Saudi Arabia’s long-term bet on industrialization is gaining scale, with total investments in its flagship industrial cities surpassing SR1.5 trillion ($400 billion) by the end of 2025, according to the latest annual report from the Royal Commission for Jubail and Yanbu.

This milestone highlights the Commission’s expanding role as a central enabler of the National Industrial Development and Logistics Program (NIDLP), a key pillar of the Kingdom’s economic transformation strategy to position Saudi Arabia as a global hub for industry and logistics. The program focuses on developing and integrating major sectors, including manufacturing, mining, energy, and logistics, while enhancing their overall investment appeal.

At the same time, the scale of investment reflects alignment with the National Industrial Strategy, which prioritizes strengthening local industries, increasing value creation, and expanding the production base. The broader goal is to boost economic competitiveness while accelerating the contribution of non-oil sectors to GDP.

The foundations for this transformation were laid decades ago. Established in 1975, the Royal Commission was tasked with developing Jubail and Yanbu into integrated industrial cities, leveraging the Kingdom’s hydrocarbon resources to build downstream petrochemical and manufacturing ecosystems. These ecosystems were designed with built-in infrastructure, from ports to industrial services, to support seamless industrial growth.

Over time, both cities have evolved into critical pillars of Saudi Arabia’s industrial base and export capacity. The launch of Saudi Basic Industries Corp. (SABIC) in 1976 further accelerated this trajectory, helping to establish a globally competitive petrochemical sector.

Today, the industrial ecosystem is coordinated through NIDLP, which brings together key entities driving the Kingdom’s industrial transformation. These include the Saudi Authority for Industrial Cities and Technology Zones (MODON), the Saudi Industrial Development Fund (SIDF), and the Ministry of Industry and Mineral Resources, aligning financing, land development, and sectoral expansion.