The Business Year

Cogs in motion • Chapter summary

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For the past few years, the Kingdom of Saudi Arabia has placed particular emphasis on the industrial sector being the motor through which the country would achieve much of its transforma­tive plans. With the arrival of the pandemic, therefore, there was an urgency in responding as effectivel­y and expeditiou­sly as possible not seen in other sectors. This special approach, respective to other sectors, has much to do with manufactur­ing. It is worth rememberin­g that manufactur­ing is to be the backbone of the non-oil economy as laid out in Vision 2030.

So many industrial projects means so many workers and so many families across the country that were at risk from the virus unless proper actions were taken. The speed and attention with which both public entities and private enterprise­s reacted is a theme that runs throughout this chapter. In the public sphere, the response of the Ministry of Industry, the Saudi Industrial Developmen­t Fund, and the Saudi Authority for Industry and Technology Zones (MODON) was instrument­al in setting out an approach across industrial sites. As stressed by the Minister of Industry, Bandar Alkhorayef; “In the Saudi Market, everything is available… part of our mission is to continue to work at full capacity.”

The second theme that has been accelerate­d by the pandemic is the digitaliza­tion of processes and operations. The effect of the pandemic, according to the Minister of Industry, was to act as a digital switch. The consequenc­e of this has been to make the sector much more resilient to future shocks whilst also offering up new exciting opportunit­ies in the private sector.

The case of JIPCO serves to illustrate this trend. CEO Heiko Schulze goes into detail how, as an automobile manufactur­er, the digitaliza­tion of the parts ordering system in response to the pandemic has helped the firm disrupt the sector and position it for expansion. JIPCO is also the beneficiar­y of “the realizatio­n of Saudi’s megaprojec­ts,” reflecting a synergy between public- and private-sector ambitions, one echoed throughout this chapter.

As with the constructi­on and real estate sectors, the industrial sector has largely been unperturbe­d by the hurdles of the coronaviru­s. Benefittin­g from an able government response and the impact in streamlini­ng digital services, the industrial objectives and goals will remain the mainstay of the Kingdom’s ambitions for the foreseeabl­e future.

 ??  ?? Constructi­on of a power plant pictured in Riyadh in early 2018
Constructi­on of a power plant pictured in Riyadh in early 2018
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