Saudi Arabia's Industrial Sector Expands By 10% In 2023 With Significant Investments

The Kingdom of Saudi Arabia has witnessed a significant uptick in its industrial sector, with a 10% increase in the number of operational factories in 2023, reaching a total of 11,549. This growth is underscored by the issuance of 1,379 new industrial licenses last year, representing SAR81 billion in investments. Furthermore, production commenced in 1,058 new factories, with SAR45 billion invested in these ventures.

Ministry spokesman Jarrah Al-Jarrah highlighted the distribution of new licenses across 25 industrial activities. The total investments for the operational factories are estimated at SAR1,541 trillion. The leading sectors in manufacturing include food products, non-metallic mineral products, formed metal products, and rubber and plastic products.

National establishments led the way in obtaining industrial licenses, securing 1,043 licenses. This was followed by foreign investments with 194 licenses and joint investments with 142 licenses. In terms of establishment size, small establishments received the majority of licenses (1,203), followed by medium-sized outfits (158), micro-enterprises (15), and large establishments (3).

The Riyadh Region emerged as the frontrunner in license issuance with 479 licenses, followed closely by the Eastern Region (340 licenses), the Makkah Region (269 licenses), the Qassim Region (87 licenses), and the Madinah Region (79 licenses).

The Ministry of Industry and Mineral Resources continues to provide monthly updates on essential industrial indicators through the National Industrial and Mining Information Center. These indicators offer insights into the nature of industrial activity within the Kingdom, showcasing changes in the sector and highlighting new industrial investments.

This growth trajectory in Saudi Arabia's industrial sector not only reflects the Kingdom's robust economic policies but also its commitment to diversifying its economy beyond oil. The strategic issuance of industrial licenses across various regions and sectors is indicative of a concerted effort to stimulate industrial development and attract investment. As these new factories begin operations, they contribute not only to the national economy but also to job creation and technological advancement within the Kingdom.

With inputs from SPA