Dartec’s
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.
Most oil & gas, petrochemical, utility, desalination, mining, and cement plants were built in the 1970s and 1980s.
Approximately 30% of all spare parts at these plants have become out-of-warrantee, obsolete, discontinued, or no longer offered by OEMs.
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 finding suggest that Pumps, Valves, and Compressors has the highest localization potential.
The market for pumps, valves, and compressors is forecasted to be around SR245 Billion until 2030.
The potential for localizing pumps, valves, and compressors contributes to 30% of Local Content in the short-term.
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.
One of the factors preventing potential companies from establishing presence in the Kingdom is the lack of visibility on demand across all stakeholders.
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
Partner with us to significantly gain advantage of localizing in Saudi Arabia.
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