The number of factories in Saudi Arabia’s Northern Borders region experienced in the third quarter(Q3) of 2023, a remarkable growth of 58.3 percent. The total investment in the region reached SAR74.3 billion ($19.8 billion). This increase in factory numbers and investment can be attributed to the efforts of a strategic regional development office, which attracted corporate spending for business setups. A report released by the Arar Municipality stated that the investment in Q3 surpassed the amount invested in the same period of the previous year, which was SAR73.9 billion.
The report published by the Saudi Press Agency (SPA) also highlighted that the number of factories in the region increased significantly from 36 industrial units in the third quarter of 2022 to 57 by the end of the third quarter of 2023. Of these factories, 38 were engaged in the production of non-metallic mineral products, accounting for approximately 66.7 percent of the region’s manufacturing plants. In addition, these non-metallic mineral factories represented 1.9 percent of similar nationwide production facilities.
285 مليون ريال ارتفاع في قيمة الاستثمارات الصناعية بمنطقة #الحدود_الشمالية . https://t.co/OcSd6iBaGV pic.twitter.com/knnygJ00xJ
— إمارة منطقة الحدود الشمالية (@NorthborderSA) January 8, 2024
Surge in commercial registrations
In November 2023, the city of Arar hosted the “Northern Borders Region… Promising Investment Opportunities” business forum. This event coincided with a 32 percent increase in commercial registrations, reaching a total of 15,442 from 2018 to 2023. Saudi Minister of Commerce, Majid bin Abdullah Al-Qasabi, noted that this surge in commercial registrations indicated a thriving business environment and increased interest in entrepreneurial ventures in the region.
Establishment of strategic office
Additionally, to enhance the quality of life in the Northern Borders region, Crown Prince Mohammed bin Salman announced the establishment of the Strategic Office for the Development of the Northern Borders region in February 2023. Moreover, this regional office is part of a broader initiative that aims to address obstacles and challenges hindering economic growth. Also, it demonstrates the Kingdom’s commitment to transforming all cities and provinces into significant hubs for internal and external investments, global tourism, and various events encompassing political, economic, cultural, and sports domains. Also, similar offices and development agencies have been established in several regions across the country.
Contribution to GDP
Additionally, the Northern Borders area covers an area of 133 sq. km and has a population of 400,000. It contributes SAR27 billion to the Kingdom’s gross domestic product. The region holds substantial phosphate reserves, accounting for 7 percent of the global reserve, as well as significant natural gas reserves.
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