https://arab.news/cgr4r
RIYADH: Private participation in Saudi Arabia’s industrial sector continues to rise, with the Kingdom managing to attract SR2.77 billion ($738 million) in investment for various projects during the second quarter of 2023, the latest official data showed.
The Saudi Authority for Industrial Cities and Technology Zones, also known as MODON, said this was a 23 percent jump from the SR2.26 billion recorded during the same period last year.
This comes as the Kingdom, which is also the region’s largest economy, strives to become a major manufacturing and investment hub, as part of its Vision 2030 goals.
In a post on its official Twitter handle, the authority revealed that the number of ready-built factories in the Kingdom reached 1,263 at the end of the second quarter, while the total number of factories stood at 6,055.
MODON further said it issued 203 industrial contracts during the same period, reflecting a 23 percent increase when compared to the corresponding period in 2022.
On the other hand, industrial areas grew by 100 percent to 1.62 million sq. meters, it added.
Among the industries, the food sector secured the most contracts in the second quarter, representing 17 percent, followed by the mining sector at 9 percent.
While the chemicals and rubbers sectors claimed 6 percent of contracts each, the machinery and equipment sector secured 5 percent of agreements issued in the second quarter of 2023.
MODON added that Jeddah was allocated the most number of contracts at 58, comprising 29 percent of the overall agreements in the second quarter.
Al-Kharj, located southeast of Riyadh, issued 13 percent of total agreements, comprising 27 deals.
Saudi Arabia’s historical region Sudair came next at 13 percent and 26 contracts, followed by Dammam and Madinah regions, both of which stood at 7 percent and 14 contracts.
During this period, MODON said that 1,226 foreign investment deals came from 67 countries, mainly Egypt, Jordan, India, the US and the UK.
In March, the authority signed agreements worth SR10 million for the establishment of three new entrepreneurial projects, on the sidelines of Biban 2023.
This came as MODON aims to support the local content while increasing the contribution of small and medium enterprises to the Kingdom’s gross domestic product by 35 percent by 2030.
Founded in 2001, MODON develops integrated industrial land services and currently oversees 36 industrial cities across the Kingdom, with more than 5,000 factories, as well as private industrial complexes and cities.