Market Overview
Riyadh is the center of the largest Middle East manufacturing sector with on-going investments of over $1 Trillion. Rapid growth is driven by Vision 2030.
Riyadh is the hub for the Middle East’s industrial transformation. Public and private investments in smart manufacturing and technology is driven by a $26 Billion government investment to rapidly grow the manufacturing sector.
Saudi Arabia had the fastest growing economy amongst G20 countries in 2022. It is the largest economy in the MENA region ...
The Kingdom launched the National Industrial Strategy (NIS) on October 18, 2022. It aims to increase the number of manufacturing facilities from the current 10,728 to 36,000 factories by 2035, in support of Vision 2030 economic diversification objectives…
4.0 Factories of the Future - a Ministry of Industry and Mineral Resources initiative...
The objective of the initiative is to increase the competitiveness of the Saudi industrial sector, and to keep pace with digital industrial developments and practices at the regional and global level. Riyadh has the largest number of ready factories for this transformation.
Sector Served:
Aerospace: $36.5 Billion
The Aerospace sector is one of great importance and high priority. The Aerospace cluster has three focus areas: Advancing R&D / innovation, localization of the production of Aerospace-grade materials, and development of aerospace supply chain
Automotive: $33 Billion
Vision is to produce ~300K+ vehicles per year in KSA by 2030 enabled by the Auto City. Target to become production hub for MENA electrical cars and fuel cell vehicles.
Building Materials: $16 Billion
Amongst objectives satisfying some of the local market building materials import demand and increasing exports of high value-added semi-metal products
Chemicals: $84.3 Billion
Take advantage of natural resources and further growth in basic chemicals and from wide range of value added that include chemicals, mining, chemicals, water treatment chemicals, rubber products, construction chemicals, medical and pharma related products, personal care products, human and animal nutrition ingredients.
Food Processing: $66.5 Billion
Saudi Arabia’s overall food market is expected to grow across all segments in the coming years, reaching $66.5 Billion by 2025 due to a significant amount of dairy, meat, bakery, fruits and confectionery being imported and processed locally. Becoming a Halal Hub for the world is another strategic objective.
Machinery & Equipment: $16.5 Billion
The Kingdom vision for the Machinery & Equipment industry is to “Build a vibrant industrial equipment and machinery cluster focused on traditional product categories that are regionally competitive as well as to develop globally competitive national champions in key emerging technologies”
Pharmaceutical & Biotech: $32 Billion
The Saudi Pharma market is looked at as one of the fastest growing markets today with strong export potentials. This market is expected to continue to grow rapidly and provide 30% of the needs of MENA by 2025.
Medical Devices: $5.3 Billion
There are huge opportunities which stem out of the need to provide health care services to a population forecasted to reach 39 million in addition to the 30 million pilgrims targeted to be served by 2030, with fast response time for emergencies by continually monitoring every single pilgrim’s vital sign, screening and identifying communicable diseases.
Renewables Cluster: $159.6 Billion
This sector is expected to be amongst the highest growth sectors because of the multiple advantages the Kingdom offers that include geographical proximity to three continents, direct free trade access to the GCC market, attractive tax exemptions, human capital development support, highly competitive land and energy costs, very attractive loan structures, well developed infrastructure, highly educated young workforce, and abundance of natural resources and minerals.
Minerals & Metals: $19 Billion
At present, the Minerals and Metals Cluster is directing its efforts towards developing the aluminum, steel, base and specialty metals, in addition to industrial minerals such as quartz, silica, ferroalloys and others.
