Surging from factories to foundries, Saudi Arabia's industrial sector is powering the Kingdom's economic transformation, with its production index climbing 3.8% in 2023 as exports hit SAR 300 billion and foreign investment soared by 15%.
Key Takeaways
- In 2023, the Saudi industrial production index rose by 3.8% year-on-year, with the mining sector contributing 1.2 percentage points to the growth
- The manufacturing sector's output value reached SAR 450 billion in 2023, marking a 5.1% increase from 2022, primarily from chemicals and petrochemicals
- Non-oil industrial production grew by 4.7% in Q4 2023, with food products up 6.2% and plastics up 5.8%
- Foreign direct investment in industry reached SAR 120 billion by end-2023, up 15% YoY
- Total industrial investments amounted to SAR 850 billion in 2023
- Incentives under National Industrial Strategy disbursed SAR 25 billion in 2023
- Industrial employment totaled 1.2 million jobs in 2023, up 7.5% YoY
- Saudization rate in industry reached 28% in 2023
- Manufacturing sector employed 850,000 workers in 2023, +6.8%
- National Industrial Strategy launched 50 initiatives in 2023
- Industrial cities development program expanded to 35 cities by 2023
- Local content requirement set at 40% for industrial goods by 2023
- Industrial non-oil exports reached SAR 300 billion in 2023, up 14% YoY
- Petrochemical exports volume 25 million tons in 2023
- Plastics exports value SAR 80 billion in 2023, +16%
Saudi Arabia's industrial sector showed broad growth and increased investment in 2023.
Employment
- Industrial employment totaled 1.2 million jobs in 2023, up 7.5% YoY
- Saudization rate in industry reached 28% in 2023
- Manufacturing sector employed 850,000 workers in 2023, +6.8%
- Mining employment 150,000 in 2023, up 4.2%
- Female industrial workforce 120,000 in 2023, +15% YoY
- Vocational training graduates for industry: 50,000 in 2023
- SME industrial jobs 400,000 in 2023
- Expat workers in industry 750,000 in 2023, down 2%
- Youth employment in industry 250,000 aged 18-30 in 2023
- Petrochemical sector jobs 200,000 in 2023
- Construction materials employment 180,000 in 2023
- Food industry workforce 300,000 in 2023, +5%
- Metals sector employed 120,000 in 2023
- Plastics jobs 90,000 in 2023
- Pharmaceuticals employment 25,000 in 2023, +12%
- Automotive sector jobs 40,000 in 2023
- Electronics workforce 30,000 in 2023
- Textiles jobs 50,000 in 2023
- Furniture employment 60,000 in 2023
- Machinery sector 70,000 jobs in 2023
- Chemicals workforce 110,000 in 2023
- Fertilizers jobs 20,000 in 2023
- Glass sector 25,000 employees 2023
- Rubber employment 15,000 in 2023
- Leather jobs 10,000 in 2023
- Jewelry workforce 18,000 2023
- Average industrial wage SAR 8,500/month in 2023
- Industrial training programs enrolled 100,000 workers in 2023
Employment Interpretation
Saudi industry is sprinting ahead on a path paved with 50,000 fresh graduates and rising female participation, yet it’s carefully remodeling its workforce by gently reducing expat numbers while still relying on their 750,000-strong foundation to keep the gears turning.
Investments
- Foreign direct investment in industry reached SAR 120 billion by end-2023, up 15% YoY
- Total industrial investments amounted to SAR 850 billion in 2023
- Incentives under National Industrial Strategy disbursed SAR 25 billion in 2023
- Private sector industrial capital reached SAR 600 billion in 2023, +12%
- New industrial licenses issued: 2,800 in 2023, up 18%
- Venture capital in industrial tech: SAR 10 billion in 2023
- Public-private partnerships in industry valued at SAR 150 billion by 2023
- Financing for SMEs in industry: SAR 40 billion via Kafalah program in 2023
- Industrial zone investments totaled SAR 300 billion in 2023
- Petrochemical sector FDI inflows SAR 50 billion in 2023
- Mining investments hit SAR 200 billion cumulative by 2023
- Renewable energy manufacturing investments SAR 30 billion in 2023
- Automotive industry investments SAR 25 billion since 2020 to 2023
- Pharmaceutical investments SAR 15 billion in 2023
- Food processing FDI SAR 20 billion in 2023
- Plastics and packaging investments SAR 18 billion YoY 2023
- Metals sector capital expenditure SAR 40 billion in 2023
- Electronics manufacturing FDI SAR 12 billion 2023
- Cement industry expansions SAR 10 billion in 2023
- Textile investments SAR 8 billion, up 10% in 2023
- Furniture sector FDI SAR 6 billion 2023
- Machinery investments SAR 22 billion in 2023
- Chemicals FDI SAR 35 billion 2023
- Fertilizer plants investments SAR 14 billion 2023
- Glass manufacturing capital SAR 9 billion 2023
- Rubber investments SAR 7 billion 2023
- Leather FDI SAR 4 billion 2023
- Jewelry investments SAR 5 billion 2023
- Toys investments SAR 3 billion 2023
- Printing investments SAR 2.5 billion 2023
- Total industrial loans disbursed SAR 100 billion in 2023
Investments Interpretation
Saudi Arabia's industrial sector is open for business with gusto, as evidenced by an SAR 850 billion investment mountain, a flurry of new licenses, and a private sector now joyfully pouring capital into everything from petrochemicals to plastic toys.
Policies
- National Industrial Strategy launched 50 initiatives in 2023
- Industrial cities development program expanded to 35 cities by 2023
- Local content requirement set at 40% for industrial goods by 2023
- Green industry incentives provided to 500 firms in 2023
- SME industrial support program aided 10,000 enterprises in 2023
- Digital transformation grants SAR 5 billion for industry in 2023
- Export development program boosted non-oil exports by 12% in 2023
- Mining licensing reforms approved 200 new licenses in 2023
- Automotive assembly policy mandated 40% local content by 2023
- Pharmaceutical localization strategy achieved 35% local production 2023
- Food security industrial plan invested SAR 20 billion by 2023
- Plastics recycling initiative recycled 300,000 tons in 2023
- Metals downstream policy added 15 new projects in 2023
- Electronics manufacturing incentives attracted 20 firms 2023
- Cement capacity optimization policy saved SAR 2 billion 2023
- Textile revitalization program trained 20,000 workers 2023
- Furniture export promotion aided 500 SMEs in 2023
- Machinery localization reached 25% in 2023
- Chemicals safety regulations complied by 98% firms 2023
- Fertilizer export quotas set for 5 million tons in 2023
- Glass industry energy efficiency improved 15% by policy 2023
- Rubber downstream processing policy launched 10 plants 2023
- Leather value chain development funded SAR 1 billion 2023
- Jewelry hallmarks issued to 2,000 products 2023
Policies Interpretation
Saudi Arabia isn't just building factories anymore; it's meticulously constructing a whole new industrial ecosystem, seeding everything from sand and steel to software and smarts with a level of focus that suggests they've read the chapter on not putting all their eggs in one oil basket.
Production and Output
- In 2023, the Saudi industrial production index rose by 3.8% year-on-year, with the mining sector contributing 1.2 percentage points to the growth
- The manufacturing sector's output value reached SAR 450 billion in 2023, marking a 5.1% increase from 2022, primarily from chemicals and petrochemicals
- Non-oil industrial production grew by 4.7% in Q4 2023, with food products up 6.2% and plastics up 5.8%
- The cement production capacity in Saudi Arabia stood at 85 million tons annually as of 2023, with utilization rate at 72%
- Steel production totaled 9.2 million metric tons in 2023, a 2.8% increase driven by Hadeed's expansions
- Petrochemical production volume hit 28.5 million tons in 2023, up 4.3% from previous year
- Plastic products manufacturing output value was SAR 120 billion in 2023, growing 7.1%
- Pharmaceutical manufacturing production reached SAR 25 billion in 2023, with local content at 45%
- Food and beverage sector produced 15.4 million tons in 2023, up 3.9% YoY
- Metal products output increased by 5.5% to SAR 180 billion in 2023
- Rubber products production volume was 1.2 million tons in 2023, +6.4%
- Electrical equipment manufacturing output hit SAR 40 billion, up 8.2% in 2023
- Textile production value reached SAR 15 billion in 2023, with 12% growth
- Paper and wood products output grew 4.1% to SAR 22 billion in 2023
- Machinery manufacturing production was SAR 60 billion, +7.3% YoY in 2023
- Fertilizer production totaled 6.8 million tons in 2023, up 5.6%
- Aluminum production reached 2.1 million tons, with 3.2% growth in 2023
- Glass products output value SAR 18 billion, +4.9% in 2023
- Automotive parts production hit 250,000 units in 2023, up 10%
- Electronics manufacturing output SAR 12 billion, +9.5% YoY 2023
- Leather products production value SAR 8 billion, +3.7% in 2023
- Furniture manufacturing output SAR 30 billion, up 6.8% 2023
- Jewelry production value SAR 25 billion, +5.2% in 2023
- Toys and sports equipment output SAR 5 billion, +11% YoY 2023
- Printing and publishing production SAR 10 billion, +4.5% 2023
- Other manufacturing output grew 3.9% to SAR 50 billion in 2023
- Industrial production index for mining was 102.4 in 2023 (base 2021=100)
- Quarrying output value SAR 35 billion, up 2.8% in 2023
- Overall industrial capacity utilization rate averaged 78% in 2023
- Total industrial establishments numbered 12,500 in 2023, +4.2% from 2022
Production and Output Interpretation
While Saudi Arabia’s economy is often seen through an oil lens, these numbers show it's also busy baking more bread, bottling more chemicals, and building everything from steel to sneakers, proving its industrial ambitions are firmly cemented and currently running at a respectable 78% throttle.
Trade
- Industrial non-oil exports reached SAR 300 billion in 2023, up 14% YoY
- Petrochemical exports volume 25 million tons in 2023
- Plastics exports value SAR 80 billion in 2023, +16%
- Chemical products exports SAR 120 billion 2023
- Metals exports 7.5 million tons valued SAR 90 billion 2023
- Cement exports 12 million tons in 2023
- Food products exports SAR 40 billion, up 10% 2023
- Pharmaceuticals exports SAR 5 billion in 2023, +20%
- Automotive parts exports SAR 10 billion 2023
- Electronics exports SAR 8 billion, +25% YoY 2023
- Textiles exports SAR 15 billion in 2023
- Furniture exports SAR 12 billion 2023
- Machinery exports SAR 20 billion in 2023
- Fertilizers exports 5.2 million tons SAR 18 billion 2023
- Aluminum exports 1.8 million tons SAR 25 billion 2023
- Glass products exports SAR 6 billion 2023
- Rubber products exports SAR 4 billion 2023
- Leather goods exports SAR 3 billion 2023
- Jewelry exports SAR 7 billion in 2023
- Top export destination: UAE with SAR 50 billion industrial goods 2023
- EU imports of Saudi industrial goods SAR 30 billion 2023
- Imports of industrial machinery SAR 150 billion in 2023
- Trade balance for non-oil industry surplus SAR 180 billion 2023
- Number of industrial exporters 4,200 in 2023, up 8%
Trade Interpretation
Saudi Arabia is strategically assembling a formidable industrial portfolio, proving it’s far more than a petrochemical powerhouse as its factories now profitably export everything from car parts and pharmaceuticals to jewelry and furniture, all while running a massive trade surplus and steadily growing its army of exporters.
Sources & References
- Reference 1MIMmim.gov.saVisit source
- Reference 2VISION2030vision2030.gov.saVisit source
- Reference 3GASTATgastat.gov.saVisit source
- Reference 4SABSTEELsabsteel.comVisit source
- Reference 5SABICsabic.comVisit source
- Reference 6SFDAsfda.gov.saVisit source
- Reference 7MAADENmaaden.com.saVisit source
- Reference 8SAGIAsagia.gov.saVisit source
- Reference 9MONSHAATmonshaat.gov.saVisit source
- Reference 10PIFpif.gov.saVisit source
- Reference 11KAFALAHkafalah.gov.saVisit source
- Reference 12SAMAsama.gov.saVisit source
- Reference 13HRSDhrsd.gov.saVisit source
- Reference 14TVETtvet.gov.saVisit source
- Reference 15MODONmodon.gov.saVisit source