Skip to content Skip to Search
Skip navigation

Food sector dominates new factories approved in Saudi

Saudi's Almarai rolled out multiple new products in 2023 with plans to enter the seafood and frozen bakery business Creative Commons
Saudi's Almarai rolled out multiple new products in 2023 with plans to enter the seafood and frozen bakery business
  • 9 new licences approved for food manufacturing in April
  • 10,873 factories built or under construction in the kingdom
  • Non-oil sales growth was strongest for nearly nine years

Saudi Arabia approved licences for 53 new factories with total investment capital of more than $5 billion in April.

The majority of new licences came from the food products industry, according to the latest monthly figures from the Ministry of Industry and Mineral Resources, with nine new licenses approved.

Other major sectors included non-metallic minerals (eight licences), and four licences each for formed metals, rubber products and water treatment.

The new factories are estimated to create over 1,300 new jobs when fully operational, the ministry said.

A total of 14 new factories, with an investment value of SAR155 million ($41 million), started production in April. This created 394 new jobs and brought the total number of factories built or under construction in the kingdom to 10,873.

Two-thirds of the factory licences awarded in April were from Saudi-based local investors, while the remaining third were from foreign enterprises or joint ventures.

The Riyad Bank Saudi Arabia Purchasing Managers’ Index (PMI) reported this week that new orders across the kingdom’s non-oil sector rose at “accelerated, multi-year record rates”.

Data showed that output in the kingdom increased at the steepest rate since March 2015, while sales growth was the strongest for nearly nine years.

“Heightened demand and improved market conditions have accelerated employment growth to the highest level since August 2015 as well as purchasing activities,” Naif Al-Ghaith, chief economist at Riyad Bank, said.

Latest figures from the General Authority for Statistics also showed Saudi Arabia’s Industrial Production Index increased by 3.2 percent in April compared to a year earlier, boosted by a 10.5 percent jump in manufacturing activity.

Latest articles

Opec Secretary General Haitham Al Ghais says peak oil 'is not on the horizon'

Upstream oil and gas ‘needs more annual investment’

Annual capital expenditure for exploration and production in the upstream sector of the oil industry needs to increase by 22 percent by 2030 because of growing demand and cost inflation, experts say. A cumulative $4.3 trillion needs to be invested between 2025 and 2030, according to a report by the International Energy Forum (IEF) and […]

Rothschild Saudi

Edmond de Rothschild to run funding vehicle for Saudi projects

The Edmond de Rothschild Group is establishing a funding vehicle for infrastructure projects in Saudi Arabia along with the local firm SNB Capital, as part of a deal in which the Swiss investment bank will set up offices in the country.  Saudi Arabia’s massive economic diversification programme has run into financial obstacles as it faces […]

Turkey foreign property sales

Foreigners turning back on Turkish real estate

Foreign buyers are increasingly shunning the Turkish property market, wary of high prices, the expensive cost of living and a less welcoming environment for overseas real estate investors. There were only 2,064 residential units sold to foreign buyers in May, 35 percent down on the same month last year, data issued by the state statistics […]

2KEY8G1 Emirates Airline Airbus A380 aircraft landing. Aerial view of Emirates Airlines A380-800 airplane. An Emirates plane coming in to land at LAX; a spokesperson for Emirates said the contraventions were for safety reasons

US fines Emirates for operating in prohibited airspace

Emirates has been fined $1.5 million by the US Transportation Department for operating flights carrying JetBlue Airways’ JBLU.O designator code in prohibited airspace. The transportation department said that between December 2021 and August 2022, Emirates operated a significant number of flights carrying the JetBlue Airways code between the United Arab Emirates and the United States […]