Investments in the Saudi industrial sector jumped 54 percent, hitting SR 1.5 trillion this year from SR 992 billion in 2019, thanks to the state’s waiver of fees for expatriate workers in the industrial sector. This was revealed in the report released by the economic-affairs department at the Federation of Saudi Chambers.
Key Findings of the Economic Report
Industrial Investments Surge to SR 1.5 Trillion
The report highlighted that the waiver of expat fees introduced in 2019, and extended until 2025, played a critical role in driving industrial investments. Total investments reached SR 1.5 trillion, up from SR 992 billion in 2019.
Expat Fee Waiver’s Positive Impact on GDP Contribution
The industrial sector’s contribution to Saudi Arabia's GDP rose to 14.7 percent in 2023, increasing from SR 392 billion in 2019 to SR 592 billion in 2023.
Growth in Industrial Establishments and Employment
The number of industrial establishments rose by 55.6 percent, growing from 7,625 in 2019 to 11,868 by 2024. Employment in the industrial sector reached 1.2 million workers by the end of Q1 2024, with 358,000 being Saudis, reflecting a localization rate of 28 percent.
Foreign Investment and Job Creation
Foreign Factories and Capital Investment Growth
Foreign investments surged with a 116.2 percent increase in capital investments, growing from SR 43 billion to SR 93 billion by 2024. The number of foreign factories increased by 71.5 percent, from 662 in 2019 to 1,067 in 2023.
Boost in Saudi Employment in Industrial Sector
The report also highlighted the role of the industrial sector in creating over 82,000 new jobs for Saudis between January 2023 and March 2024, accounting for 59 percent of all jobs created in the private sector during this period.
Rise in Non-Oil Exports and Product Quality
Increase in Non-Oil Exports Driven by Trade Agreements
Non-oil exports grew by 12 percent, reaching SR 208 billion in 2023, thanks to the expansion of Saudi products in international markets and the signing of new trade agreements.
Higher Demand for Saudi Quality Products
The adoption of modern technologies and the localization of innovations contributed to higher product quality, fueling domestic demand and boosting exports. Over 8,000 establishments benefited from the fee waiver, at an estimated cost of SR 5 billion.
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