Saudi industrial sector attracts $18.7bn in 7 months: Minister
The Saudi industrial sector attracted investments worth SR70 billion ($18.7 billion) from the beginning of 2021 till the end of July, Bandar Alkhorayef, minister of industry and mineral resources, said in a tweet.
“This leap is a translation of the support of our wise leadership and the industrial transformation that the Kingdom is witnessing, a golden age for industry, and an important indicator that reflects the attractiveness of the sector and its ability to attract capital,” the minister said.
A separate statement issued by the ministry said it approved the establishment of 48 new factories in July with a total investment of SR50 billion while the number of new industrial units that became operational reached 78.
The number of Saudis and expatriates working in the Kingdom’s industrial sector jumped by 1,101 and 1,830 respectively in July 2021.
The total number of industrial units in the Kingdom now stands at 10,166 with investments over SR1.3 trillion.
The Kingdom’s industrial economy covers 16 strategic sectors and is distributed over 13 administrative regions throughout the country, according to the report from the ministry’s National Center for Industrial and Mining Information.
Riyadh is home to the largest number of factors, at 4,079. The Eastern Province recorded 2,206 factories, Makkah has 1,911, and Al-Qassim region 428, followed by Al Madinah with 416 factories, the report showed.
The strategic sectors in the Kingdom include metals, food and plastic products, machinery and equipment, the specialized chemical industry, basic and medium chemicals, automobile factories, refined oil products, pharmaceuticals, medical supplies, renewable energy, marine and aviation, military, and building materials.
Building materials dominate the Kingdom’s industrial sector with 2,016 factories, followed by 1,705 working in the production of metals, 1,445 food factories, 1,317 for plastic and rubber products and 571 machinery and equipment factories.
Saudi Arabia’s Industrial Production Index (IPI) rose by 11.9 percent in June 2021 from a year earlier and by 3.6 percent from May, official data showed.
“Development of this sector is one of the pillars of Saudi Vision 2030 to create a competitive economy and sustainable development,” Dr. Osama Ghanem Al-Obaidy, economic adviser and international economic law expert, told Arab News.
“Saudi Arabia aims at developing promising industries in food, medicine, and medical supplies, as well as military industries, and industries relating to oil, gas, and petrochemicals, mining, and chemicals,” he said.
The Kingdom is anticipating increased industrial activity in coming years through advanced technology.
Advanced technology from the Fourth Industrial Revolution is expected to generate around SR1 trillion for the Saudi economy in new revenue streams, a senior Saudi official told a conference in Riyadh last month.
This leap is a translation of the support of our wise leadership and the industrial transformation that the Kingdom is witnessing, a golden age for industry.
Minister of industry and mineral resources