Saudi Arabia has witnessed a significant increase in industrial licenses granted in the third quarter, with a surge of 83.9% compared to the same period last year, according to data from the Investment Ministry. This growth is attributed to the government’s efforts to enhance the competitiveness of the industrial environment, promote local content, and support domestically manufactured products.
The rise in capital for newly licensed factories also contributed to this increase, with a 1.5% growth. These initiatives are part of the National Industrial Development and Logistics Program and the Saudi Export Development Authority’s “Made in Saudi” program, which aims to promote local talent, innovation, and attract investments.
Aligned with Vision 2030, the initiative aims to diversify and sustain the Saudi economy, with a target of increasing non-oil exports to 50% of the non-oil gross domestic product by 2030. The Ministry issued a total of 2,202 licenses in the third quarter, including those granted as part of anti-concealment law enforcement, representing an 89% increase compared to the same period last year.
The construction sector led in investment licenses, with a 170% increase, followed by the manufacturing sector with a 94% increase. Professional, scientific, and technical activities saw a boost of 93%, while the information and communication sector obtained 115% more licenses. Notably, public administration and support services witnessed the most substantial growth in investment licenses, with a remarkable increase of 294.3%. The electricity, gas, steam, and air conditioning sector also experienced a rise of 175%.
In terms of investments, the third quarter saw 19 deals, with the education & training and culture sectors attracting the highest investor interest. China led in the origin of investments, with five deals, followed by Japan with three deals in Saudi Arabia. The remaining deals were distributed among 12 other countries.