Saudi Arabia’s Ministry of Industry and Mineral Resources issued 86 new industrial licenses in April worth SAR2.2 billion ($587 million). This brings the total number of executive industrial licenses issued in Saudi Arabia from the beginning of 2024 until the end of April to 410.
Saudi Arabia’s growing industrial sector
A recent report from the ministry’s National Center for Industrial and Mining Information reveals that 67 factories began production in April with investments reaching SAR1.5 billion. The food production sector led with 12 new factories followed by 11 factories each for chemical products and rubber & plastics products.
The ministry’s report also revealed that 92.5 percent of the factories that started production in Saudi Arabia were national, with joint ventures accounting for 5.9 percent and foreign investments accounting for 1.49 percent. By April 2024, Saudi Arabia had 11,800 existing and under-construction factories with investments reaching over $373 billion, up from 10,800 in April 2023.
In addition, Saudi Arabia issued 17 industrial licenses for manufacturing formed metal products and nine licenses each for chemical products and rubber & plastics products in April.
Small establishments lead sector’s growth
In April 2024, Saudi Arabia issued 80.2 percent of the new industrial licenses to small establishments and 13.9 percent to medium-sized establishments. In addition, national factories accounted for 100 percent of the total license issuances.
The licenses were distributed across 10 administrative regions. Riyadh led the growth in April with 36 new factories, followed by Makkah with 22, and the Eastern Province with 17. Other regions, including Medina, Al-Qassim, Hail, Najran, Asir, Al-Jawf, and Tabuk, also received new licenses.
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