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Saudi Arabia Launches Billion-Dollar Projects to Improve Industrial Sector

Saudi Arabia continues to localize pharmaceutical industries with billion-dollar projects (Asharq Al-Awsat)
Saudi Arabia continues to localize pharmaceutical industries with billion-dollar projects (Asharq Al-Awsat)
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Saudi Arabia Launches Billion-Dollar Projects to Improve Industrial Sector

Saudi Arabia continues to localize pharmaceutical industries with billion-dollar projects (Asharq Al-Awsat)
Saudi Arabia continues to localize pharmaceutical industries with billion-dollar projects (Asharq Al-Awsat)

Saudi Arabia’s industrial sector witnessed billion-dollar investment deals and the opening of qualitative new factories in 2023, within efforts to advance the country’s industry, in line with the national strategy that was developed by the country to shape the future of this sector and improve the domestic product.

According to a report issued by the Ministry of Industry and Mineral Resources on Thursday, during 2023, the government announced 50 investment opportunities in the machinery and equipment sector worth more than SAR 96 billion ($25.6 billion), as well as projects in the food industry worth SAR 20 billion ($5.3 billion).

Last year, the ministry issued a license for the first Saudi brand to manufacture electric vehicles (Ceer), which is wholly owned by the Public Investment Fund, in addition to opening the first factory in the Kingdom to manufacture electric vehicles (Lucid).

Also in 2023, the ministry issued the first industrial operating license for NEOM Green Hydrogen Company, which is based in Oxagon. The ministry signed an agreement to open the first factory for type 2 diabetes medications, and also announced another facility for the manufacture of insulin.

Saudi Arabia won the hosting of the 21st session of the General Conference of the United Nations Industrial Development Organization (UNIDO 2025).

Minister of Industry and Mineral Resources Bandar Al-Khorayef, during his speech at the closing ceremony of the Nomu industrial business accelerator and incubator initiative on Wednesday, stressed the system’s keenness to promote small and medium enterprises, which provide entrepreneurs and innovators with promising opportunities for growth and expansion into various industrial activities.

Industrial SMEs represent about 92 percent of the total number of establishments in the system and employ 55 percent of the workforce in the sector.

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Saudi Arabia's Digital Advertising Boom: Addressing Economic Leakage, Boosting Local Content

A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
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Saudi Arabia's Digital Advertising Boom: Addressing Economic Leakage, Boosting Local Content

A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
A digital advertising event recently held in Riyadh (Asharq Al-Awsat)

Saudi Arabia’s digital advertising sector is experiencing rapid growth, but a significant portion of its revenues is leaking to foreign platforms. To maximize the impact on the national economy, experts are calling for strategies to curb this outflow and redirect it to local channels.

The importance of retaining digital ad revenues lies in the substantial size of this market. It is estimated that approximately $1 billion in ad spent is lost annually to foreign platforms, representing a considerable loss to Saudi Arabia’s economy.

Dr. Ebada Al-Abbad, CEO of Marketing and Communications at Tadafuq, a Saudi digital advertising network, told Asharq Al-Awsat that the problem stems from the fact that although advertisers, products, and audiences are often local, the largest share of financial gains goes to foreign platforms. He estimated that 70-80% of the $1.5 billion spent on digital advertising in Saudi Arabia in 2022 went to global platforms such as Google and Facebook. This results in the national economy losing nearly $1 billion annually from this sector alone.

Al-Abbad noted that government agencies in Saudi Arabia also contribute to the outflow. He explained that public sector spending on digital advertising, intended to raise awareness among citizens and residents, frequently ends up on foreign platforms. Government spending makes up about 20-25% of the total digital ad market in the Kingdom, meaning hundreds of millions of riyals leave the country annually, weakening the local digital economy.

Al-Abbad argues that Saudi Arabia needs strong local digital ad networks to keep this revenue within the national economy. These networks would help create jobs, drive innovation, and promote cultural diversity in digital content. Developing local platforms would also enhance Saudi Arabia’s digital sovereignty by ensuring that data remains within the country and is not controlled by foreign entities.

Moreover, local networks would reduce dependence on international platforms, ensuring that the economic benefits of digital advertising remain in the Kingdom, he said, stressing that this would align with Saudi Arabia’s broader Vision 2030 goals, which emphasize building a robust, diversified economy driven by local industries and digital transformation.

Globally, the digital advertising sector is growing rapidly. In 2022, worldwide spending on digital ads reached $602 billion, and it is projected to hit $876 billion by 2026. In the Middle East and North Africa (MENA) region, the digital ad market grew to $5.9 billion in 2022, with Saudi Arabia’s market accounting for over $1.5 billion.

In other countries, the digital ad sector plays a crucial role in boosting national economies. For example, in the United States, the digital advertising industry contributed $460 billion to the GDP in 2021, about 2.1% of the total. In the UK, the sector accounted for 1.8% of GDP in 2022. This shows how important digital advertising can be in driving economic growth.

One of the key challenges facing Saudi Arabia’s digital ad sector is the dominance of global platforms like Google and Facebook, which control 60% of the global digital ad market, Al-Abbad told Asharq Al-Awsat. This dominance results in a significant outflow of revenue and allows these platforms to control digital data and content. He warned that this could undermine Saudi Arabia’s national sovereignty over its digital economy.

To counter this, he emphasized that Saudi Arabia needs to build competitive local networks that can retain a larger share of the market. This will not only keep more revenue in the country but also strengthen the Kingdom’s control over its digital data and content.