Saudi Arabia’s industrial sector has grown significantly, with a 60% increase in facilities since the launch of Vision 2030, the National Industrial Development and Logistics Program (NIDLP) revealed. The number of factories reached 11,549 in 2023, up from 7,206 in 2016. This growth stems from the Kingdom’s strong commitment to diversifying its economy and ensuring a sustainable future.
Driving Factors Behind Growth
The National Industrial Strategy, initiated by Crown Prince Mohammed bin Salman in October 2022, is a key driver of this expansion. The strategy aims to increase the number of factories to around 36,000 by 2035. The NIDLP supports these goals by advancing economic diversification and sustainable development.
Regional Breakdown of Industrial Growth
Riyadh leads the country with 4,502 factories, followed by the Eastern Province with 2,618, and Makkah with 2,209. Other regions like Al-Qassim and Madinah have also shown considerable growth, with 546 and 526 factories, respectively. The growth reflects the Kingdom’s broader goal to become a leading industrial power.
Investment and Licensing Surge
In 2023, the Ministry of Industry and Mineral Resources announced a 10% increase in the number of factories. Total investments reached approximately SR1.5 trillion ($400 billion), up from 2022. The issuance of 1,379 industrial licenses brought in over SR81 billion ($21.6 billion) in investments, while 1,058 factories began production with investments totalling SR45 billion ($12 billion).
Global Impact and Strategic Goals
Since the launch of the NIDLP in 2019, Saudi Arabia has solidified its position as a global player in energy, mining, industry, and logistics. The program’s success has contributed to economic diversification, job creation, and a sustainable future. Moreover, the Kingdom’s strategic location and rich natural resources further enhance its potential as an industrial and logistics hub.
