Saudi Arabia posts 66.7% rise in industrial licenses in February
JEDDAH: Saudi Arabia issued 105 new industrial licenses in February, marking a 66.7 percent increase compared to January, supporting the Kingdom's drive for economic growth and diversification.
A total of 113 factories also commenced production during the second month of the year, representing a 9.7 percent increase in comparison with the previous month, according to a statement issued by the Ministry of Industry and Mineral Resources.
According to a report from the ministry's National Industrial and Mining Information Center, the new licenses represent investments exceeding SR1.02 billion ($272 million) and are expected to create 1,504 jobs.
These developments are part of a broader trend in the sector. An official study revealed that 1,346 new industrial permits were issued in the first quarter of 2024, paving the way for over 44,000 new job opportunities and attracting investments surpassing SR50 billion ($13.3 billion).
They also align with Saudi Arabia's National Industrial Strategy, unveiled by Crown Prince Mohammed bin Salman in October 2022, which seeks to accelerate sector growth and raise the number of factories across the Kingdom to approximately 36,000 by 2035.
The strategy targets 12 sub-sectors and outlines over 800 investment opportunities, valued at SR1 trillion, with the goal of tripling the nation's industrial gross domestic product.
The issuance of permits also correlates with the Kingdom's National Industrial Development and Logistics Program, launched in 2019, to support the industrial sector and drive sustainable development.
The ministry added in its statement that factories entering the production phase attracted investments totaling SR900 million and generated 4,114 new jobs, underscoring the continued growth and expansion of the country's industrial base as these establishments reach full operational capacity.
Saudi Arabia's Industrial Production Index recorded a 1.3 percent year-on-year increase in January, driven by sustained growth in manufacturing and waste management, according to the General Authority for Statistics. Monthly, the index remained steady at 103.9, unchanged from December.
The manufacturing sub-index posted a 4 percent annual rise, supported by a 4.3 percent increase in the production of coke and refined petroleum products, as well as a 4.2 percent uptick in chemicals and chemical products.
The report, which monitors key industrial indicators, also revealed that investments linked to newly issued industrial licenses reached SR1.197 billion, with the associated projects expected to create more than 2,500 job opportunities across the Kingdom.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Saudi Gazette
8 hours ago
- Saudi Gazette
GASTAT: Saudi Arabia's imports rise to SR74 billion in March
Saudi Gazette report RIYADH — Saudi Arabia's commodity imports rose slightly to SR74 billion in March 2025, a 0.1 percent increase compared to the same period in 2024. However, commodity imports increased by approximately SR 1.65 billion, a two percent increase, according to data released by the General Authority for Statistics (GASTAT). Machinery, mechanical equipment, electrical equipment, and their parts accounted for 26 percent of the Kingdom's total imports in March, with a value of SR19.3 billion. Vehicles, aircraft, ships, and transportation equipment accounted for approximately 15 percent. China accounted for 25 percent of Saudi Arabia's total imports in March 2025, with a value of SR 18.7 billion, followed by the United States with SR 5.8 billion, and the UAE with SR 4.4 billion. The top 10 countries from which imports accounted for about 65 percent of total imports, equivalent to SR48.1 billion. In its recently released monthly report, the GASTAT announced a 2.3 percent increase in the consumer price index (CPI) for April 2025 compared to the same month in 2024. The authority attributed this annual price increase to the rise in housing, water, electricity, gas, and other fuels, which recorded the highest increase of 6.8 percent. A 2.2 percent rise in food and beverage prices and a 3.5 percent rise in the prices of various personal goods and services contributed to this inflationary wave. Some major categories recorded an annual decline in prices, with furniture and home furnishings prices declining by 1.8 percent. Communications prices fell by 1.5 percent, clothing and footwear prices declined by 1.2 percent, and transportation by 1.0 percent. Health, recreation, and culture prices also saw slight declines of 0.2 percent and 0.7 percent respectively, reflecting relative stability in the costs of these services and products. In contrast, the tobacco sector recorded a slight increase of 0.1 percent.
Arab News
10 hours ago
- Arab News
Italy-KSA: A strategic partnership where heritage meets modernity
As Italy on Monday celebrates the 79th anniversary of the foundation of the republic, which brought democracy, freedom and economic development after the horrors of two world wars, I would like to take a moment to look into the remarkable progress already achieved in the first part of this year in the bilateral relationship between Italy and Saudi Arabia. In 2025, our two countries achieved a milestone in their relationship by upgrading it to the level of a strategic partnership. The historic visit to the Kingdom of Italian Prime Minister Giorgia Meloni and her meeting with Crown Prince Mohammed bin Salman at the end of January ushered in a new phase for our two countries. As ambassador, I had the privilege to prepare the visit and assist my prime minister during this landmark mission. In the Royal Camp of AlUla, in a traditional Saudi desert tent, I witnessed two leaders discussing extensively and with passion not only the present but also, most notably, the future. Our diplomatic relationship is an old and very solid one, as it dates back to 1932. But it is also projected into the future, as our two leaders fully understood: Italy and Saudi Arabia have much to gain from seizing common opportunities and addressing common challenges together. First, let me dwell on the people-to-people relations, which are the basis for a stronger and more mature strategic partnership. The Italian community in the Kingdom is growing, in parallel with the number of Saudi citizens visiting and doing business in Italy. We are indeed popular destinations for each other. I believe our peoples share many aspects of a broader Mediterranean heritage and therefore many values and habits are absolutely the same in the Kingdom and in Italy. This makes our citizens feel at home in both countries. Politically, our governments are fully committed to the principles of de-escalation, stabilization and development of the Middle East and North Africa region. We look through the same lens at regional dynamics and we are working more and more closely on different dossiers. Italy, which is at the center of the Mediterranean Sea and is a natural bridge between Europe and the Arab world, has a key interest in a prosperous region and fully supports the Kingdom's positive agenda in this regard. Italy and Saudi Arabia have much to gain from seizing common opportunities and challenges together. Carlo Baldocci The deep and accelerated reform process the Kingdom is undergoing also has the potential to have a positive effect on the whole region, prioritizing integration and development. Our economies are complementary and Italy is very well placed to continue to contribute to the implementation of Vision 2030, which is now very familiar to Italian stakeholders and public opinion. We will continue to work with our Saudi counterparts with the spirit of partnership that is an integral part of the Italian DNA abroad. We support the Kingdom in achieving its objectives, through joint ventures and joint industrial policies. This is the key ingredient for a sustainable partnership, as it will enable our two countries to grow together and get stronger together, through exchanges of know-how, technology transfer and the cross-fertilization of our respective capacities. During the January visit of PM Meloni, a high-level roundtable took place in the iconic location of Maraya. With the marvels of AlUla as a backdrop, we celebrated Saudi heritage — a powerful message on how the Kingdom's transformation is deeply anchored in its rich heritage and identity. The beautiful and Italian-designed Maraya concert hall reminded us that our tradition is inevitably a work in progress, which can benefit from our cooperation and is enriched every day by both creativity and technology. Key representatives from both countries were present in Maraya and signed a significant number of agreements, not only business deals but also very relevant initiatives in the arts, with archeology, restoration and design as the map of our desire to share and experiment with our capacities. That event and that spirit, I believe, symbolize very well the essence of our strategic partnership, where heritage meets modernity and where our respective roots will guide us into a more prosperous future.
Arab News
16 hours ago
- Arab News
New center positions Saudi Arabia for advanced manufacturing leadership
RIYADH: The global industrial sector is witnessing a radical transformation toward adopting Fourth Industrial Revolution technologies, prompting countries to reconsider traditional manufacturing methods and adopt smart solutions that include automation, artificial intelligence, robotics, and data-driven systems in order to improve production efficiency and reduce operational costs. According to the Saudi Press Agency, the Kingdom is not only keeping pace with the global industrial transformation but also aims to lead it through strategic initiatives and specialized programs that promote smart industry practices and accelerate the adoption of advanced manufacturing technologies. This will enhance the competitiveness of Saudi Arabia's industrial sector both regionally and globally, aligning with the goals of Vision 2030 and the National Industrial Strategy to position the Kingdom as a leading industrial power, one that supports global supply chains and exports high-tech products globally. The Ministry of Industry and Mineral Resources is undertaking this ambitious transformation by establishing an integrated and comprehensive national system to enhance advanced manufacturing, according to SPA. It has launched the Advanced Manufacturing and Production Center, which brings together all programs and initiatives that enable the adoption of modern manufacturing technologies and stimulate smart and innovative industrial solutions. This initiative is in cooperation with various government entities related to the technology, research, and innovation sectors and in partnership with several global leaders in industrial technology. The efforts under the Advanced Manufacturing and Production Center include the Future Factories Program Initiative, the Industrial Beacons Program, the Accelerated Manufacturing Program, the Capability Centers Network, and the Operational Excellence Program, reported SPA. These initiatives collectively support the center's vision of becoming a unified national platform that accelerates the adoption of advanced manufacturing technologies. They also serve as a bridge to help local manufacturers access cutting-edge solutions that improve efficiency, enhance quality, and reduce costs across the industrial sector. The center aims to boost productivity and competitiveness in the manufacturing sector by localizing advanced and sustainable technologies, creating an attractive environment for industrial investment, and supporting skill development through its Capability Centers Network. It also offers experiential learning opportunities and provides advisory services to help industrial establishments adopt advanced manufacturing practices. The efforts of the ministry are aligned with several government entities that support the center's vision and objectives. In 2022, the ministry launched the Future Factories initiative to support the smart transformation journey of industrial establishments, aiming to automate 4,000 Saudi factories and increase their production efficiency, reduce reliance on unskilled labor, and promote the adoption of advanced industrial solutions and practices. The initiative offers numerous incentives and enablers to support the digital transformation of national factories, including financing solutions, consulting services, and the development and qualification of human resources to leverage the latest manufacturing technologies. It also helps industrial establishments assess their technological maturity and develop transformation plans to adopt operational excellence practices and advanced manufacturing solutions, including AI, robotics, the Internet of Things, and big data analytics. To support industrial transformation in the Kingdom and achieve global leadership in adopting advanced manufacturing technologies, the ministry launched the Industrial Beacons program. This undertaking aims to enable leading Saudi factories to adopt Fourth Industrial Revolution technologies, thereby enhancing their production efficiency and qualifying them to receive international recognition within the Global Lighthouse Network, an affiliate of the World Economic Forum, by 2030. During the launch ceremony of the Advanced Manufacturing and Production Center, the Ministry announced 10 national industrial companies that committed to achieving the standards of the Industrial Beacons initiative. With the launch of the Advanced Manufacturing and Production Center and its targeted initiatives to promote advanced technologies and foster research and innovation in the industrial sector, the Kingdom signals that its ambitions extend beyond simply keeping pace with global industrial trends.
