The industrial sector in Saudi Arabia is moving at an accelerated pace towards enhancing its contribution to the GDP, in light of the economic transformation that Saudi Arabia is witnessing under Vision 2030, as the sector benefits from government incentives and significant investment opportunities under the National Industrial Development and Logistics Program (NIDLP).

The industrial sector in the Kingdom of Saudi Arabia is benefiting from government incentives and investment opportunities.

Continuous growth in industrial production

The Industrial Production Index (IPI) in Saudi Arabia increased by 3.1% compared to the same period in 2024, driven by strong growth in manufacturing activities and electricity and gas supply, according to the General Authority for Statistics (GASTAT) monthly report issued in April 2025, and the index continued its positive performance recording an annual growth of 6.5%, while manufacturing activity increased by almost 7 %, the authority confirmed in its July 2025 bulletin.

July 2025 bulletin.

Investments and expansion in the number of factories

The Ministry of Industry and Mineral Resources issued 83 new industrial licenses with investments exceeding SAR 950 million, with the opening of 58 new factories worth approximately SAR 2.85 billion, according to the ministry's June 2025 report.

Saudi Industrial Development Fund (SIDF) explained that the total cumulative industrial investments reached about SAR 1.41 trillion until the end of 2024, a significant increase from previous years, while the number of existing factories in the Kingdom increased to more than 15 thousand factories operating in various fields including chemical industries, metals, food and advanced technologies 2025.

While the number of existing factories in the Kingdom increased to more than 15 thousand factories operating in various fields including chemical industries, metals, food, and advanced technologies 2025.

The manufacturing sector increased by 5.1% year-on-year, supported by an increase in the production of the chemical industry by 14.3% and the food industry by 6.9%, which is the main driver of industrial growth thanks to the policies of supporting local content and encouraging exports adopted by the Saudi government.

The manufacturing sector increased by 5.1% year-on-year, supported by an increase in the production of the chemical industry by 14.3% and the food industry by 6.9%.

Transformation towards smart industry

As part of the Kingdom's quest to develop a digital industrial ecosystem based on artificial intelligence, data analysis and smart supply chains, the Ministry of Industry and Mineral Resources announced the launch of initiatives to digitize small and medium factories through the "Smart Industrial Transformation Program", which aims to raise productivity by 50% by 2030, in addition to developing specialized industrial zones in Riyadh, Jubail and Ras Al Khair.

Saudi Arabia is steadily moving towards becoming a hub for artificial intelligence (AI) and data analytics. Saudi Arabia is moving steadily to become a global industrial center in the heart of the region in the coming years, as the Kingdom lays the foundations for a comprehensive industrial renaissance based on diversification, sustainability and advanced technology, making the industrial sector one of the pillars of the modern national economy.