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New Investments: 500,000 SQM of Saudi Industrial Areas

Saudi Arabia is working to attract local and international investments to advance the industrial sector in the country. (Asharq Al-Awsat)
Saudi Arabia is working to attract local and international investments to advance the industrial sector in the country. (Asharq Al-Awsat)
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New Investments: 500,000 SQM of Saudi Industrial Areas

Saudi Arabia is working to attract local and international investments to advance the industrial sector in the country. (Asharq Al-Awsat)
Saudi Arabia is working to attract local and international investments to advance the industrial sector in the country. (Asharq Al-Awsat)

The Saudi industrial zones managed to attract local and international investments with areas exceeding half a million square meters, after launching a package of products aimed at creating unique opportunities, providing assistance and stimulating programs for investors.

A recent report issued by the Saudi Authority for Industrial Cities and Technology Zones (MODON) - a copy of which was received by Asharq Al-Awsat - revealed that local and international investments over the past year exceeded a total value of 2.8 billion riyals (USD746 million).

During the past year, MODON signed contracts to develop and invest ready-made factories of various sizes in the industrial city of Asir, the third industrial city in Jeddah, and the third industrial city in Riyadh to serve entrepreneurs, in addition to allocating service land to complete the services system in the industrial city of Wa’ad Al-Shamal, the first industrial city in Asir, and the first industrial city in Jeddah.

MODON offers a range of innovative, diversified and highly reliable products that support the Saudi government’s continuous plans to advance the industrial sector, and contribute to diversifying sources of income, as one of the pillars of national industry empowerment and leadership.

MODON provides industrial land with developed infrastructure and services with different areas starting with 1,700 square meters to meet the needs of industrial investors, supports owners of small and medium enterprises to carry out their industrial activities, and establishes ready-made, full-service factories with various areas ranging between 700 to 1,500 square meters for investment partners and entrepreneurs.

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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)

Business activity in Saudi Arabia's non-oil sector accelerated to a four-month high in September, driven by strong demand, which led to faster growth in new orders. The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), adjusted for seasonal factors, rose to 56.3 points from 54.8 in August, marking the highest reading since May and further distancing itself from the 50.0 level that indicates growth.

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders, alongside challenges in supply. The improvement in business conditions contributed to a significant rise in employment opportunities, although difficulties in finding skilled workers led to a shortage in production capacity.

At the same time, concerns over increasing competition caused a decline in future output expectations. According to the PMI statement, inventories of production inputs remained in good condition, which encouraged some companies to reduce their purchasing efforts.

Growth was strong overall and widespread across all non-oil sectors under study. Dr. Naif Al-Ghaith, Senior Economist at Riyad Bank, said that the rise in Saudi Arabia's PMI points to a notable acceleration in the growth of the non-oil private sector, primarily driven by increased production and new orders, reflecting the sector’s expansionary activity.

Al-Ghaith added that companies responded to the rise in domestic demand, which plays a crucial role in reducing the Kingdom's reliance on oil revenues. The upward trend also indicates improved business confidence, pointing to a healthy environment for increased investment, job creation, and overall economic stability.

He emphasized that this growth in the non-oil sector is particularly important given the current context of reduced oil production and falling global oil prices. With oil revenues under pressure, the strong performance of the non-oil private sector acts as a buffer, helping mitigate the potential impact on the country's economic conditions.

Al-Ghaith continued, noting that diversifying income sources is essential to maintaining growth amid the volatility of oil markets. He explained that increased production levels not only enhance the competitiveness of Saudi companies but also encourage developments aimed at expanding the private sector's participation in the economy.

This shift, he said, provides a more stable foundation for long-term growth, making the economy less susceptible to oil price fluctuations.