Industrial activity in Saudi Arabia is on the rise as many private companies are pursuing manufacturing licenses to benefit from the Kingdom’s supportive policies to boost local production.
In April, the Ministry of Industry and Mineral Resources of Saudi Arabia granted 53 new industrial licenses, with a total investment volume of SR5.8 billion ($1.5 billion) spanning seven distinct industrial sectors. This comes after the issuance of 123 permits in March, with a combined investment value of SR3.09 billion.
In addition to the industrial licenses issued in April, 56 factories commenced operations during the same month.
The food production sector was a prominent applicant, obtaining nine licenses, followed by producers of shaped metal products and other non-ferrous metal products, receiving eight licenses each.
Furthermore, other sectors, including base metals, paper, related products, rubber and plastic products, and water treatment and supply, obtained four licenses each.
In April, an additional 14 factories began their production in Saudi Arabia, with a combined investment of SR155 million. These new facilities encompassed rubber and plastic factories, paper, non-ferrous metals, wood, and shaped metal products facilities.
The National Industrial and Mining Information Center, a ministry subsidiary, released its latest report, indicating that most new industrial licenses issued in the Kingdom were for small-scale facilities, accounting for 94.34 percent of the total. Medium-sized facilities made up the remaining 5.66 percent.
Among the different types of investment, national factories secured the largest share of issued licenses, constituting 66.04 percent of the total, while foreign facilities accounted for 11.32 percent.
Joint venture facilities comprised 22.64 percent of the licenses issued during this period.
According to the report, the Ministry of Industry and Mineral Resources has issued 385 industrial licenses from the beginning of the current year until the end of April.
Currently, Saudi Arabia boasts 10,873 factories, including existing and under-construction facilities, with a significant investment of SR1.44 trillion.
This reflects a notable increase in industrial activity on both a monthly and yearly basis. There were 10,825 factories in March, while in April 2022, the number was 10,561. National facilities took the lead among the factories initiating production, accounting for 85.71 percent of the total. Joint venture factories and foreign investment factories held a share of 7.14 percent each.
Additionally, the report highlights that the sector experienced adding 1,187 new employees in April.