Industrial cities in Saudi Arabia's Qassim region hit 77% occupancy rate, official reveals
RIYADH: Industrial cities in Saudi Arabia's Qassim region are performing at occupancy rates of up to 77 percent, with 158 factories currently in operation, reflecting strong growth and a supportive business environment, according to a top official.
During a meeting organized by the the area's chamber of commerce, the Kingdom's Deputy Minister of Industry and Mineral Resources for Industrial Affairs Khalil Ibrahim bin Salamah explained that the value of industrial investments in the region during the first quarter of 2025 reached SR700 million ($186 million), with the city of Buraydah accounting for the largest share, the Saudi Press Agency reported.
This reflects the Kingdom's National Industrial Strategy, introduced in October 2022, which aims to increase the number of factories in the Kingdom to approximately 36,000 by 2035. This approach is designed to attract investment, scale up local production, and strengthen non-oil exports.
The SPA statement said: 'The meeting aimed to introduce the most prominent ministerial services and programs and discuss the sector's aspirations to achieve continued growth in development and investment.'
It added: 'The meeting addressed several topics related to the industrial sector, including standard incentives for the industrial sector, which enhance the competitive sustainability of the industrial sector in the Kingdom.'
The statement further revealed that the assembly addressed the environmental impact of industrial facilities and presented solutions to help improve efficiency and quality.
It also included a review and introduction to the Factories of the Future Program, as well as the process of converting these facilities to adopt modern manufacturing practices, automation, and digitization, which directly contribute to the development of the industrial sector in the Kingdom.
The gathering also saw a review of the Industrial Links Program, which connects manufacturers with major projects to achieve the goals of the national strategy for increasing local content.
The Qassim region experienced 25 percent growth in its business sector over the past seven years, reflecting increased economic activity and contributing to the Kingdom's goal of balanced development, the Ministry of Commerce reported in a post on its official X account in May.
The number of commercial records in the central region rose from 68,000 in 2018 to 85,000 by the end of the first quarter of this year, the ministry said at the time.
In 2024, Qassim Municipality announced that the region had successfully concluded 711 investment contracts, with a total value exceeding SR740 million. The municipality also provided 1050 diverse investment opportunities aimed at supporting economic development and enhancing the quality of life in the region.
The increase comes as the Kingdom pushes ahead with its economic diversification strategy, aiming to increase the private sector's share of the gross domestic product from 40 percent to 65 percent by 2030.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Argaam
29 minutes ago
- Argaam
Talal Al-Marri named CEO of Expo 2030 Riyadh
Expo 2030 Riyadh Co. (ERC), which is wholly owned by the Public Investment Fund (PIF), appointed Talal bin Hussein Al-Mari as Chief Executive Officer. Al-Mari will be responsible for managing the company overseeing the development and operation of Expo 2030 Riyadh. Al-Mari has held several leadership positions at Aramco, most notably as President and CEO of Aramco Europe, Senior VP of Community Services, and Senior VP of Industrial Services. During his tenure as President and CEO of Aramco Europe, Al-Mari oversaw the company's investments in Europe and led various strategic initiatives that supported the company's digital transformation efforts. He also undertook several international assignments in London and Seoul while serving in this role. Earlier today, PIF announced the launch of Expo 2030 Riyadh Co., a wholly owned subsidiary tasked with developing and operating the Expo 2030 Riyadh site's facilities — being the first-of-its-kind event to be hosted in Saudi Arabia. ERC will oversee the construction and long-term investment of the Expo's facilities.
Argaam
42 minutes ago
- Argaam
SIIG deposits post-capital cut fractional shares proceeds
Saudi Industrial Investment Group (SIIG) deposited proceeds from selling fractional shares resulting from its recent capital reduction in the accounts of eligible shareholders. In a statement to Tadawul today, June 19, the company said the fractional shares sale ended on June 1. As many as 24,427 shares were sold at a total of SAR 371,576, at an average price of SAR 15.21 apiece. According to Argaam data, SIIG shareholders recently approved a 10% capital cut to SAR 6.79 billion from SAR 7.54 billion at an extraordinary general meeting (EGM), citing excess capital. Shareholders will be compensated for the cancelled shares through a cash distribution of SAR 754.8 million (SAR 10 apiece).
Argaam
42 minutes ago
- Argaam
Tharwah amends payment terms for Amjad Watan acquisition
Altharwah Albashariyyah Co. (Tharwah) agreed to amend the share settlement terms under its deal to acquire 100% of Amjad Watan for Exhibitions & Conferences Management Co., according to a statement on Tadawul today, June 19. Under the amended terms, SAR 7 million will be paid in cash at deal closure or earlier, provided its completion at Tharwah's discretion. An additional SAR 5 million will be settled in the form of 95,804 ordinary shares in Tharwah (second tranche), issued as the company sees fit. The remaining SAR 28 million in acquisition value will be converted into Tharwah shares, pending regulatory approvals. These will be performance-based shares, earned over three years if revenue targets are met. The seller may receive these performance-based shares and the other shares entailed under the second tranche as rewards, depending on the seller's contributions and performance during the agreed service period. Shares may be granted through employee incentive schemes or other mechanisms. The total number of conditional shares tied to the remaining SAR 28 million has been set at 536,501 shares. Tharwah said it will announce any other material developments in due course. On April 17, Tharwah signed a binding agreement to fully acquire Amjad Watan, according to Argaam 's data. The deal entails a mix of cash payments and newly-issued shares by increasing Tharwah's capital, pending approvals from the Capital Market Authority (CMA) and the deciding extraordinary general assembly.
