In June of 2023, the Saudi Arabia Ministry of Industry and Mineral Resources granted 73 industrial licenses. The most prominent among the 5 industrial activities was the production of food items, accounting for 19 licenses. Further, the ministry unveiled that the total investment value for the new licenses issued in June amounted to SR1.8 billion.
The ministry has reported a total of 557 industrial licenses until June since the start of the year. Among the newly licensed factories, a total of 93 commenced production in June, with an aggregate investment value of SR3.3 billion.
The numbers
The majority of these new industrial licenses were obtained by small enterprises, making up 86.30 percent. Medium-sized establishments secured 12.33 percent, while micro-enterprises acquired 1.37 percent.
Categorizing by investment type, national factories garnered the largest share of licenses at 72.60 percent, trailed by foreign enterprises at 16.44 percent, and establishments with joint investments at 10.96 percent.
Read more: Spending soars in Saudi, investment remains strong
Analyzing the production initiations by ownership, national factories took the lead at 79.57 percent, trailed by foreign factories at 11.83 percent, and factories with joint investments at 8.60 percent.
In January of this year, Saudi issued 46 mining licenses. The total number of industrial establishments in the kingdom has expanded to 10,982 factories, with their combined investment value exceeding SR1.4 trillion.
Investing in food security
However, the forefront of this production included food factories, which accounted for 20 establishments. Following food production was the production of base metals, which secured 7 licenses. Subsequently, was the manufacturing of chemicals and related products.
Aligning with the National Industrial Strategy and Saudi Vision 2023, the kingdom is investing in its food security. The initiative has attracted investment projects that will be worth up to $20 billion by 2035. Investment deals worth SR232 million ($61.8 million) were recently signed by the Saudi Authority for Industrial Cities and Technology Zones (MODON).
These deals are expected to boost chocolate, yogurt, and fish production in Saudi Arabia. MODON has awarded seven contracts covering 99,400 square meters, primarily benefiting the food and beverage sector in the Kingdom.
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