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RIYADH: Saudi Arabia issued 268 new industrial licenses in May, while 149 factories began production during the month, as the Kingdom continued to expand its industrial base.\u00a0<\/p>\n
Investments linked to the new licenses exceeded SR2.23 billion ($594.7 million), according to the Ministry of Industry and Mineral Resources\u2019 monthly report, prepared by the National Center for Industrial and Mining Information.\u00a0\u00a0<\/p>\n
The expansion forms part of the National Industrial Strategy, which identifies the industrial sector as a key component of Saudi Arabia\u2019s efforts to diversify its economy, strengthen local production capacity and develop industrial value chains.\u00a0<\/p>\n
The strategy targets increasing the number of factories in Saudi Arabia to about 36,000 by 2035. The target was reiterated by the Ministry of Industry and Mineral Resources at the Budget Forum in December.\u00a0<\/p>\n
In a post on X, ministry spokesperson Jarrah Al-Jarrah said the projects are expected to create more than 2,484 jobs across the Kingdom.\u00a0<\/p>\n
\u201cHe said the value of investments in factories that began production during May reached SR1.43 billion, with an estimated 2,410 new job opportunities,\u201d the post stated.\u00a0\u00a0<\/p>\n
It added: \u201cThis reflects the continued expansion of the Kingdom\u2019s industrial base and the increasing pace at which factories are entering actual operation.\u201d\u00a0<\/p>\n
Expansion of the industrial base\u00a0<\/strong><\/p>\n The May figures followed the issuance of 322 industrial licenses in April, when 188 factories began production.\u00a0<\/p>\n The April licenses represented investments exceeding SR12.33 billion, while factories entering production involved about SR2.01 billion in investments. The new licenses were expected to generate more than 2,977 jobs, while the factories entering production were expected to create around 3,606 jobs, according to the ministry figures.\u00a0<\/p>\n The number of industrial establishments reached 13,660 at the end of April, up from 12,289 a year earlier. The ministry\u2019s classification includes factories that have obtained industrial licenses and are either under construction or operational.\u00a0\u00a0<\/p>\n Saudi industrial activity has been supported by the Kingdom\u2019s economic diversification drive, which seeks to expand domestic manufacturing, localize supply chains and increase non-oil exports.\u00a0<\/p>\n Data from the General Authority for Statistics showed that manufacturing operating revenues rose 9.6 percent year on year in May. On a monthly basis, manufacturing operating revenues increased 0.6 percent from April.\u00a0<\/p>\n<\/div>\n