Saudi Arabia Boosts Manufacturing Sector with 118 New Industrial Licenses in February
RIYADH: Saudi Arabia is ramping up its manufacturing sector with the issuance of 118 new industrial licenses in February, marking a significant 72 percent increase compared to the previous year.
Sector Distribution
The permits were spread across five key sectors, with the food products production industry leading the way by securing 23 licenses from the Ministry of Industry and Mineral Resources.
The formed metal goods division followed closely with 18 licenses, while the non-metallic minerals and non-ferrous metal manufacturing field received 13 authorizations. The chemical production sector obtained 11 approvals, and the rubber and plastics industry saw nine new permits.
Investment and Growth
With the new licenses issued in February, the total number of industrial permits granted by the ministry in the first two months of the year reached 270. The investments associated with these new licenses amounted to a staggering SR1.88 billion ($500 million).
Currently, the Kingdom boasts a total of 11,757 factories in operation or under construction, with a combined funding amount of SR1.5 trillion.
Focus on Small and Medium Enterprises
Small establishments dominated the permit distribution, accounting for 89.8 percent of the total licenses issued, while medium enterprises followed at 9.32 percent.
Growth Indicators
As a sign of the sector’s evolution and increasing industrial investments, 93 factories began production in February, with an investment volume of SR1.51 billion.
The Ministry of Industry and Mineral Resources releases a monthly report to highlight the sector’s progression and key indicators in the Kingdom, reflecting the dynamic changes and growth in industrial activities.