Nsd En · Page 47

07 
Sub-Sector 
Strategiesـ
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Maritime 
industries
The Importance of Maritime Industries  Sector
Maritime Industries is important to the Kingdom, as it seeks to localize the 
shipbuilding industry and its related operations and maintenance and over-
haul (MRO) . Expectations indicate that by 2030, maritime Industies will 
contribute by 10 billion Saudi riyals to the GDP and create 32,000 jobs. The 
The importance of the maritime industries stems from the growing lo-
cal demand, substitution away from imports, ambition to localize new 
industrial segments, and create opportunity for exports.
Shipbuilding will enable the Kingdom to localize the manufacturing of com-
mercial, naval and recreational ships by establishing a world-class hub (King 
Salman Complex for Maritime Industries) and attracting ship manufacturers 
and service centers to the Kingdom. It will also contribute to creating new 
high-value-add jobs for Saudi nationals. Accordingly, this will enable the 
Kingdom to diversify the economy through the localization of a new industri-
al segment where 90% of the Kingdom’s demand is imported at the current 
state.
Market and Trends
Global Market
The global ship demand was estimated to be USD 201 bn in 2019. This can be 
further broken down into three segments: commercial vessels, naval vessels, 
and recreational vessels. 
The first segment, commercial vessels, includes bulk carriers, LNG carriers, 
containers, offshore vessels, and cruise vessels. The market size of this seg-
ment in 2019 was estimated to be USD 79 bn or 181 mn deadweight tonnage 
(dwt). Commercial shipbuilding has suffered in recent years due to oversup-
ply and a reduction in global oil trade. Investments have dropped by 43% in 
2019 compared to 2013 figures, while the supply market is currently dominat-
ed by China, South Korea, and Japan, which own a combined 96% of total 
supply by volume. 
The second segment, naval vessels, includes submarines, aircraft carriers, 
destroyers, patrol boats, and landing craft. This segment, on the other hand, 
is growing, with a total estimated market size at USD 89 bn in 2019. The top 
40% of this supply is controlled by 4 players, while the remaining 60% is frag-
mented among smaller players.
The last segment, recreational vessels, includes yachts, superyachts, power-
boats, and passenger ferries. This fast-growing segment had a market size 
estimated at USD 33 bn in 2019 and is expected to grow at a rate of 11.8% an-
nually. 
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Maritime Industries Sub-sector
07. Sub-Sector Strategiesـ07. Sub-Sector Strategiesـ
07 
Sub-Sector 
Strategiesـ
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Maritime 
industries
Regional market
For commercial vessels, KSA is currently the largest buyer regionally with 
major demand coming from the Oil & Gas industry. The annual demand for 
KSA was 579 dwt, compared to 277 dwt for the UAE and 150 dwt for Oman. 
Currently most of the GCC demand is fulfilled by global leaders (South Ko-
rea, China, and Vietnam) while local production focuses on small ships. Most 
GCC countries have localized their ship repair needs, but KSA still relies on 
overseas capabilities for repair and maintenance. 
Similarly, regional naval vessel demand is fulfilled by global shipbuilders with 
2019-2028 demand estimated at SAR 198 bn. A total of SAR 81 bn has been 
awarded, but only SAR 14 bn went to regional shipyards while the remaining 
SAR 67 bn went to G