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
1Industrial employment totaled 1.2 million jobs in 2023, up 7.5% YoY
Verified2Saudization rate in industry reached 28% in 2023
Verified3Manufacturing sector employed 850,000 workers in 2023, +6.8%
Verified4Mining employment 150,000 in 2023, up 4.2%
Directional5Female industrial workforce 120,000 in 2023, +15% YoY
Single source6Vocational training graduates for industry: 50,000 in 2023
Verified7SME industrial jobs 400,000 in 2023
Verified8Expat workers in industry 750,000 in 2023, down 2%
Verified9Youth employment in industry 250,000 aged 18-30 in 2023
Directional10Petrochemical sector jobs 200,000 in 2023
Single source11Construction materials employment 180,000 in 2023
Verified12Food industry workforce 300,000 in 2023, +5%
Verified13Metals sector employed 120,000 in 2023
Verified14Plastics jobs 90,000 in 2023
Directional15Pharmaceuticals employment 25,000 in 2023, +12%
Single source16Automotive sector jobs 40,000 in 2023
Verified17Electronics workforce 30,000 in 2023
Verified18Textiles jobs 50,000 in 2023
Verified19Furniture employment 60,000 in 2023
Directional20Machinery sector 70,000 jobs in 2023
Single source21Chemicals workforce 110,000 in 2023
Verified22Fertilizers jobs 20,000 in 2023
Verified23Glass sector 25,000 employees 2023
Verified24Rubber employment 15,000 in 2023
Directional25Leather jobs 10,000 in 2023
Single source26Jewelry workforce 18,000 2023
Verified27Average industrial wage SAR 8,500/month in 2023
Verified28Industrial training programs enrolled 100,000 workers in 2023
VerifiedEmployment 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
1Foreign direct investment in industry reached SAR 120 billion by end-2023, up 15% YoY
Verified2Total industrial investments amounted to SAR 850 billion in 2023
Verified3Incentives under National Industrial Strategy disbursed SAR 25 billion in 2023
Verified4Private sector industrial capital reached SAR 600 billion in 2023, +12%
Directional5New industrial licenses issued: 2,800 in 2023, up 18%
Single source6Venture capital in industrial tech: SAR 10 billion in 2023
Verified7Public-private partnerships in industry valued at SAR 150 billion by 2023
Verified8Financing for SMEs in industry: SAR 40 billion via Kafalah program in 2023
Verified9Industrial zone investments totaled SAR 300 billion in 2023
Directional10Petrochemical sector FDI inflows SAR 50 billion in 2023
Single source11Mining investments hit SAR 200 billion cumulative by 2023
Verified12Renewable energy manufacturing investments SAR 30 billion in 2023
Verified13Automotive industry investments SAR 25 billion since 2020 to 2023
Verified14Pharmaceutical investments SAR 15 billion in 2023
Directional15Food processing FDI SAR 20 billion in 2023
Single source16Plastics and packaging investments SAR 18 billion YoY 2023
Verified17Metals sector capital expenditure SAR 40 billion in 2023
Verified18Electronics manufacturing FDI SAR 12 billion 2023
Verified19Cement industry expansions SAR 10 billion in 2023
Directional20Textile investments SAR 8 billion, up 10% in 2023
Single source21Furniture sector FDI SAR 6 billion 2023
Verified22Machinery investments SAR 22 billion in 2023
Verified23Chemicals FDI SAR 35 billion 2023
Verified24Fertilizer plants investments SAR 14 billion 2023
Directional25Glass manufacturing capital SAR 9 billion 2023
Single source26Rubber investments SAR 7 billion 2023
Verified27Leather FDI SAR 4 billion 2023
Verified28Jewelry investments SAR 5 billion 2023
Verified29Toys investments SAR 3 billion 2023
Directional30Printing investments SAR 2.5 billion 2023
Single source31Total industrial loans disbursed SAR 100 billion in 2023
VerifiedInvestments 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
1National Industrial Strategy launched 50 initiatives in 2023
Verified2Industrial cities development program expanded to 35 cities by 2023
Verified3Local content requirement set at 40% for industrial goods by 2023
Verified4Green industry incentives provided to 500 firms in 2023
Directional5SME industrial support program aided 10,000 enterprises in 2023
Single source6Digital transformation grants SAR 5 billion for industry in 2023
Verified7Export development program boosted non-oil exports by 12% in 2023
Verified8Mining licensing reforms approved 200 new licenses in 2023
Verified9Automotive assembly policy mandated 40% local content by 2023
Directional10Pharmaceutical localization strategy achieved 35% local production 2023
Single source11Food security industrial plan invested SAR 20 billion by 2023
Verified12Plastics recycling initiative recycled 300,000 tons in 2023
Verified13Metals downstream policy added 15 new projects in 2023
Verified14Electronics manufacturing incentives attracted 20 firms 2023
Directional15Cement capacity optimization policy saved SAR 2 billion 2023
Single source16Textile revitalization program trained 20,000 workers 2023
Verified17Furniture export promotion aided 500 SMEs in 2023
Verified18Machinery localization reached 25% in 2023
Verified19Chemicals safety regulations complied by 98% firms 2023
Directional20Fertilizer export quotas set for 5 million tons in 2023
Single source21Glass industry energy efficiency improved 15% by policy 2023
Verified22Rubber downstream processing policy launched 10 plants 2023
Verified23Leather value chain development funded SAR 1 billion 2023
Verified24Jewelry hallmarks issued to 2,000 products 2023
DirectionalPolicies 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
1In 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
Verified2The manufacturing sector's output value reached SAR 450 billion in 2023, marking a 5.1% increase from 2022, primarily from chemicals and petrochemicals
Verified3Non-oil industrial production grew by 4.7% in Q4 2023, with food products up 6.2% and plastics up 5.8%
Verified4The cement production capacity in Saudi Arabia stood at 85 million tons annually as of 2023, with utilization rate at 72%
Directional5Steel production totaled 9.2 million metric tons in 2023, a 2.8% increase driven by Hadeed's expansions
Single source6Petrochemical production volume hit 28.5 million tons in 2023, up 4.3% from previous year
Verified7Plastic products manufacturing output value was SAR 120 billion in 2023, growing 7.1%
Verified8Pharmaceutical manufacturing production reached SAR 25 billion in 2023, with local content at 45%
Verified9Food and beverage sector produced 15.4 million tons in 2023, up 3.9% YoY
Directional10Metal products output increased by 5.5% to SAR 180 billion in 2023
Single source11Rubber products production volume was 1.2 million tons in 2023, +6.4%
Verified12Electrical equipment manufacturing output hit SAR 40 billion, up 8.2% in 2023
Verified13Textile production value reached SAR 15 billion in 2023, with 12% growth
Verified14Paper and wood products output grew 4.1% to SAR 22 billion in 2023
Directional15Machinery manufacturing production was SAR 60 billion, +7.3% YoY in 2023
Single source16Fertilizer production totaled 6.8 million tons in 2023, up 5.6%
Verified17Aluminum production reached 2.1 million tons, with 3.2% growth in 2023
Verified18Glass products output value SAR 18 billion, +4.9% in 2023
Verified19Automotive parts production hit 250,000 units in 2023, up 10%
Directional20Electronics manufacturing output SAR 12 billion, +9.5% YoY 2023
Single source21Leather products production value SAR 8 billion, +3.7% in 2023
Verified22Furniture manufacturing output SAR 30 billion, up 6.8% 2023
Verified23Jewelry production value SAR 25 billion, +5.2% in 2023
Verified24Toys and sports equipment output SAR 5 billion, +11% YoY 2023
Directional25Printing and publishing production SAR 10 billion, +4.5% 2023
Single source26Other manufacturing output grew 3.9% to SAR 50 billion in 2023
Verified27Industrial production index for mining was 102.4 in 2023 (base 2021=100)
Verified28Quarrying output value SAR 35 billion, up 2.8% in 2023
Verified29Overall industrial capacity utilization rate averaged 78% in 2023
Directional30Total industrial establishments numbered 12,500 in 2023, +4.2% from 2022
Single sourceProduction 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
1Industrial non-oil exports reached SAR 300 billion in 2023, up 14% YoY
Verified2Petrochemical exports volume 25 million tons in 2023
Verified3Plastics exports value SAR 80 billion in 2023, +16%
Verified4Chemical products exports SAR 120 billion 2023
Directional5Metals exports 7.5 million tons valued SAR 90 billion 2023
Single source6Cement exports 12 million tons in 2023
Verified7Food products exports SAR 40 billion, up 10% 2023
Verified8Pharmaceuticals exports SAR 5 billion in 2023, +20%
Verified9Automotive parts exports SAR 10 billion 2023
Directional10Electronics exports SAR 8 billion, +25% YoY 2023
Single source11Textiles exports SAR 15 billion in 2023
Verified12Furniture exports SAR 12 billion 2023
Verified13Machinery exports SAR 20 billion in 2023
Verified14Fertilizers exports 5.2 million tons SAR 18 billion 2023
Directional15Aluminum exports 1.8 million tons SAR 25 billion 2023
Single source16Glass products exports SAR 6 billion 2023
Verified17Rubber products exports SAR 4 billion 2023
Verified18Leather goods exports SAR 3 billion 2023
Verified19Jewelry exports SAR 7 billion in 2023
Directional20Top export destination: UAE with SAR 50 billion industrial goods 2023
Single source21EU imports of Saudi industrial goods SAR 30 billion 2023
Verified22Imports of industrial machinery SAR 150 billion in 2023
Verified23Trade balance for non-oil industry surplus SAR 180 billion 2023
Verified24Number of industrial exporters 4,200 in 2023, up 8%
DirectionalTrade 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