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Link to Vision 2030

An overview of the Saudi Arabian market size

Saudi Arabia is embarking on the most ambitious infrastructure transformation in its history, signaling a revolution for the Kingdom’s industrial sectors.

The Kingdom will spend more than SR1 Trillion purchasing industrial equipment & spare parts by 2030.

Approximately 75% of large contract value are spent overseas with limited value to the local economy.
With reference to statistics and predictions from Industrial Equipment and Spare Parts Development Sector – Saudi Arabian General Investment Authority (Feb 2016), we have gathered compelling projections of how localization is catalyzing the growth and development of industrial and spare parts sector of the Kingdom. 

Three major problems in the current market

Built in 1970s and 1980s

Most oil & gas, petrochemical, utility, desalination, mining, and cement plants were built in the 1970s and 1980s.

Approximately 30%

Approximately 30% of all spare parts at these plants have become out-of-warrantee, obsolete, discontinued, or no longer offered by OEMs.

Less than 10%

Currently, Less Than 10% of the local demand for spare parts are manufactured in the Kingdom and the Remaining 90% are imported from overseas. 

 

Market Size Predictions

Pumps, Valves and Compressions

Market finding suggest that Pumps, Valves, and Compressors has the highest localization potential.

SAR 245 Billion

The market for pumps, valves, and compressors is forecasted to be around SR245 Billion until 2030.

30% of Local Content

The potential for localizing pumps, valves, and compressors contributes to 30% of Local Content in the short-term.

Localization can greatly catalyze the growth and development of Saudi Arabian Market

Increasing localization by 30% of pumps, valves, and compressors could add SR1.9 Billion to the GDP and create ~5,700 – 7,250 direct jobs for the next 6-years.

Extending localization to equipment categories (including exports) could enhance local footprint up to ~SR45 Billion to the GDP by 2030. 

Factors detrimental to enabling Localization in Saudi Arabia

Lack of Visibility on Demand

One of the factors preventing potential companies from establishing presence in the Kingdom is the lack of visibility on demand across all stakeholders.

Over the next 5-years, the following list of parts could be localized

Turbines

Gas Turbine Accessories

Housings

Baseplates

Heat Exchangers

Shafts

Boilers

Seals/Gaskets

Over the next 5-years, the following list of parts could be localized

Turbines

Gas Turbine Accessories

Housings

Baseplates

Heat Exchangers

Shafts

Boilers

Seals/Gaskets

Market Trends

Reference: Vision 2030 – Thriving Economy: Investing for the long-term, Leveraging unique position, Rewarding Opportunities 

Localization defense from 2% in 2016 to 50% by 2030

Move from 19th place to 15th largest world economy by 2030

Mining GDP contribution increase to SR97 billion by 2020 create 90,000 jobs build Centers of Excellence


Contribution to GDP from 40% in 2016 To 65% by 2030

Contribution to GDP from 40% in 2016 To 65% by 2030

Contribution to GDP from 40% in 2016 To 65% by 2030

Localization oil and gas from 40% to 75% by 2030

Follow the steps to Vision 2030

Partner with us to significantly gain advantage of localizing in Saudi Arabia.

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