Saudi Arabia clean energy: Vision 2030 and green hydrogen production as pillars of sustainable industrialization in the Gulf

Riyadh, Saudi Arabia – Saudi Arabia is emerging as a regional leader in sustainable industrialisation, driving efforts to reshape the Gulf’s industrial and energy sectors, according to experts at the 2024 UN Industrial Development Organization (UNIDO) Multilateral Industrial Policy Forum. The forum, held in Riyadh, highlighted the Kingdom’s role in fostering clean energy initiatives and industrial growth, propelled by its ambitious Vision 2030 agenda.

Naif Al-Osaimi, Executive Vice President of the National Industrial Development and Logistics Program (NIDLP), underscored Saudi Arabia’s pivotal role in steering the Middle East towards a sustainable industrial future. “The National Industrial Development and Logistics Program is one of the Vision 2030 pillars aimed at diversifying and growing the Saudi economy,” Al-Osaimi said. “Our goal is to transform the Kingdom into a leading industrial powerhouse and a global logistics hub while maximising the value of our energy and mining sectors.”

At the core of this transformation is Saudi Arabia’s commitment to renewable energy, particularly green hydrogen production. According to UNIDO’s “Industrial Development Report 2024,” the Kingdom is “leveraging renewables to produce green hydrogen,” marking a crucial step towards reducing carbon emissions and promoting a low-emission economy. This aligns with Saudi Arabia’s broader goal of becoming a global leader in clean energy, decreasing its reliance on fossil fuels while advancing its industrial sector.

Al-Osaimi explained that the synergy-driven approach of the NIDLP ensures that different sectors within the economy work together, creating a cycle of maximised economic value. “In NIDLP, we build on the synergies between sectors, making sure that each one feeds into the next to generate the maximum economic value,” he added.

Saudi Arabia’s leadership is not limited to its borders; it forms part of a larger movement within the Gulf Cooperation Council (GCC) to promote sustainable industrialisation. The Gulf Organization for Industrial Consulting (GOIC) has been instrumental in coordinating industrial policies across the GCC, fostering collaboration to ensure that each nation benefits from shared advancements in technology, energy, and infrastructure. This collective effort is accelerating the region’s shift towards a more sustainable and diversified economy.

Neighbouring Bahrain has also made significant strides in sustainable industrial development. Khaled Al-Alawi, Assistant Undersecretary for Industrial Development in Bahrain, shared insights into Bahrain’s strategy during the same panel, outlining how the nation is working in tandem with its Gulf counterparts to adopt green technologies and modernise its industrial base.

Saudi Arabia’s leadership in clean energy and industrial growth, highlighted at the UNIDO forum, reflects the Kingdom’s broader Vision 2030 strategy. This plan aims to diversify the economy, create a globally competitive industrial sector, and cement Saudi Arabia’s position as a leader in the energy transition.