The industrial landscape in Saudi Arabia has displayed a promising uptick, with investment levels experiencing a 1.5% quarter-over-quarter increase, reaching an estimated SAR 1.5 trillion at the conclusion of Q3 2023.
This surge in investment marks a significant rise from the SAR 1.4 trillion recorded at the end of the second quarter of 2023, illustrating a robust 9.3% year-on-year growth from the SAR 1.3 trillion reported in the same period the preceding year.
Breaking down the investments by scale, the lion’s share has been allocated to large-scale operations, which have amassed SAR 975.767 billion, making up 65.1% of the overall investment pie. Medium-scale enterprises have attracted SAR 390.060 billion, equivalent to 26% of total investments, while small-scale ventures have garnered SAR 132.951 billion, claiming 8.9% of the share.
Domestic investments have emerged as the frontrunners by the end of Q3 2023, commanding an investment volume of SAR 938.133 billion, which represents a substantial 62.6%. This capital injection has supported 9,324 operational factories, amounting to 82.7% of the total factory count.
Joint ventures have taken the runner-up spot, with an investment influx of SAR 486.961 billion, constituting 32.5% of the total investments, alongside 941 operational factories, which account for 8.3% of the total factory numbers. Foreign investments, while smaller in volume at SAR 73.684 billion, still play a notable role by contributing to 4.9% of the total investment and supporting 1,008 factories, equating to 8.9% of the total.
The industrial sector also saw an increase in the total number of factories, with a rise of 2.6% quarterly and 5.1% annually, culminating in a total of 11,273 factories. The workforce has concurrently expanded, reaching 757,429 employees and showcasing growth rates of 2.9% quarterly and 11.6% annually.
Geographically, the Eastern Region has become the investment epicenter, commanding 41.2% of the total investment volume with a contribution of SAR 617.191 billion. The Riyadh Region, however, boasts the highest concentration of factories, with 4,389 factories, which represents 38.9% of the overall factory count. Riyadh also leads in employment, with 282,702 workers, making up 37.3% of the total industrial workforce.