Saudi incurs ‘limited’ trade war impact, holds edge amid presence in global markets: Alkhorayef

Minister of Industry and Mineral Resources Bandar Alkhorayef said the aftermath of the ongoing global trade war and geopolitical tensions poised a “limited impact” on Saudi Arabia, compared to many other countries.

Addressing the press on the sidelines of the third edition of the Local Content Award ceremony, Alkhorayef stressed that the Kingdom holds a comparative edge that offers a strong opportunity to further expand into global markets, especially the US.

The minister said the current environment encourages local investors to enhance existing capacities and build new ones. It also incentivizes foreign investors to tap Saudi Arabia as a hub for establishing and expanding their industrial capabilities.

He said the industrial sector is well-positioned to benefit from these global changes. However, he warned of dumping risks as some foreign products may target the Saudi market with underpriced goods, emphasizing the need for local market regulation and protection.

The ministry’s plans and the broader local content strategy, according to Alkhorayef, are progressing on track. Meanwhile, he cautioned that accelerating the pace of implementation could in turn raise production costs, underlining commitment to maintaining localization without burdening the state budget.

In the same vein, Saudi Arabia is advancing steadily towards clear local content targets, despite global economic challenges and trade disruptions, the minister noted.

He added that coordinated comprehensive efforts across sectors reflected sound economic directions. The importance of balancing local investment and global leadership has been recognized — an approach already delivering results.

As for the ministry’s 2025 targets, Alkhorayef said nearly 400 teams are working on local content initiatives across various government entities. This is besides the strong engagement of major state-owned companies in these efforts.

He pointed to a newly-launched initiative offering standard-based incentives for national industrial development. The program aims to support investors building new projects aimed at the local manufacturing of several target products.