Here’s a detailed article about the Saudi Arabian NIDLP program and its impact on the non-oil GDP, based on the provided JETRO news release, presented in an easy-to-understand manner:
Saudi Arabia’s NIDLP Program Fuels Non-Oil Growth, Contributing 39% to GDP in 2024
Tokyo, Japan – July 24, 2025 – Saudi Arabia’s ambitious National Industrial Development and Logistics Program (NIDLP) is yielding significant results, with the non-oil sector contributing an impressive 39% to the Kingdom’s Gross Domestic Product (GDP) in 2024. This remarkable achievement, as reported by the Japan External Trade Organization (JETRO), highlights the success of the program in diversifying the Saudi economy away from its traditional reliance on oil.
What is the NIDLP Program?
Launched as a cornerstone of Saudi Arabia’s Vision 2030, the NIDLP is a transformative initiative designed to revolutionize and grow key industrial, mining, energy, and logistics sectors. Its overarching goal is to create a globally competitive industrial and logistics powerhouse within the Kingdom, thereby fostering economic diversification and creating sustainable job opportunities for Saudi citizens.
The program focuses on several core pillars:
- Industrial Development: Encouraging the growth and modernization of various industries, including manufacturing, petrochemicals, pharmaceuticals, automotive, and more.
- Mining: Unlocking the vast potential of Saudi Arabia’s mineral resources beyond oil, such as gold, copper, phosphate, and bauxite.
- Energy: Developing and diversifying the energy sector, with a strong emphasis on renewable energy sources like solar and wind power, alongside advancements in traditional energy efficiency.
- Logistics: Transforming Saudi Arabia into a global logistics hub by enhancing its ports, airports, railways, and road networks, facilitating trade and investment.
The Impact on Non-Oil GDP: A Game Changer
The 39% contribution of the non-oil sector to Saudi Arabia’s GDP in 2024 is a clear indicator that the NIDLP is successfully shifting the economic landscape. This signifies a substantial move away from the historical dominance of oil revenues. This diversification is crucial for the long-term economic stability and prosperity of Saudi Arabia, making it less vulnerable to fluctuations in global oil prices.
Key Drivers of this Growth:
Several factors have contributed to the NIDLP’s success in boosting the non-oil economy:
- Strategic Investments: Significant government investment has been channeled into infrastructure development, technology adoption, and research and development within the targeted sectors.
- Attractive Investment Environment: Saudi Arabia has actively worked to create a more favorable business environment for both domestic and foreign investors. This includes reforms in regulations, tax incentives, and streamlined processes for establishing and operating businesses.
- Focus on Key Sectors: The program has strategically identified and prioritized high-potential sectors that can drive non-oil economic growth. This targeted approach ensures that resources are allocated effectively.
- Job Creation: The expansion of these non-oil industries is directly translating into job creation for the Saudi population, aligning with the Vision 2030’s objective of empowering its citizens.
- Technological Advancement: The NIDLP encourages the adoption of cutting-edge technologies and innovation across industries, enhancing productivity and competitiveness.
What This Means for the Future:
The achievement of a 39% non-oil GDP contribution is a significant milestone, but it represents a continued journey. The NIDLP program is expected to continue its momentum, with further growth anticipated in the coming years. This ongoing diversification offers several benefits:
- Economic Resilience: A more diversified economy is inherently more resilient to global economic shocks.
- Sustainable Growth: Non-oil sectors are often driven by innovation and productivity, leading to more sustainable long-term growth.
- Global Competitiveness: By fostering world-class industries and logistics capabilities, Saudi Arabia is positioning itself as a major player in the global economy.
- Enhanced Trade and Investment: The improved logistics infrastructure and attractive investment climate are expected to draw more international trade and foreign direct investment.
Japan’s Role and Opportunity:
As a leading trading partner and investor in Saudi Arabia, Japan has a keen interest in the Kingdom’s economic transformation. JETRO’s reporting underscores the growing opportunities for Japanese companies in sectors like manufacturing, automotive, renewable energy, and logistics, which are all central to the NIDLP’s agenda. Japanese expertise in advanced manufacturing, technology, and sustainable solutions aligns well with Saudi Arabia’s development goals, presenting a fertile ground for collaboration and mutual benefit.
In conclusion, Saudi Arabia’s NIDLP program is a testament to the Kingdom’s commitment to a future beyond oil. The substantial contribution of the non-oil sector to its GDP in 2024 is a clear signal of progress, paving the way for a more robust, diversified, and sustainable economy.
サウジアラビアのNIDLPプログラム、2024年非石油部門のGDP39％に貢献
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The following question was used to generate the response from Google Gemini:
At 2025-07-24 05:30, ‘サウジアラビアのNIDLPプログラム、2024年非石油部門のGDP39％に貢献’ was published according to 日本貿易振興機構. Please write a detailed article with related information in an easy-to-understand manner. Please answer in English.