The number of factories and industrial facilities in Saudi Arabia has seen a significant increase since the launch of Vision 2030, rising 60 percent from 7,206 in 2016 to 11,549 in 2023.
Under Vision 2030, Saudi Arabia seeks to make the industrial sector one of the economy’s main pillars. Therefore, it launched the National Industrial Strategy in 2022 to raise the number of factories across the country 3.5 fold to 36,000 factories by 2035.
Saudi Arabia’s industrial strategy seeks to transform the country into a leading industrial hub, among the top 15 globally, by 2035. It targets building a flexible national industrial economy, transforming Saudi Arabia into an integrated regional industrial center to meet the rising demand, and achieving global leadership in the production of specific commodities.
The rise in the number of factories across the Kingdom supports the strategy’s goal of raising the sector’s GDP from $88 billion in 2020 to $223 billion in 2035.
Riyadh home to 4,502 factories
In a recent statement, the National Industrial Development and Logistics Program (NIDLP) revealed that Riyadh topped the list of administrative regions for industrial facilities in 2023 with 4,502 factories.
In second place came Saudi Arabia’s Eastern Province with 2,618 factories, while the Makkah region is home to 2,209 factories. Al-Qassim ranked fourth with 546 factories, followed by Madinah with 526 factories, Asir region with 401 factories, Jazan with 201 factories, Hail with 144 factories, and Tabuk with 118 factories.
Al-Jouf is home to 88 factories, while the Najran region has 88 factories, the Northern Borders Region has 57 factories, and Al-Baha has 51 factories.
Industrial investments surge
Saudi Arabia’s Ministry of Industry and Mineral Resources also revealed that the number of factories last year rose 10 percent to 11,549, with total investments of around $400 billion, compared to 10,518 factories in 2022. This progress marks a significant step towards the Kingdom’s goal of raising industrial investments to 800 projects worth SAR1 trillion.
The number of industrial licenses issued last year reached 1,379, with investments reaching over $21.6 billion, while production began in 1,058 factories in 2023 with investments amounting to $12 billion.
To support the growth of the industrial sector, Saudi Arabia’s National Industrial Strategy seeks to raise the localization rate from 41 percent in 2020 to 65 percent in 2035. Moreover, it aims to raise the number of jobs in the sector by four-fold until 2035.
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