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Saudi Arabia to become high-tech manufacturing hub?

36 1
30.05.2025

"Made in Saudi Arabia" — the suggestion has been hyped ever since US President Donald Trump imposed high tariffs on goods produced in China and other Asian countries.

"Saudi Arabia should be sending their trade representatives to the Trump administration right now, asking, 'What was China providing you? Tell us what it is and we will make it in Saudi Arabia'," Ellen Wald, a historian and author of the 2018 book "Saudi, Inc.: The Arabian Kingdom's Pursuit of Profit and Power," told media outlet Middle East Eye in April.

China and other countries, including Vietnam and Thailand, are all major centers for manufacturing with many multinational companies, from Adidas to Apple, making everything from laptops to tracksuits there. But in April, the Trump administration imposed higher tariffs on them.

Other nations managed to escape the toughest Trump tariffs. Most Gulf states, including Saudi Arabia and the United Arab Emirates, were only landed with 10% tariffs.

One of the options companies have used to avoid high tariffs in the recent past has been to pivot to manufacturing in low-tariff nations. For many international businesses, this started a few years ago as US-China trade tensions grew — it's part of the reason why Vietnam and Thailand have been doing so well in this sector.

Both Saudi Arabia and the United Arab Emirates have been trying to diversify........

© Deutsche Welle