Saudi Arabia's Industrial Boom: Factories Surge by 10% in 2023

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Saudi Arabia's Industrial Boom: Factories Surge by 10% in 2023

In 2023, the Ministry of Industry and Mineral Resources reported a significant 10% increase in the number of factories operating within the Kingdom, reaching a total of 11,549. Notably, the manufacturing sector saw a robust surge with the issuance of 1,379 new industrial licenses, representing investments worth SAR81 billion.

Among the 11,549 factories, 1,058 commenced production, attracting investments totaling SAR45 billion. The top four industrial activities were food product manufacturing, non-metallic mineral product manufacturing, formed metal product manufacturing, and rubber and plastic product manufacturing.

National establishments dominated the industrial landscape, acquiring 1,043 licenses, followed by foreign investment (194 licenses) and joint investment (142 licenses). Small establishments held the majority of licenses (1,203), while medium-sized establishments acquired 158 licenses and micro-enterprises received 15. Notably, only three licenses were granted to large establishments.

Geographically, the Riyadh Region emerged as the hub for industrial activity, securing 479 licenses. The Eastern Region followed with 340 licenses, while the Makkah Region obtained 269 licenses. The Qassim and Madinah regions accounted for 87 and 79 licenses, respectively.

The Ministry of Industry and Mineral Resources, through the National Industrial and Mining Information Center, regularly disseminates crucial industrial indicators, encompassing both the industrial and mining sectors. These indicators provide invaluable insights into the dynamics of the Kingdom's industrial landscape, highlighting trends and the impact of new investments.