has a large young population that will be entering the job market in the near future
A paradigm shift is required to address the coming challenges and
move towards a path of knowledge based industries
Industry
Enablers
Human Capital
Finance &
Regulations
Cluster and SME
development
programs along with
incentives for new
industry sectors
should continue to
be pursued in order
to expand the
private industrial
base
Robust innovation
and infrastructure
policies must be
expanded in order to
ensure effective
expansion of
industry and make
them more
competitive
Effective HR
programs should
continue to be
implemented in
order to increase
Suadization rates in
the Private Sector
and ensure Saudi
skills match industry
demand
Sound business
regulations should
continue to be
improved to
encourage
diversified industries
to prosper and
compete effectively
in the global
marketplace
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
The Kingdom can begin to fill in the missing pieces with a robust
nation-wide strategy
KSA Industrial Environment
Finance &
Regulations
Human
Capital
Business
Friendly
Regulatory
Environment
Finance
Incentives for
diversified
industries
World Class
Universities
and
Vocational
Programs
Culture of
Innovation
Industrial cities
and RCJYR
Enablers
Industry
(1)- Based on total GDP, World Bank 2008
Diversified
Industries
Robust
Infrastructure
Economic Cities
Established
SMEs
In harnessing its
current comparative
advantages and
leveraging the
existing “pieces”,
KSA is well
positioned to branch
off into more
diversified and
knowledge based
industries that will
enable the transition
from acquired wealth
to sustainable wealth
National Industrial Strategy
‫االستراتيجية الوطنية للصناعة‬
“ Industry is our strategic choice to
diversify our economy ”
INDUSTRY 2020
6
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
The National Industrial Strategy (NIS) is a vehicle to diversify KSA’s
economy through industry
National Industrial Strategy
A globally competitive industry , based on innovation and acting as a
major tool in transforming national resources into sustainable wealth
Increase contribution of industrial sector to the GDP to 20% by 2020 from the current 11%
MVA
High-Tech
• Triple the
industrial base,
measured in
Manufacturing
Value Add (MVA)
• Mid to high-tech
content to reach
60%
Industrial Exports
Saudi Workforce
• Industrial
products to
amount to 35% of
total exports
• Increasing the
number of Saudi
industrial
workers by 4 ~ 5
folds
• Approved by the Supreme Economic Council
• Approved by the Shura Council
The NIS was Endorsed by the Council of Ministers on
February 2nd, 2009
7
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
The NIS is a comprehensive strategy which covers various aspects of
reform, accordingly it has many components….
Components of NIS
Industry Focused
Enablers and Drivers
• It is helpful to think of the various
components as building blocks
towards common objectives
• Business
Environment
• Industrial
Clusters
– Regulations and policies
which will encourage
growth and participation
within targeted industries
– Identify knowledge
based industrial
clusters
GDP
Employment | Technology | Exports
• Innovation
• New Verticals
– Provide platforms to
launch and drive
knowledge based
industries
– Identify new
industrial sectors
for KSA
Industry
clusters
New
Verticals
• Human Capital
• Small-toMedium
Enterprises
– Provide the skilled labour
employed by knowledge
based industries
– Encourage
entrepreneurial
activities and
provide support
for target
industries
Innovation
Human Capital
Infrastructure
Regulatory
Requirements
• Infrastructure
– Policy for industrial
infrastructure which will
be necessary to enable
the success of target
industries
Governance
– To guide and ensure consistency for the program
88
SMEs
Private and Confidential
Governance
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
Business Regulations – Implementation Plan Summary
Program
Description
5 Year Budget
KPIs
• Review all legislation related to industrial
sector and policy recommendations
• Improving regulations and policy to promote
competitions, Saudi industry abroad, anti-trust
laws, and review entire body of law
96,000,000 SAR
1. Industrial
Legislation
Package Program
• Present a package of financial and non
financial incentives for industrial investment
• Focuses on new,' policy management
procedures and processes.
453,000,000 SAR
• Initiative to attract global investments in Saudi
Arabia by targeting international companies
working in areas which give priority to
industrial complexes sponsored by the
strategy
• Rationalization of incentives to promote foreign
direct investment,
800,000,000 SAR
• Contract
enforcement ranking
• Number of
collateralized loans
• Number of new hires
and fires by sector
• Maintenance and
improvement in
Doing Business
ranking
• Total non-oil FDI
inflows and
• Stock of non-oil FDI
• Saudi non oil imports
+ non-oil exports
within GCC
• Saudi total non oil
imports + non-oil
exports to/from world
2. Procedures to
Align Incentives
and Support
Industrial
Investment
Program
3. Promotion of
Foreign Direct
Investment
Total 5 Year Budget
9
Private and Confidential
1.349 Billion SAR
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
Business Regulations- High Level Timeline of Implementation Plan
Activity
Capacity Building
Training
FDI Incentives management and Compulsion
Study Tours
Strengthened Framework and Tools
Review of Legislation and Regulations
Amending Legislation and Regulations
Institutions and Governance Arrangement
Agree Institutional Structure and Responsibilities
Establish Institutions
Develop Systems
Local Supply Chain Development
Needs Assessment for Local Supply Chain Upgrading
KSA Staff Training
Implementing Technical Support Programmes in Supply Chains
Communications
Message Development
Communications Implementation
10
Private and Confidential
Year 1
Year 2
Year 3
Year 4
Year 5
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
Industrial Clusters – Implementation Plan Summary
Program
1. Industrial
Clusters
Complexes
Program
2. Technology
Clusters
Program
3. Advanced
Technologies
Program
4. Industrial
Promotion
Program
Description
Initiate the creation of cluster
committees that will collaboratively
solve cluster problems
6,000,000,000
SAR
KPIs
• Percentage of industrial GDP from
selected clusters
• Export contribution to clusters
 Industrial GDP contribution by Region
Initiate creation of technology cluster
committees that will collaboratively
solve cluster problems in medium
and high-tech industrial complexes,
encourage development of
specialized infrastructure to support
technological clusters
4,000,000,000
SAR
Promote advanced technology
acquisitions and strengthen R&D
capabilities of private / academic
sectors
2,500,000,000
SAR
Engage in promotion of Saudi
industry to raise its profile among
investors
500,000,000 SAR
Total 5 year Budget
11
5 Year Budget
Private and Confidential
 Number of new factories per province
 Number of industrial companies in
clusters with high-end value-added
products and services
 Investment in high-end value-added
target sectors
13 Billion SAR
 Percentage of technology-based
exports (30% of the manufactured
exports)
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
Industrial Clusters – High Level Timeline of Implementation Plan (1/2)
Activity
Year 1
2.1.1. Create Cluster Committees
Set Up
Preparation of committees for regular operation
Committees are operational
2.1.2. Create Cluster Strategy Unit
Set Up
Ramp Up
Unit is operational
2.1.3. Institute Cluster Development Funding
Organization set up
Financing Process set up
CDF is operational
2.1.4. Institute Specialized Cluster
Infrastructure Funding
Organization set up
Financing Process set up
SCIF is operational
2.1.5. Develop Industrial Development Centers
Set Up
Ramp Up
IDCs are operational
12
Private and Confidential
Year 2
Year 3
Year 4
Year 5
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
Industrial Clusters – High Level Timeline of Implementation Plan (2/2)
Activity
Program 2.2 – Technological Industrial Complexes
2.2.1. Create technology Cluster Committees
Set Up
Preparation of committees for regular operation
Committees are operational
2.2.2. Institute Specialized Technology
Infrastructure Funding
Organization set up
Financing Process set up
STIF is operational
2.2.3. Institute Technology Cluster
Development Funding
Organization set up
Financing Process set up
TCDF is operational
Program 2.3 – Advanced Technology Pathways
2.3.1. Institute Specialized Cluster
Infrastructure Funding
Organization set up
Financing Process set up
SCIF is operational
Program 2.4 – Industrial Promotion Program
2.4.1. Industrial Promotion Campaign
Support Quality Upgrading
Industrial Export Promotion
Promote Saudi Arabian Industry
Promote Specific Opportunities
2.4.2. – Institute Market Information Funding
Build Skills in Market Data Collection and Analysis
Promote Joint Exhibitions
Finance Market Research and Feasibility Studies
13
Private and Confidential
Year 1
Year 2
Year 3
Year 4
Year 5
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
SMEs- Implementation Plan Summary
Program
Description
5 Year Budget
KPIs
• Number of quality
jobs created by
industrial SMEs
• Percentage of
industrial SME GDP
to total GDP
• Percentage of SME
GDP to total GDP
• Total industrial SME
exports
• Number of new
industrial SMEs
1. Small, Medium
Industry Facilities
Program
100,000 + new jobs plus productivity
gains.
Also increase the number of innovations
and exports
2,075,000,000 SAR
2. Industrial
Entrepreneurship
Program
50,000 + direct new jobs plus 50,000 +
indirect jobs
1,230,000,000 SAR
3. Local Industrial
Resource Centers
Program
The focal point for delivery of Business
Development Services to iSMEs
900,000,000 SAR
4. SME Center and
Industrial
Modernization
Program
The Centre will provide leadership in
policy, funding mechanisms and support
programs for iSMEs
120,000,000 SAR
Increase the number of iSME exporters
and the volume of exports
Also improved access to finance for
iSMEs by promoting innovative financial
instruments and training
2,117,000,000 SAR
5. Industrial SME
Financing
Mechanisms
Program
Total 5 Year Budget
14
Private and Confidential
6.442 Billion SAR
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
SME Development – High Level Timeline of Implementation Plan
Activity
Year 1
3.1 Existing Industrial SME Support Programme
Set Up phase with partners and service providers
Finalizing Implementation detailed plans
Programme operational
3.2. Industrial Entrepreneurship Support Programme
Set Up phase with partners and service providers
Definition of detailed action plans and initiatives
Roll out and implement programme
3.3. Local Industrial Resource Centre’s Programme
Organization definition and set up
Detailed work plans developed
Phasing in and operations of local centres
3.4. National Industrial SME Centre
Organization set up
Set up phase
Operational phase
3.5. Industrial SME Financing Mechanisms Programme
Set Up programme with partners
Detailed action plans developed and agreed
Operational phase of programme
15
Private and Confidential
Year 2
Year 3
Year 4
Year 5
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
Industrial Innovation – Implementation Plan Summary
Program
Description
5 Year Budget
KPIs
1. Coordination of
Industrial Innovation
Program
• Establish the National Industrial
Innovation Center to coordinate and
manage innovation activities in
Saudi Arabia
300,000,000 SAR
• Establish the Emerging Economies
Industrial Innovation Council and
initiate joint projects and initiatives
with other emerging economies
1,100,000,000 SAR
1,300,000,000 SAR
3. Industrial Innovation
Funding Program
• Provide funding and support
mechanisms for innovation-based
entrepreneurs, start-ups and SMEs
4. Innovation
Commercialization and
Specialized
Technology Centers
• Establish the regional Industrial
Innovation Commercialization
Centers and platforms-based
Specialized Technology Centers
700,000,000 SAR
• Develop programs to promote
innovation and creativity in:
– Saudi society
– Saudi education system
– Saudi corporations
500,000,000 SAR
5. Innovation Culture
and Entrepreneurship
Program
• Business expenditure on
R&D as a percentage of
GDP
• Imports of R&D equipment
(check customs categories)
• Export of high-tech
products
• Number of industrial
innovation projects
incubated in academia, and
implemented in industry
• Number of industrial
patents issued
• Number of innovationrelated collaborative forums
held
• Number and value of
industrial innovation
projects commercialized
through selected
commercialization centers
• Public investment made in
industrial innovation
2. Emerging
Economies Research
and Industrial
Innovation Program
Coordination Council
Total
16
Private and Confidential
3.9 Billion SAR
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
Industrial Innovation – High Level Timeline of Implementation Plan
Activity
Year 1
Year 2
Year 3
Coordination of Industrial Innovation Program
Structure the National Industrial Innovation Center
Programs for Ind. Innovation and Mechanisms for Stakeholders
Industrial Innovation Platforms and Commercialization Centers
Emerging Economies Research
Emerging Economies Innovation Council
Programs and Policies to Establish and Promote Collaboration
Joint Projects and Initiatives with other Emerging Economies
Industrial Innovation Funding Program
Establish Funding Program
Promote Awareness around Funding Program
Coordinate Projects and Measure Project Effectiveness
Commercialisation and Technology Centres
Design and Launch Commercialisation Centres
Design and Launch Application Development Centres
Attract Partners, Promote Centres and Measure Results
Programs to Foster Innovation Culture
Promote Innovation and Creativity in Saudi Society
Promote Innovation and Creativity in Education System
Promote Innovation and Creativity in Saudi Corporations
Various Council meetings, Review Sessions, etc
17
Private and Confidential
Various Sub Committees
Annual Meetings, etc.
Year 4
Year 5
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
Human Resources– Implementation Plan Summary
Program
Description
5 Year Budget
1. Industrial
Manpower
Capabilities Building
• Propose mechanisms for
curriculum reform in
partnership with the private
sector
600,000,000 SAR
2. Jobs Creation for
Saudis in the
Industrial Sector
Throughout the
Kingdom
• Creation of a new Industrial
Education Consulting
Council to oversee industrial
labour issues
• Programs to improve
perceptions of both
industrial jobs, and Saudi
workers
1,700,000,000
SAR
400,000,000 SAR
3. Complementary
Training
• Mechanisms to widen the
use of apprenticeships and
internships in industry
• Recommendations to boost
the prevalence of On The
Job training
4. Industrial Skills
Establishments
• Mechanism for monitoring
and tracking industry’s
current and future
manpower needs
Total
18
Private and Confidential
1,800,000,000
SAR
4.5 Billion SAR
KPIs
• Number of graduates in technical or
vocational programs who get an
industrial job
• Number of graduates in technical or
vocational programs who get a job in
industrial knowledge based sector
• Investment in industrial skills
(technical and vocational)
• Number of hours of training per
industry worker
• Percentage of industrial workers that
are trained
• Number of industrial internships and
apprenticeships
• Industrial productivity index (US
bureau of labor stats)
• Number of Saudi workers in the
industry
• Number of workers in the industry
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
Human Resources – High level timeline of Implementation Plan
Activity
5.1.1 Provision of Skills for Industrial Workers from Postgraduate
and Specialized Degree Programs
5.1.1 Curriculum Reform in Postgraduate Education
5.1.2 Provision of Skills for Industrial Workers from Undergraduate
and Specialized Degree Programs
5.1.2a Curriculum Reform in Undergraduate Education
5.1.2b Teaching Reform in Undergraduate Education
5.1.2c Certification and Accreditation in Undergraduate Education
5.1.3 Provision of Skills for Industrial Workers Graduating from
Vocational and Secondary School
5.1.3a Curriculum Reform in Vocational Education
5.1.3b Teaching Reform in Vocational Education
5.1.3c Certification and Accreditation in Vocational Education
5.1.3d Curriculum Reform in General Secondary Education
5.2.1 Promotion of Industrial Careers to Saudis
5.2.2 Promotion of Saudis to Industrial Employere
5.2.3 Measurement of Industrial Sector Demand for Manpower and Skills
5.2.4 Creation of the Industrial Education Consulting Council
5.2.5 Support for Industrial Employers in Making Capital Investments
5.2.6 Drafting Policy Recommendations and Collaborating For Their Introduction
5.3.1 Create Complementary Industrial Training Program
5.3.1a Promotion of Apprenticeships
5.3.1b Promotion of Internships
5.3.1c Promotion of On-The-Job Training
5.4.1 Establish Industrial Colleges and Institutes
5.4.1a Tracking of Cluster- and Sector-Specific Demand for Skills
5.4.1b Creation of Specialized Industrial Colleges with Industry
5.4.1c Creation and Promotion of Specialized Private-Sector Run Training Courses
19
Private and Confidential
Year 1
Year 2
Year 3
Year 4
Year 5
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
Infrastructure– Implementation Plan Summary
Program
1. Industrial Cities
and Regional
Knowledge Zones
(Industrial Platforms)
Program
2. Enhancement of
Services and
Industry Support
Activities Program
3. Fuel, Electricity,
and Water for the
Industry
Description
• Encourage industrial development
through the provision of industrial
land and infrastructure
• Diversify the base of industrial
development
Private and Confidential
MODON
• Improve services available to
industry across industrial platforms
• Enable upgrades in supply, delivery,
transport, shipment and industrial
storage; stimulating initiation of
industrial support service
companies; improving industrial
information and communications
network
1,400,000,000 SAR
• Adoption of appropriate policy(s)
with regard to pricing; industrial
uses, availability and allocation of
natural gas, other fuels, electricity
and water
8,500,000,000 SAR
Total
20
5 Year Budget
9.9 Billion SAR
KPIs
• (investment in industrial
infrastructure / GDP)
• Number of land permissions
for building industrial
platforms
• Number of tons handled by
ports
• Number of tons handled by
road
• Number of tons handled by
air
• Total output from industrial
cities and platforms
• Number Industrial Knowledge
zones
• Number of industrial
platforms
• Investment in industrial
infrastructure outside the
corridor
• Accidents related to chemical
or oil spills
• Air quality index
• Water quality index
• Industrial waste water treated
• Industries with gaseous
emissions treated
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
Modon estimates a need of SAR 30 billion in funding to
develop its industrial cities to 2020
Proposed Modon Budget (SAR millions)
35,000
1,091
360
30,000
4,000
25,000
5,850
20,000
31,136
15,000
10,000
19,835
5,000
0
Development &
Completion of
Industrial Cities
Connecting
road, rail and
utilities to the
boundaries of
the industrial
cities
* Shell factories
** Street lighting, landscaping, pavements
Source: Modon Strategy and Budget Document
21
Private and Confidential
Ready built
plants*
Rehabilitation**
Electronic and
Security
Services
Total
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
Axis 6 budget will complement Modon’s budget by addressing
additional areas that support infrastructure needs
5-Year Budget – Axis 6: Breakdown of 9.9 billion SAR
Program & Initiative No.
2. Enhancement
of Services &
Industry Support
Initiative Details
2.1
400 Encourage base & gov. services provision in industrial platforms
1,000 Improve provision of industry-related value-added services
2.2
3.1
3. Utilities for
Industry
Total:
SAR 9.9B
50
3.2
80
Execute studies: Role of pricing and standards
3.3
80
Execute studies: Role of regulatory / sector reform
Develop conservation plans; assets for
cogeneration, retrofit & upgrades
3.4
3,040
3.5
5,250 Plan & organize utilities provision for ICs*; deploy
assets for generation, transmission & distribution
0
* Note: IC – Industrial Cities
22
Execute studies: Role of utilities in industrialization policy
Private and Confidential
500
1,000
1,500
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
Infrastructure – Implementation Plan Timeline (1/2)
Activity
Program 6.1 – Industrial Platforms
6.1.1. Develop coordinated process for allocation of land
Establish committees
Align key elements of spatial and industrial policy
Monitor progress and effectiveness of policy changes
6.1.2 Reengineer industrial land & infrastructure provision
Establish committees
Amendments to by-laws, mandates and policies
Implement regulatory changes and monitor progress
6.1.3. Improve logistics infrastructure external to platforms
Establish committees, stakeholder engagement plans
Development of freight strategy & enhancement of regulations
Roll-out strategy and monitor progress
Program 6.2 – Enhancement of Industrial Services
6.2.1. Improve base services for industrial cities
Define services and planning mechanism
Roll-out enhanced service provision process
Implement processes and monitor progress
6.2.2. Provide industry-specific value-added services
Define services and planning mechanism
Roll-out enhanced service provision process
Implement processes and monitor progress
Year 1
Year 2
Year 3
Year 4
Year 5
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
Infrastructure – Implementation Plan Timeline (2/2)
Activity
Program 6.3 – Utilities for Industry
6.3.1. Role of fuel, electricity & water in industrialization policy
Establish committees, stakeholder engagement plans
Align utilities and industrial policy
Monitor progress and effectiveness of policy changes
6.3.2 Role of pricing and standards
Establish committees and private sector engagement plan
Develop standards in accordance with industrial policy
Track progress and effectiveness of standards adherence
6.3.3 Role of regulatory and sector reform
Establish committees and private sector engagement plan
Development of regulatory and sector reform
Identify regulatory changes and monitor progress
6.3.4. Fuel, electricity, and water utilization programs
Establish stakeholder working team and committee
Develop an overall position on utilities utilization programs
Implement processes and utilization programs
6.3.5. Implementation of the Utilities Action Plan
Develop value proposition via stakeholder working team
Conduct utilities needs assessment and identify capacity gaps
Implement capacity to support existing and new industry
Measure and monitor progress
24
Private and Confidential
Year 1
Year 2
Year 3
Year 4
Year 5
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
New Industrial Verticals– Implementation Plan Summary
Program
Description
5 Year Budget
KPIs
147,500,000 SAR
Characterization
and descriptive
studies for the
strategic sectors
• Implement and monitor new industry
vertical recommendations for KSA with
focus on targeting industries with mediumto-high technology content
• Formulate strategies in the area of the
current basic industrial sectors and specify
new sectors necessary to be established
• Periodic technology foresighting exercises
to support continued development of
knowledge based industries and ongoing
induction of technology and knowledge
52,500,000 SAR
• Investment in selected new
verticals
• Jobs created in in selected
new verticals
• Number of new industrial
startups per vertical
• Number of experts (national
and international) involved
in the scanning/selection
process
• Number of periodic scans
(forums, seminars,
workshops)
Forecasting
studies for the
future of
knowledge
based industries
TOTAL
25
Private and Confidential
0.2 Billion SAR
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
New Industrial Verticals– High Level Timeline of Implementation Plan
High Level Tasks
Program 1: Defining mechanisms to choose and
develop knowledge based industries (KBIs)
-Initiative 1: Studies to choose future KBI sectors
-Initiative 2: Scenario planning and stress testing
-Initiative 3: Develop strategies and roadmaps for
target sectors
-Initiative 4: “Seed project” implementation support
-Initiative 5: Marketing and promotional activities to
encourage KBI development
Program 2: Continuing development of
technologies and modern scientific industries
-Initiative 1: Establish foresighting organisation and
communications structures
-Initiative 2: Technology foresighting
-Initiative 3: Review, evaluate and iterate foresight
process
-Initiative 4: Tweak strategic plans for existing sectors
and new industry verticals
26
Private and Confidential
Year 1
Year 2
Year 3
Year 4
Year 5
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
Governance– Implementation Plan Summary
Program
Description
5 Year Budget
KPIs
110,000,000 SAR
1. Effective NIS
Governance Program
Provide effective governance support
of the National Industrial Strategy in
order to ensure successful
implementation of National Industrial
Strategy programs
To build best in class strategy
execution management practices to
ensure successful execution,
measurement, tracking, and
reporting of the National Industrial
Strategy
123,000,000 SAR
To achieve world class industrial
performance in Saudi Arabia by
nurturing the next generation of
industrial leaders and developing
industrial thought leadership.
290,000,000 SAR
To ensure that the appropriate
human resources with the required
competencies and talent are
available to help implement the
National Industrial Strategy and
ensure its success.
90,000,000 SAR
• Number of mentions in the
press, and other media
channels, regarding the
industrial strategy
• Attitudes towards industry
survey
• Number public events
conducted NIS/ NIDP
• Percentage of PPPs that
are hitting their goals
(targets)
• Percentage of initiatives
that have a partnership
agreement in place
• Total private sector
investment in PPPs
• Number of initiatives on
time
• Percentage of strategy
maps and other NIS
information shared
• How often the NIDP
website is updated
• Percentage of high priority
initiatives not funded
2. National Industrial
Strategy Execution and
Measurement Program
3. National Industrial
Leadership Program
4. Human Capital
Development Program
Total 5 Year Budget
27
Private and Confidential
0.613 Billion SAR
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
Governance - High level timeline of Implementation Plan
Activity
Program 8.1
Ongoing Studies
Total Communications
PPP Unit Development
2010
Desig
n
2011
2012
2013
Execution
Setup
Operations
Strat Map Processes
Setup
Execution
Strat Map Tool
Desig
n
Program 8.2
Impl
eme
nt
Operate
Strat Map Assessments
Program 8.3
Development Institute
Setup
Operations
Think Tank
Setup
Operations
Circle 100 Club
Setup
Operations
Data Repository
Setup
Collect
ion
Operations
Program 8.4
28
Recruiting
Setup
Operations
Talent Development
Setup
Operations
Performance Management
Setup
Operations
Human Resource Systems
Setup
Operations
SME Program
Setup
Operations
Private and Confidential
2014
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
Organizational Design
Steering
Committee
NIDP Executive Director’s
Office
Industrial Strategy
Advisory
Board
4-5
FTEs
Support Functions
Develop flexible, dynamic strategies, and
monitor and review NIS progress
Strategy Dev’t


Deliver scenarios &
foresighting
Refine flexible,
dynamic strategy
Functional units support NIDP activities
and execution of NIS programs
Strategy Execution
IT, Data & KM
HR Planning
Monitor NIS KPIs &
keep scorecard
Cascade strategy
through org units
PR &
Communications
Finance & Legal


Industrial Development
Industrial Environment
4-5
FTEs
Programs Unit

Policy
Strategy Unit

Own & drive
strategy for
improving industrial
policy
Own policy-focused
NIS initiatives
Policy
Enactment Unit


Pursue change on
the ground
Lobby & exert
influence to
succeed in
regulatory
improvements
External Partners
29
29
Private and Confidential
4-6
FTEs
Industrial Enablers
Drive NIS programs with most direct
benefits to industrial private sector
Drive policy and regulatory change to
improve the business environment

6-7
FTEs
Own NIS initiatives
that provide most
direct support to
industry e.g.,
– liaison &
partnerships
– funding
– data collection &
dissemination
– FDI attraction
Engagement Unit


Identify, engage &
attract private sector
partners to support
program execution
Respond to & support
emerging
opportunities to
improve industrial
contribution to GDP
External Partners
8-9
FTEs
Drive and coordinate NIS programs related to
enabling environment for industry
Programs Unit

Own & drive NIS
initiatives related to:
– SMEs &
Entrepreneurship
– Innovation
– HR & Industrial
Skills
– Infrastructure
Engagement Unit


Identify, engage &
attract public sector
entities as execution
partners
Manage & strengthen
partnerships , and
build support for NIS
External Partners
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
Strategy Management
NIS Strategy Map
Owner: NIS Owner
Theme
Axis 1- Business Environment
Dashboards
Owner:
Major
Stakeholders
In order to measure operational objectives we propose
a matching a set of KPIs
High Level KPIs
NIS Strategy
Level
1. Establishing a sound Business Environment
Axis Operational Level
30
30
Private and Confidential
1.1.1 Develop policies and
laws to promote competition
and improve the business
environment
1.2.2 Promote fairness
and strengthen its
enforcement in relation to
commercial disputes
1.3.2 Facilitate private
investment in industry
(eg. Reform, registration,
licensing, permits and
trade facilitation.)
Operational KPIs
1.1.2 Build institutions for
policy and regulatory
analysis, change and
enforcement
 14
KPIs are used to
determine progress
against every
objective.
NIDP Strategy Map
Owner: NIDP Executive Director
NIDP Strategy Map
NIDP KPIs
Objectives
“To ensure the successful implementation of the NIS by driving program execution
in collaboration with partners, tracking progress towards achieving the NIS goals”
Saudi industry, public,
and government
R1 Increase contribution of industrial
sector to the GDP to 20% by 2015
R2 Increase the number of Saudi
industrial workers 5x
Internal Process
Strategy
Environment
P1. Manage resources to focus
org on high impact, well
sequenced efforts
P2. Reduce the costs and
risks of doing industrial
business in KSA
P5. Provide clear, accountable,
and visible tracking of NIDP
efforts
R3 Industrial products to amount
to 35% of all exports
C4. Keep the Saudi
public , corporate, and
government worlds
informed on the
progress of the NIS
C2. Be an advocate,
supporter, and enabler
of Saudi Industrial
companies
C1. Ensure successful
implementation of the
NIS
R4 Mid to high-tech
content to reach 30%
C5. Support, promote,
and coordinate other
public agendas to
achieve the NIS (e.g.,
R&D, Academic, etc.)
R5 Triple the industrial
base
C6. Set a new standard
of excellence of “semipublic” agency in KSA
Development
Enablers
P4. Provide priority
P3. Identify, create, & promote
enablers to Saudi Industrial
investments to new sustainable
companies in order to
opportunities for profitable growth of
support growth
Saudi industrial companies
P6. Engage in a 2-way dialogue with relevant stakeholders
P8. Build and maintain effective partnerships with public and private entities
Human Capabilities
H2. Develop & empower a
performance-oriented and collaborative
culture
Funding
F1. Ensure sufficient & timely funding
and facilitate access to capital
VALUES:
PROACTIVE
KPIs are used to
determine progress
against every
objective.
P7. Ensure projects and efforts are completed successfully, on time, on budget, at a high level of quality
H1. Attract and retain the
world class talent
Resources
The big difference is scope –
the NIS map describes the
objectives of the Kingdom while
the NIDP describes the role of
the NIDP in achieving those
objectives
1.3.3 Encourage
compliance of the
industrial sector with
international standards
1.2.1 Remove constraints
in key factor markets;
land, labor and finance
1.1 Structure Incentive
Landscape to Balance
Playing Field for nonEnergy Sectors
Note: Red
indicates a suggested to
Theme dashboards are used by groups of major NIS
stakeholders
improvement to the NIS Map
track progress of NIS within a certain domain (e.g. Innovation). Each
of the high level objectives in the top row is take from the NIS map.
In addition, a number of operational objectives are defined for each.
The owner of the National Industrial Strategy uses the
NIS Map to track progress against the major objectives
of the NIS. Reviewed on Yearly basis to set direction
of NIS..
Relationship between the
maps
The two maps relate to one
another in a number of
important ways:
• The NIS map is used to set
the priorities of the NIDP Map
• A number of the NIS
operational KPIs and the
NIDP KPIs are similar
1.3.1 Develop / establish
incentives to attract
industrial FDI
1.4.1 Promote and facilitate the
trade of industrial products with
GCC and the world.
1.4.2 Build a Saudi
‘’brand’’
1.2 Reduce the costs and risks
of doing industrial business in
KSA through an
effective policy and regulatory
framework
1.3 Encourage industrial FDI
through sound policy, and an
attractive investment climate
1.4 Promote and strengthen GCC
and global industrial linkages and
Saudi branding
F2. Transparent and accountable
operations
PEOPLE-CENTERED
IT and Knowledge Management
K1. Maintain an up-to-date,
K2. Ensure advanced IT and ICT
capabilities to Facilitate access to key
accurate and transparent data
information for the industrial dialogue
repository
COLLABORATIVE
Responsibility
H3. Be a people-focused, open and
flat organization
RESULTS-ORIENTED
PASSIONATE

19
The Exec. Dir. Of the NIDP uses the NIDP to
manage and track progress against the progress the
NIDP is making towards accomplishing the NIS.
Each objective and
its KPIs are the
responsibility of
one of the NIDP
unit heads..
National Industrial Strategy
‫االستراتيجية الوطنية للصناعة‬
The NIS has the potential to transform KSA into truly diversified,
knowledge based economy which can compete on a global level
A truly diversified,
knowledge based economy
More Diversified
• Engineering plastics
• Bulk specialty
chemicals
• Plastics conversion
products
More Diversified
• Bio-chemical processes
• Advanced composites
• Energy storage
Diversified
Energy Intensive
• Desalination
• Electricity
• Downstream
Petchems
Diversified
• Inorganic chemicals
• Silicon products
• Metals fabrication
Directly Related to “Others”
• Solar Power
• Mining (Bauxite)
• Cement
• Glass
• Water
Directly Related to Oil
• Refining
• Petrochemicals
• Commodity Plastics
Conventional Natural Resources
(Oil & Gas)
Other Natural Resources
(Sun, Sand, Sea, Metals)
This is a strategy for the Nation and it can only succeed if it is embraced by the Nation
31
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
The NIS is only a catalyst for change; we need buy-in and participation
from all sectors of Saudi Arabia in order to make this work
Key Stakeholders
• Government Agencies
• Private Sector Industries, Businesses,
and Financial Institutions
• Public Sector Companies and
Conglomerates
• Academic and Research Institutions
• International, Investment and Trade
Organizations
• Media and Public Relation Bodies
• General Public
NIS
Successful Economic
Diversification
• We have extensively engaged key stakeholders across all sectors
–
Work group members are key stakeholders who are embedded within project teams in order to
help contribute to the NIS
• Steering Committee has been established and coordination of activities have begun
We look forward to working with you in order to make the NIS implementation a
success
32
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
Supporting Material
33
Private and Confidential
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
We have gone through several stages to produce the implementation
plans; the feedback loop ensures continuous improvement
Implementation Planning and Feedback process
Stakeholders
Diagnosis & Findings
Revisions
Budget Planning
Resources
Implementation Plans
Deliverables
Make or Buy
Deliverables
Time
Time
Resources
34
34
Private and Confidential
Private and Confidential
Feedback Loop
1.
Define
Results
National
Vision
A globally
competitive industry, based on innovation and acting
as a‫الوطنية‬
major tool
Industrial
Strategy
‫للصناعة‬
‫االستراتيجية‬
in transforming national resources into sustainable wealth
R1. Increase
contribution of
industrial sector to the
GDP to 20% by 2020
Industry Focus
SUSTAINABILITY
…
R2. Increase the
number of Saudi
industrial workers 5x
R3. Industrial
products to amount
to 35% of all exports
R4. Mid to high-tech
content to reach
60%
R5. Triple the
industrial base
allow for an INDUSTRY FOCUS that delivers concrete results and ensures we fulfill our vision
Target and
Encourage
Improve
stimulate
and facilitate
the creation productivity and innovative SME
of industrial competitiveness
operations to
SMEs &
of industrial SMEs boost trade and
B2Bs
job creation
Evolve to new
technologies by
continuously
scanning and
monitoring the
technical &
industrial
landscape
Target
knowledgebased, and shift
to industries with
mid to high-tech
content
Deliver high-end
value-added
Encourage
products and services cluster formation
to address current
with regional
and future market
balance
needs
QUALITY
Focus on
industries
with
comparative
advantages for
the Kingdom
Drivers
… that together with key DRIVERS, such as Industrial Skills and Innovation, to help make KSA more productive and competitive…
Boost
competitiveness,
productivity, and
employability
Promote close
collaboration to support
industry in the ongoing
development of workforce
knowledge, skills and
abilities
Enhance the
capacity and quality
of the education and
training systems
Promote industrial
innovation focusing
on business and
commercialization
Foster a robust
innovation network,
tightly linking
academia,
government and
private sector
Promote industrial
competitiveness
through innovation
Effective
Governance
Enablers
…with ENABLERS that constitute the basis/ foundation to achieve NIS vision throughout development…
Ensure
industrial
development
maintaining
sustainability
standards
Promote
industrial
platforms and
cities, and
knowledge
zones across
provinces
Proactively manage risks, and
ensure sufficient and timely
funding and access to capital
Increase access to
various markets
through improving
supply, delivery,
shipping and
transport services
Build
sufficient and
efficient
industrial
infrastructure
Manage the execution of the
NIS through transparent,
accountable and active
governance and monitoring
Promote and
strengthen GCC
and global
industrial
linkages and
Saudi branding
Encourage
industrial FDI
through sound
policy, and an
attractive
investment
climate
Develop PPPs and ensure NIS
facilitates the creation of
commercially attractive and
economically viable business
Reduce the
costs and
risks of doing
industrial
business in
KSA
Promote and
enforce an
effective
policy and
regulatory
framework
Own and drive the industrial
dialogue, raise awareness and
help change beliefs among the
general public
‫االستراتيجية الوطنية للصناعة‬
National Industrial Strategy
The majority of the Modon budget is attributed to the development
and completion of industrial cities
Proposed Modon Budget (SAR millions)
Development & Completion of
Industrial Cities
4,500
Connecting roads
& utilities with
rights of way, to
the boundaries of
the industrial
cities
( c.19,000)
4,000
3,500
Rehabilitation
Electronic &
Security Services
in Industrial Cities
Readybuilt
plants
( c.1,000)
( c.400)
( c.4,000)
( c.6,000)
3,000
2,500
2,000
1,500
1,000
500
W
at
er
Re
N
et
ha
wo
bi
rk
lit
at
io
Te
n
ch
wo
ni
rk
ca
Se
l
rv
St
Se
ice
ud
cu
s
ie
rit
&
s
y
Ap
Se
pl
rv
ie
ic
d
es
El
ec
tro
ni
cs
M
Sh
a
el
in
lF
te
na
ac
nc
to
ry
e
Se
rv
Sh
ic
es
el
lF
ac
to
rie
s
om
Te
lc
Ro
ad
s
W
at
er
W
a
ec
st
tri
ew
ci
at
ty
er
(D
ist
Dr
rib
ai
na
ut
io
ge
n
in
IC
**
s)
Li
Te
gh
ch
tin
ni
g
ca
lS
tu
Te
di
lc
es
om
Bu
ild
N
in
et
El
g
wo
ec
m
rk
tri
an
ci
ag
ty
em
(T
ra
en
ns
t
m
is
sio
n)
El
Ro
ad
s
0
Total: SAR 31,136 million
*Note: Sum of development & Completion of Industrial Cities has discrepancy with revised total
Source: Modon Strategy and Budget Document
36
Private and Confidential
**Note: ICs – Industrial Cities