KPMG launches policy tool to ensure national readiness of critical industries
KPMG, a global accounting and consulting firm, has launched a new framework and benchmark designed to help policymakers assess the “national readiness” of their critical industries.
Unveiled this week at the World Defense Show in Riyadh, the newly introduced National Critical Industry Readiness Index (NCIRI) has been launched in response to a growing imperative among governments to strengthen the resilience and preparedness of strategically vital sectors.
Critical industries are those considered essential to a nation’s security, economic stability, public health and societal functioning. Examples include energy, telecommunications, digital infrastructure, natural resources and defence. Disruption within these sectors can trigger severe economic consequences and widespread societal instability.
Yet in an environment increasingly shaped by geopolitical volatility, supply chain fragility, accelerating technological transformation and climate-related risk, the pressures facing critical industries are intensifying. Policymakers are therefore under mounting pressure to move beyond reactive measures and adopt more strategic, system-level approaches.
According to KPMG, such responses must be grounded in a coordinated national strategy – one that positions critical industries not as isolated sectors but as integrated pillars of economic and security policy. “This is where our new National Critical Industry Readiness Index comes in,” says Patrick Walthuis, Director at KPMG in the Middle East.
“The National Critical Industry Readiness Index is built on the premise that national resilience emerges from the interaction of multiple domains rather than isolated capabilities. The methodology assesses industry capacity, workforce availability, capital adequacy, technology maturity, supply-chain robustness, governance, and supporting infrastructure as an integrated system.”
The outcome of the index is a “holistic view of readiness across national industries,” said Walthuis, which then lays the groundwork for strategic action planning.
An early-warning system for successful execution
A central feature of the framework is its ability to identify readiness gaps before they escalate into operational or systemic disruption. “The index functions as an early-warning and decision-support tool. By identifying readiness gaps before they translate into disruption, it enables proactive intervention, targeted investment, and informed policy design. This supports governments in shifting from reactive crisis management to anticipatory governance.”
The advantage of such foresight becomes particularly pronounced during periods of stress. Research consistently shows that countries better prepared for major black swan events – whether Covid-19, extreme weather events or social unrest – not only withstand shocks more effectively but also recover more quickly and emerge in stronger condition.
“For policymakers, NCIRI supports evidence-based prioritization, cross-ministerial coordination, and structured dialogue around national resilience,” noted Walthuis. “And for industry leaders, it provides a benchmark that aligns operational capability with national economic and security objectives.”
Testing for times of stress
Walthuis emphasised that the National Critical Industry Readiness Index is designed to complement existing policy development tools and regulatory frameworks. “Traditional performance metrics and tools typically assess how industries operate under stable conditions. The NCIRI takes a different angle: it focuses on performance when conditions are not stable or under stress.”
“The index addresses a dimension often assumed but rarely measured: readiness. In doing so, it shifts attention from retrospective to forward-looking readiness, equipping governments and decision-makers with early insight into systemic strengths, vulnerabilities, and execution risk.”
A global tool
Developed by KPMG’s Middle East business, the National Critical Industry Readiness Index can be applied across the GCC and even globally. “The outcome of the index is a set of actionable insights and improvement pathways tailored to each country and industry context.”
