Saudi Arabia’s industrial sector has attracted foreign and joint investments totaling more than 542 billion Saudi riyals ($144.53 billion) as part of the kingdom’s efforts to diversify its economy away from oil and attract more investments. These investments account for 37% of the total investments in the industrial sector and 17% of the existing factories in the country as of May this year, according to a report by the Saudi Press Agency.
The report, citing data from the Ministry of Industry and Mineral Resources, reveals that there are currently 930 factories with foreign investments, amounting to over 71 billion riyals. Additionally, there are 924 factories with joint investments, totaling more than 470 billion riyals.
In October, the Saudi government unveiled a National Industry Strategy aimed at boosting the value of the kingdom’s industrial exports to approximately $149 billion by 2030. As part of this strategy, 800 investment opportunities worth $266.2 billion have been identified to generate sustainable economic returns for Saudi Arabia in the coming years.
The total number of factories in Saudi Arabia’s industrial sector has now reached 10,910, with investments exceeding 1.455 trillion riyals, according to the SPA report.
Saudi Arabia’s economy demonstrated resilience and growth, expanding by 3.9% in the first quarter of this year compared to the same period last year. The non-oil sector was a significant contributor to this growth, expanding by 5.8% during the first three months of 2023, while oil activities saw a 1.3% increase, according to initial estimates released by Gastat.
In 2022, Saudi Arabia achieved the highest annual growth rate among the world’s 20 largest economies, recording an expansion of 8.7% due to higher oil prices and the strong performance of its non-oil private sector, as reported by the Organisation for Economic Co-operation and Development (OECD).
These developments demonstrate Saudi Arabia’s commitment to diversifying its economy and attracting foreign investments, signaling promising opportunities for industrial development and sustained economic growth in the country.