Saudi Ministry of Investment: New factories’ capitals exceed SR6.2 bln in 2Q

The Saudi Ministry of Investment revealed that the capital of new factories in the Kingdom of Saudi Arabia amounted to SR6.2 billion, adding that the growth rate of new factory licenses in May 2022, compared to May 2021, an increase of 33.9%, while the growth rate of the number of factories that started production in May 2022, 87.9%, compared to May 2021.

The Ministry of Investment confirmed manufacturing activity performance kept strong in the second quarter of 2022 AD, as it witnessed the issuance of about 151 licenses for new factories during the months of April and May, and about 59 factories began to produce in the month of April, while about 62 factories in the month of May.

The Ministry noted that during the past year, and especially in the third quarter of 2021 AD, the industrial sector showed remarkable growth, due to the strong interest that the rational government gives to the sector as part of the plan to diversify the economic base of the Kingdom’s Vision 2030.

The Ministry of Industry and Mineral Resources also focused on transformation Digital in its procedures, as it carried out a number of reforms, including: Launching a digital platform for industrial licenses, allowing the granting of an immediate industrial license when allocating land for the factory by the relevant authorities. In addition, several incentive packages related to financing and export subsidies were introduced during the period.