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Home > News and Media > Stories > Our Business > An Ecosystem for Growth and Innovation

An Ecosystem for Growth and Innovation

Manufacturing plays an integral role in any thriving economy. It fuels trade and innovation, providing valuable jobs and reducing reliance on international supply of essential goods. 

Saudi Arabia is aiming to increase the private sector’s GDP contribution from 40% in 2016 to 65% by 2030 as part of its ambitious Vision 2030 strategy, and the localization of promising manufacturing industries will be crucial. As a global company headquartered in the Kingdom, SABIC is ideally placed to help build an efficient, competitive and resilient manufacturing ecosystem.

For over four decades and in each corner of the world, we have pioneered new standards of manufacturing excellence through innovation, collaboration and talent development. This experience underpins our ability to help accelerate the economic transformation of the Kingdom by reshaping the industrial landscape. 

BUILDING THE FUTURE IN THE KINGDOM 

At the center of our approach is NUSANED™, a purpose-built and integrated localization engine that acts as our interface for all localization and industry stimulation efforts across Saudi Arabia.

Launched in 2017 to increase the growth and development of the private sector – small and medium-sized enterprises (SMEs) in particular – NUSANED™ is enabling large scale industrial localization and strengthening the production of - and demand for - domestically manufactured goods. 

NUSANED™ is open to entrepreneurs, SMEs, local firms, and international companies looking to set-up or expand operations in KSA.  Through its various programs, it addresses the key issues faced by start-ups and provides access to SABIC resources and solutions to commercialize and drive investment in opportunities that create local demand.

In 2020, 435 new local products were developed through NUSANED™ support and, to date, NUSANED has facilitated more than 2000 investment registrations and successfully developed more than 120 business cases.

WORKING IN PARTNERSHIPS 

Partnerships have been a core part of SABIC’s business and manufacturing success since it was founded in 1976. Strategic joint ventures (JV) supported our entry into new markets and ensured that new world-class technologies, processes and knowledge could be brought back into the Kingdom. 

Our best-in-class approach to JVs was recognised in 2020 as independent consultancy Water Street Partners named SABIC the top-ranked chemical company in its JVs Governance Benchmark Report.

NUSANED™ too is capitalizing on strategic partnerships that enable, support and facilitate industrial investments, while developing skillsets and employment options that can bolster the Saudi local industry and overall national progress. 

Nusaned Investment - a private equity investment company set up and wholly owned by SABIC with the mandate to invest in the growth of the Kingdom’s local content and industrial SMEs - is a testament to this. In 2020, one of the Company’s investments was forming an ambitious new JV with the SCHMID Group of Germany for the manufacturing and technology development of utility scale Vanadium Redox Flow Batteries.  

Supported by research and development facilities in Germany and Saudi Arabia, and leveraging on SABIC’s technical capabilities, the JV is in the process of setting up a gigawatts (GW) scale manufacturing facility in Jubail , the first of its kind in the region, that can lead this fast-growing utility-scale energy storage segment and serve the large expected demand for power storage in the Kingdom, a key pillar in the Kingdom’s 2030 vision…”

DRIVING DEVELOPMENT

Across the value chain, SABIC is supporting local industrial development and creating multiple venues and opportunities for growth and domestic players to excel. 

Our (Numou) is designed to enhance local suppliers and customers’ understanding of their business challenges and support the development and implementation of tailored response plans. In the first year, three local manufacturers were approved for Numou, resulting in a total localization spend of SAR 3.6M across several key categories.  

Meanwhile, our Tamayouz Program has helped local industrial manufacturing companies to optimize their productivity by debottlenecking operational challenges. In 2020, 10 local factories enrolled on the program. Across three of the factories, the operational excellence implementation phase identified potential savings of approximately SAR 18M.

DEVELOPING HUMAN CAPITAL 

Our contribution to a diverse and highly skilled manufacturing sector includes developing local talent and a sustainable workforce, with programs geared towards advancing key industrial sectors. 

Our initiatives include focused training that provides Saudi professionals with industry-specific skills and expertise. To date, more than 6600 jobs have been created as we empower a high performing localized workforce and build a bright future for manufacturing in the Kingdom. 

INTO THE FUTURE

As we move forward, SABIC will continue supporting the goals embodied in Vision 2030. We will focus on attracting and supporting investments that enhance the Kingdom’s capability to innovate and remain at the cutting edge of technology. 

By maximizing local content development through a localized value creation system, we will harness our capabilities to build long-term value and deliver ‘Chemistry that Matters.’ 

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