The activity of manufacturing industries in Saudi Arabia recorded a record growth in the first quarter of this year, as it jumped by about 11.8 percent as the highest annual growth rate, according to available data since 2010.
The volume of manufacturing activity at the end of the first quarter amounted to about 82.53 billion riyals, compared to about 73.8 billion riyals for the same period last year 2020, to record a historical level in the size of the sector.
According to the monitoring unit of the reports in the “Al-Eqtisadiah” newspaper, which was based on official data, the participation rate of manufacturing activity in the Saudi economy rose during the first quarter to 13 percent, according to fixed prices, compared to about 11.3 percent for the same period last year.
The activity of manufacturing industries in Saudi Arabia consists of the “oil refining” sector, in addition to the manufacture of food and beverage products, the wood industry, textiles, furniture, papermaking, chemicals, pharmaceuticals, rubber products, plastics and others.
The “oil refining” sector constitutes about 25.7 percent of the manufacturing industries, equivalent to 21.18 billion riyals, while the rest of the other manufacturing industries constitute 74.3 percent, equivalent to 61.34 billion riyals.
The “oil refining” sector was the most affected during the period, as it recorded a growth of 21.2 percent, while other manufacturing industries grew by 8.9 percent, as the first is related to oil, whose prices were positively affected during the period.
The activity of manufacturing industries is one of the most important activities in Saudi Arabia, as it contributes to enhancing local content and diversifying the production base.
The Kingdom’s Vision 2030 aims to increase the contribution of manufacturing industries, in order to improve the balance of payments by increasing exports and reducing imports.
According to the data of the Ministry of Industry and Mineral Resources, the number of productive industrial establishments at the end of the first quarter of this year amounted to about 9.59 thousand facilities, with an investment volume of 1.12 trillion riyals.
The largest percentage of the number of factories is concentrated in the production of metals of all kinds, then rubber and plastics factories, which exceeded a thousand factories, and food factories come third, whose investments are estimated at about 87 billion riyals and the number of 1121 factories, according to a recent statement by the Ministry.
The manufacturing activity managed to recover from the effects of Covid-19 after recording growth for the third consecutive quarter, as the sector grew by 4.1 percent in the third quarter of 2020 after recording negative growth for two consecutive quarters, and about 11.3 percent from the fourth quarter of the same year, in addition to to a growth of 5.8 percent for the first quarter of this year, on a quarterly basis.
On the other hand, Saudi Arabia launched, last March, the “Made in Saudi Arabia” program, which aims to support national products and services at the local and global levels. The program comes out of the Crown Prince’s interest in supporting the national product and enhancing its role, especially that national products enjoy high quality and great competitiveness. At the regional and global levels, in addition to emphasizing on increasing awareness and confidence in the national product.
Economic Reporting Unit