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Manufacturing is the key driver, says Sabic CEOby Jyotsna Ravishankar on Jan 21, 2013
Irrespective of what the global economic conditions may be, the manufacturing sector remains a key part of any national economy; and Sabic, as a world-leading manufacturer, is a strategic enabler of growth and job creation, playing a decisive part in Saudi Arabia’s socio-economic development.
With an infrastructure of 19 production complexes in Saudi Arabia alone, Sabic’s manufacturing has had a direct impact on job creation by spawning several related production and service industries supporting its manufacturing needs, said Mohamed Al-Mady, Sabic vice chairman and CEO.
In a keynote address at the Seventh MIT Pan Arab Conference in Dubai under the theme, Manufacturing for Growth, Jobs and Diversification, Al-Mady said that the Sabic experience is truly reflective of what economic benefits can accrue to the national economy from manufacturing.
In 2011, Sabic's direct value-added contribution to the GDP was about 2%. Its private sector GDP contribution was about 9%, and its contribution to the industrial non-oil sector GDP was 34%, he said.
The role of manufacturing, Al-Mady said, continues to be deeply embedded in Saudi Arabia’s ongoing economic plans.
“Sabic has always taken a proactive approach to align with the policies of the government to ensure the desired responsiveness to the needs of the country and its people,” he said.
On generating employment for Saudi nationals, Al-Mady said, “Sabic takes the process of employing local talent seriously. I am proud to say that more than half of SABIC’s global workforce of 40,000 is based in Saudi Arabia, with a Saudization rate of nearly 90 percent. Moreover, we have gone beyond our own manufacturing units to localize jobs. We are working with our contractors to maximize their employment of capable Saudis. In close collaboration with local partners in government, Sabic has also developed a program to engage and train 5,000 Saudi high school leavers to take up a wide variety of manufacturing and office support positions in Sabic.”
Stressing on the importance of education in creating jobs, Al-Mady said the company’s in-house training programs at its plants support Saudi Arabia’s national efforts to localize industrial jobs. SABIC also has an ambitious program to annually hire high school graduates with high potential. We train them thoroughly in manufacturing operations before deploying them in our plants in Saudi Arabia.
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