Saudi Arabia’s industrial sector has experienced significant growth, driven by the Vision 2030 initiative, with the number of industrial facilities increasing by 60 percent since the vision’s launch. According to the National Industrial Development and Logistics Program (NIDLP), the number of industrial establishments in the Kingdom rose from 7,206 in 2016 to 11,549 in 2023. This expansion underscores Saudi Arabia’s commitment to diversifying its economy and establishing itself as a global manufacturing hub.
Riyadh leads the Kingdom in industrial development, boasting 4,502 factories, followed by the Eastern Province with 2,618 facilities and Makkah with 2,209. Other regions, including Al-Qassim, Madinah, and Asir, also contribute significantly to the national industrial infrastructure, supporting the overall growth of the sector.
This expansion aligns with the objectives of the National Industrial Strategy, introduced by Crown Prince Mohammed bin Salman in October 2022. The strategy aims to increase the number of factories to approximately 36,000 by 2035, focusing on 12 key industrial sub-sectors. It also highlights more than 800 investment opportunities worth SR1 trillion ($266.4 billion), with the goal of tripling the industrial gross domestic product.
The NIDLP emphasized that these facilities are essential to advancing Vision 2030’s goals of economic diversification and sustainable development. In February 2023, the Ministry of Industry and Mineral Resources reported a 10 percent annual increase in operational factories, representing a total investment of around SR1.5 trillion.
The ministry also issued 1,379 industrial licenses in 2023, with investments exceeding SR81 billion, while 1,058 factories commenced production during the same period, backed by financial commitments totaling SR45 billion. The new permits covered 25 industrial activities, with food processing leading at 244 licenses, followed by non-metallic mineral goods manufacturing with 176, and formed metal products with 165.
Since the launch of the NIDLP in 2019, Saudi Arabia has solidified its position as a key player in energy, mining, industry, and logistics, contributing to the Kingdom’s broader economic diversification and sustainable development goals. The program leverages Saudi Arabia’s strategic location as a global trade hub and its abundant natural resources to promote further industrial growth and logistical efficiency, paving the way for a prosperous future for the nation’s younger generations.
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