SAUDI ARABIA Country Competitiveness Profile 2019 (Report)

The report compares Saudi Arabia’s manufacturing competitiveness with three comparator countries: Brazil, South Africa, and Turkey. Although not the largest economy in the four countries, Saudi Arabia has the highest manufacturing productivity as reflected by the high MVA per capita and technology intensity. Its manufacturing growth is also stable. However, there is still a distance from leading industrialized countries. These can be reflected by Saudi Arabia’s positions in world competitiveness rankings.

In comparison with Brazil, South Africa, and Turkey, the diversity of manufacturing production and export in Saudi Arabia is relatively low. Manufacturing production and export in Saudi Arabia have strong reliance on a few economic activities and products. In particular, the dependence on oil sector remains relatively strong. This provides supportive evidence for the Kingdom to reduce its high reliance on oil sector and diversify its economy, particularly manufacturing, as set in Vision 2030.

Increasing a country’s technological deepening and upgrading is at the heart of the structural change process needed for emerging and developing countries. Manufacturing in Saudi Arabia has a high intensity of technology comparing with the three comparator countries. This provides suitable spaces for promoting gender equality and youth employment in the Kingdom, as strongly emphasized in Vision 2030.