Saudi Gazette Report
RIYADH — Investments in Saudi Arabia’s industrial sector surged by 54%, reaching SR 1.5 trillion this year from SR 992 billion in 2019. This growth is attributed to the state’s decision to waive fees for expatriate workers in the industrial sector, a policy enacted in 2019 and extended until the end of 2025.
An analytical report from the Federation of Saudi Chambers’ economic-affairs department highlights this initiative’s positive impact. The report examines key indicators such as GDP contribution, the number of industrial establishments, investment volume, employment, non-oil exports, product quality, and foreign investment.
According to the report, the industrial sector’s GDP contribution rose to 14.7% in 2023, with its value increasing from SR 392 billion in 2019 to SR 592 billion. The number of industrial establishments grew by 55.6%, from 7,625 in 2019 to 11,868 by 2024, and foreign investments in the sector saw significant growth.
Foreign factories increased by 71.5%, reaching 1,067 this year from 662 in 2019. Foreign capital investments also rose by 116.2%, hitting SR 93 billion from SR 43 billion. By the first quarter of 2024, the industrial workforce numbered 1.2 million, including 358,000 Saudis, with industry localization reaching 28%.
Government incentives have boosted job creation for Saudis, with the industrial sector providing over 82,000 jobs between January 2023 and March 2024, accounting for 59% of all private-sector jobs created during this period.
Non-oil exports increased by 12%, reaching SR 208 billion in 2023, driven by market expansion and trade agreements. Local content in non-oil sectors hit SR 1,138 billion, and the fee waivers have improved product quality through modern technology adoption and innovation localization.
The quality boost has increased domestic demand for local products and certifications from the Saudi Standards, Metrology and Quality Organization, enhancing industrial exports. Overall, the fee waiver has benefited over 8,000 establishments at an estimated cost of SR 5 billion.