Saudi Arabia Registers 54% Surge In Industrial Investments After Expat Fees Waived

Investments in the industrial sector in Saudi Arabia surged 54%, hitting SAR 1.5 trillion in 2024 from SAR 992 billion in 2019. This was revealed in a report released by the Federation of Saudi Chambers’ economic affairs department. Notably, the major findings of the report indicate that the decision to waive expat fees had a positive impact on Saudi Arabia's industrial sector and national economy.

The report mainly indicates the achievements of the Kingdom's industrial sector from 2019 to 2024 based on seven key indicators, including GDP contribution, the number of industrial establishments, and foreign investment in industry. As per the report, the GDP contribution of the industrial sector stood at 14.7% in 2023, rising to SAR 592 billion from SAR 392 billion in 2019. Moreover, the number of industrial establishments increased by 55.6% from 7,625 in 2019 to 11,868 establishments this year.

The data shows that the number of foreign factories increased by 71.5% from 662 in 2019 to 1,067 this year. Additionally, by the end of the first quarter of this year, the number of industrial workers reached 1.2 million, including 358,000 Saudis. The industrial sector also contributed to a 12% surge in non-oil exports, reaching SAR 208 billion in 2023, reported the Saudi Press Agency. This growth was mainly driven by market expansion for Saudi products as well as the signing of several trade agreements.