Saudi Arabia licenses 118 new factories
MEDICAL, PLASTICS AND FOOD SECTORS SURGE ON VIRUS
The ministry said the net number of existing industrial plants under construction up to the end of June 2020 amounted to 9,211.
Saudi Arabia is witnessing a significant development and economic transformation, and the development of the industrial sector has become one of the priorities the government seeks to achieve, Saudi media reported experts as saying.
New data issued by the Ministry of Industry and Mineral Resources revealed the number of new licences for factories in June 2020 was 118, with a capital of 2.18 billion riyals (Dh2.13 billion), the experts said.
Incentives to industry
Ebrahim Al Babtain, deputy head of the National Committee for Exports in the Council of Chambers, said, “With the relaunch of the Ministry of Industry and Mineral Resources, at the beginning of 2020, growth indicators showed more factories were set up and Saudis were employed in production lines, quality, safety and other sectors of industrial businesses.
The ministry said the net number of existing industrial plants under construction up to the end of June 2020 amounted to 9,211. The number of Saudi workers in the industrial sector increased during the month of June by 2,516 citizens, compared to a decrease in the number of expatriate workers by 519 workers.
“This growth is attributed to providing incentives to factories and facilitating the procedures and supporting factories, including offering land and funding, and the impact of the coronavirus pandemic, which made factory owners and investors think outside the box,” Al Babtain said.
Al Babtain stressed that the industries of medical and plastic products and the food industry have boomed significantly amid a race to cover the Kingdom’s demand during the Covid-19 crisis, and this was reflected in the localisation of jobs.
He added the initiatives of the government to support the salaries of Saudis have reflected positively by significantly reducing the burden on the private sector.
Al Babtain said the investors’ appetite opened up after the raising of customs duties on some commodities, as it would now be cheaper for companies to set up production in the Kingdom.
FDI in manufacturing
Al Babtain said that the foreign direct investments in the Kingdom is eight per cent, and mixed investments amount to eight per cent, while the total investments in the industry exceeds one trillion riyals.
Economic analyst Abdullah Baeshen said, “Saudi Arabia has 10,000 large, medium and small factories. In terms of foreign investments, the Kingdom is attractive in terms of geographical location and the availability of energy, natural resources and government support, and improved regulations.