Despite the economic crisis driven by the outbreak of the COVID-19 pandemic, Saudi Arabia’s industrial sector is racing to become a leading power with licensing of over a hundred new factories in the region and increasing importance of the local industrial sector.
According to the data issued by the Ministry of Industry and Mineral Resources, in 2021 January Saudi Arabia has licensed 115 new factories worth $430 million. During the period 66 new factories began production, making the number of existing and under-construction factories in the country to 9,783. The newly licensed factories created about 4099 new jobs.
“The Ministry of Industry and Mineral Resources, through this licensure, is implementing the national industrial development and logistics vision realization program, which aims to transform Saudi Arabia into a leading industrial power,” Dr. Osama Ghanem Al-Obaidy, economic adviser and international economic law expert, stated.
Mr. Al-Obaidy further added that with the establishment of new factories the country will be able to generate more employment opportunities for workers and it will help to improve the efficiency of the Saudi industrial sector.
“Development of this sector is one of the pillars of Saudi Vision 2030 to create a competitive economy and sustainable development. 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 as well as chemicals,” Mr. Al-Obaidy stated.
In line with the Vision 2030, which aims to diversify the Kingdom’s economy away from a dependency on hydrocarbon, the ministry is offering incentives to local and foreign investors to invest in the industrial sector to help increase the participation of small and medium-sized enterprises (SMEs), as well as to increase local Saudi production.
Dr. Majed Al-Hedayan, a financial analyst, stated that while some factories in other markets have closed or laid off staff, Saudi Arabia is continuing to build and develop, to invest material, financial and human resources in stimulating the private sector.