Nsd En · Page 55

07 
Sub-Sector 
Strategiesـ
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Building 
Materials
Trends of the Sub-sector
Potential Implication for NIS 
Summary of Main Market Trends
Offsite 
construction
Modern methods 
of construction
Advanced 
methods of 
construction
Sustainability 
and carbon 
footprint 
reduction
Circular economy
•	
Government mandate to move construction 
off-site, particularly with mega-projects (e.g., 
NEOM, The Red Sea Project)
•	
Increased demand for fast delivery, cost-effec-
tiveness, and eco-friendliness drives the de-
mand for pre-fabricated buildings
•	
Increased use of modern methods of construc-
tion (e.g., insulated precast systems, insulated 
concrete forms, etc.) as part of Ministry of Hous-
ing’s BTSI initiative to reduce costs and increase 
sustainability
•	
Increased use of advanced methods of construc-
tion (e.g., 3D Printing, Robotics, etc.) especially 
those recommended by Ministry of Housing’s 
BTSI initiative to enhance project delivery, in-
crease sustainability and increase project af-
fordability
•	
Increasing regulations and incentives promoting 
energy efficiency solutions and reducing energy 
use in building materials and construction (e.g., 
green cement - currently being used in NEOM 
and The Red Sea Project’s construction, use of 
non-metallic insultation)
•	
Increased recycling efforts and growing adop-
tion of recycled materials for manufacturing 
new products (e.g., glass, cement, bricks)
•	
Increased government initiatives to promote re-
cycling, following environment concerns world-
wide for effective waste management
Non-metallics in 
construction
•	
Proliferation of non-metallics as an energy-ef-
ficient solution for insulation (covered in more 
detail under the Chemicals Cluster)
•	
Potential replacement of metals by non-metal-
lic FRPs in the long run, due to durability and 
strong static properties
07. Sub-Sector Strategiesـ07. Sub-Sector Strategiesـ
07 
Sub-Sector 
Strategiesـ
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Machinery and 
Equipment
The Importance of the Machinery and Equipment Industry sub-sec-
tor
Machinery and Equipment (M&E) covers a very wide range of equipment 
that can be categorized based on its application (upstream, downstream, pet-
rochemicals, mining, power generation, renewables, water & wastewater, 
construction, and others) as well as its technical functionality (rotating equip-
ment, electrical equipment, static equipment, general industrial equipment, 
and specialized equipment).
The M&E sub-sector is of special strategic relevance for the development of 
the manufacturing sector since it not only provides the equipment used in 
manufacturing and maintenance (e.g., welding equipment, spare parts) for 
all other sub-sectors but also equipment for the ongoing operations of other 
activities critical to the KSA economy (e.g., O&G, desalination, construction).
Through 2030, all economic activities will grow in line with the direction of 
Vision 2030. The industrial sub-sectors will see a dramatic increase in line 
with the NIS. KSA’s local M&E manufacturers have a unique opportunity to 
increase market share and manufacture the equipment that will be required 
by all sub-sectors to achieve the NIS objectives. giga projects such as NEOM 
will require large amounts of equipment during construction. The new man-
ufacturing facilities established by the investment attracted by the NIS will 
also require equipment for their operation