Ministry of Industry licenses 745 new factories worth SAR 75 bln in Q3 2021

Logo of Ministry of Industry and Mineral Resources

Saudi Arabia licensed 745 new factories worth SAR 75 billion in the third quarter of 2021, recent data issued by Ministry of Industry and Mineral Resources showed.

A total of 577 factories started production during the same period, and the sector was able to provide more than 47,000 jobs, with a localization rate of nearly 40%, said the Ministry.

A report issued by the National Center for Industrial and Mining Information showed that the total number of existing factories in the Kingdom until the end of September reached 10,192 with a total investment of about SAR 1.33 trillion, topped by factories operating in the non-ferrous metals industry, with 2,000 factories, then rubber and plastics factories with 1,324, then factories operating in the manufacture of metal casting with 1,198.

The report revealed that during September, the Ministry of Industry and Mineral Resources issued 76 new industrial licenses with an investment size of about SAR 1 billion, while about 104 factories began production during the same month, with investments exceeding SAR 51 billion.

The report indicated that the industrial sector created 6,203 jobs, including 1,120 for Saudis during September.

Small factories accounted for 88% of the number of new industrial licenses last month, as well as 69% of the factories that started production. 88% of the new licenses and 84% of the number of factories that started production were national investments, according to the report.

The activity of manufacturing rubber and plastics products accounted for the largest number of new industrial licenses in September, with 12 factories. It was followed by metals manufacturing activity with 11 factories. Meanwhile, Riyadh region took the largest share of the number of new licenses with 30 factories, followed by the Eastern Province with 18 factories and Makkah region with 13 factories, showed the report.