Saudi Arabia issued 105 new industrial licenses in February 2025 which marks a 66.7% increase compared to January, supporting the Kingdom’s drive for economic growth and diversification. A total of 113 factories commenced production in February. This represents a 9.7% increase compared to January, according to the Ministry of Industry and Mineral Resources. The new licenses represent investments exceeding SR1.02 billion ($272 million). They are expected to create 1,504 jobs.
Broader Trends and National Strategy
These developments are part of a broader trend in the sector. An official study revealed that 1,346 new industrial permits were issued in the first quarter of 2024. This paves the way for over 44,000 new job opportunities and attracts investments surpassing SR50 billion ($13.3 billion).
They also align with Saudi Arabia’s National Industrial Strategy, unveiled by Crown Prince Mohammed bin Salman in October 2022. This strategy seeks to accelerate sector growth and raise the number of factories across the Kingdom to approximately 36,000 by 2035.
The strategy targets 12 sub-sectors and outlines over 800 investment opportunities, valued at SR1 trillion. The goal is to triple the nation’s industrial gross domestic product.
The issuance of permits also correlates with the Kingdom’s National Industrial Development and Logistics Program, launched in 2019. This program supports the industrial sector and drives sustainable development.
The ministry added that factories entering the production phase attracted investments totaling SR900 million. They generated 4,114 new jobs, underscoring the continued growth and expansion of the country’s industrial base as these establishments reach full operational capacity.
Industrial Production Index
Saudi Arabia’s Industrial Production Index recorded a 1.3% year-on-year increase in January. This was driven by sustained growth in manufacturing and waste management, according to the General Authority for Statistics (GASTAT). Monthly, the index remained steady at 103.9, unchanged from December.
The manufacturing sub-index posted a 4% annual rise, supported by a 4.3% increase in the production of coke and refined petroleum products, as well as a 4.2% uptick in chemicals and chemical products.
The report, which monitors key industrial indicators, also revealed that investments linked to newly issued industrial licenses reached SR1.197 billion. The associated projects are expected to create more than 2,500 job opportunities across the Kingdom.
