On September 20, 2024, a report from the Federation of Saudi Chambers' economic affairs department revealed that investments in the Saudi industrial sector surged by 54%, reaching SAR 1.5 trillion this year compared to SAR 992 billion in 2019. This growth is partly attributed to the government’s initiative to waive fees for expatriate workers in the industrial sector, a policy that has been extended until the end of 2025.
The report analyzes the industrial sector's achievements from 2019 to 2024, focusing on seven key indicators, including GDP contribution, the number of industrial establishments, investment volume, employment, non-oil exports, product quality, and foreign investment in the industry. Key findings suggest that the waiver of expatriate fees positively impacted both the industrial sector and the national economy. The industrial sector's contribution to GDP rose to 14.7% in 2023, amounting to SAR 592 billion, up from SAR 392 billion in 2019.
Furthermore, the number of industrial establishments grew by 55.6%, increasing from 7,625 in 2019 to 11,868 in 2024. The report also highlights a rise in foreign investment in the industrial sector, spurred by government support initiatives like the fee waiver and local content regulations. The number of foreign factories rose by 71.5%, reaching 1,067 in 2024, while foreign capital investment in the sector increased by 116.2%, rising from SAR 43 billion to SAR 93 billion.
As of the first quarter of 2024, there were 1.2 million industrial workers, including 358,000 Saudis, with industry localization reaching 28%. Saudis represented 12.9% of the total Saudi private-sector workforce. The report emphasized the role of government incentives in enhancing localization within the private sector and creating job opportunities for Saudis. Between January 1, 2023, and March 31, 2024, the industrial sector emerged as the largest job creator for Saudis, adding over 82,000 jobs and accounting for 59% of new private-sector employment.
Additionally, the industrial sector contributed to a 12% increase in non-oil exports, totaling SAR 208 billion in 2023, driven by market expansion and numerous trade agreements. Local content in non-oil sectors reached SAR 1,138 billion. The fee waivers have also enhanced the quality of domestic products through the adoption of modern technologies and the localization of cutting-edge innovations. This has increased demand for local products and boosted industrial exports, while over 8,000 establishments benefited from the fee waivers at an estimated cost of SAR 5 billion.