Saudi Arabia’s Industrial Competitiveness Programme (ICP), launched at the beginning of 2024 by the Ministry of Industry and Mineral Resources, is reshaping the Kingdom’s industrial landscape through a strategic focus on efficiency, sustainability, and innovation.
The programme, whose core objective is to enhance the continuity and competitiveness of existing industrial companies, is helping its beneficiaries achieve financial sustainability while transitioning toward cleaner and more efficient energy usage.
Developed in partnership with over seven government entities and private-sector experts, the ICP reflects the Kingdom’s commitment to enabling a future-ready industrial base aligned with national socio-economic diversification and environmental goals like “Vision 2030” and “Net-Zero by 2060.”
A Historical Foundation Of Industrial Growth
Over the past five decades, the Kingdom’s industrial sector has grown significantly, supported by strong government backing and focused on promising industries such as chemicals, food processing, and manufacturing. Efforts have been directed toward building a diversified industrial economy by launching initiatives in non-oil sectors with high potential. The “National Industrial Strategy” was developed to create high-quality investment opportunities, diversify growth, and expand investments across multiple sectors.
“The Ministry of Industry and Mineral Resources continues to drive the growth of industrial GDP through 2035, enhancing the sector’s competitiveness in regional and global markets. These efforts align with national strategic objectives, studying the cost structure of existing facilities, analysing key variables, and shaping policies that strengthen the sector through the Industrial Competitiveness Programme,” the authority told the Global Business Outlook.
2024-2025: Measurable Progress And Expanding Reach
Since its launch, the ICP has attracted strong interest from industrial companies across the Kingdom, with many factories already benefiting from tailored support solutions. These initiatives are designed to improve operational performance, enhance cost efficiency, and accelerate the adoption of energy-efficient technologies.
Participating factories have reported meaningful improvements in energy performance and reductions in operational costs, helping strengthen their financial sustainability while supporting the Kingdom’s broader environmental objectives. The programme also promotes collaboration across the industrial ecosystem by enabling factories of different sizes, including small and medium-sized enterprises, to access technical guidance, energy assessments, and modern equipment upgrades.
Through cooperation with organisations such as the Saudi Authority for Industrial Cities and Technology Zones, factories located in industrial cities are able to benefit from specialised consulting services and energy-efficiency programmes designed to improve performance while reducing resource consumption.
Developing Skills And Industrial Expertise
Alongside technology upgrades, the programme places strong emphasis on human capital development. Training initiatives developed in collaboration with the Saudi Energy Efficiency Centre and the National Academy for Industry aim to equip industrial professionals with the knowledge and skills needed to implement energy-efficiency practices and modern energy-management systems.
These efforts contribute to the development of a skilled workforce capable of sustaining improvements in industrial efficiency while supporting long-term competitiveness across the sector.
Strengthening Economic And Environmental Outcomes
Beyond individual factories, the ICP plays a broader role in supporting the Kingdom’s economic and environmental priorities. By encouraging more efficient energy use and improved resource management, the programme contributes to reducing industrial emissions while helping maintain the sector’s role as a key driver of national economic growth.
The initiative also strengthens investor confidence by maintaining a stable regulatory environment and supporting companies in improving operational resilience and long-term sustainability.
A Broader Competitiveness Framework
Looking ahead, the ICP is preparing to enter a new stage of development. According to the Ministry, “Phase Two” of the programme will expand its scope beyond energy efficiency to encompass a comprehensive cost competitiveness framework, focusing on evaluating labour, material, and logistics costs, apart from identifying key challenges and opportunities to improve overall industrial cost structures.
The findings from this phase will form the foundation for “Phase Three,” which will deliver holistic solutions to optimise working capital, production utilisation, and value chain integration across the sector. These forward-looking efforts will ensure that Saudi Arabia’s industrial sector not only sustains its current momentum but continues to evolve as a regional and global benchmark in efficiency, sustainability, and competitiveness.