A recent report by the Federation of Saudi Chambers’ economic affairs department reveals a significant surge in Saudi industrial investments, driven by the government’s 2019 decision to waive fees for expatriate workers in the sector, which has since been extended to the end of 2025.

Between 2019 and 2024, industrial investments jumped by 54%, reaching $400 billion, up from $264 billion. The report attributes this growth to the positive impact of the fee waiver introduced in 2019.

The report analyzed the industrial sector’s performance across seven key indicators, including GDP contribution, employment, and foreign investment.

Findings show that the fee waiver significantly boosted the industrial sector and economy. The sector’s GDP contribution rose to 14.7% in 2023, reaching $158 billion, up from $104 billion in 2019. Additionally, industrial establishments grew by 55.6%, totaling 11,868 in 2024.

Foreign investment also saw a notable increase, with foreign factories rising by 71.5% and foreign capital investment up 116.2%, reaching $24.8 billion.

Industrial employment reached 1.2 million workers by early 2024, with Saudis making up 12.9% of the private-sector workforce. The sector emerged as the largest job creator for Saudis, generating over 82,000 jobs from January 2023 to March 2024. Meanwhile, non-oil exports climbed 12% to $55 billion in 2023, and local content in non-oil sectors reached $303 billion.

The report also highlighted improvements in product quality, driven by the adoption of modern technologies and innovations. The fee waiver benefited over 8,000 establishments for $1.3 billion.

Now accepting applications for Fast Company Middle East’s Most Innovative Companies. Click here to apply.