The manufacturing activity in Saudi Arabia exceeds pre-pandemic levels

The activity of manufacturing industries in Saudi Arabia has experienced growth record in the second quarter of questyear, leaping 13.8% as the highest annual growth rate, according to data available since 2010.

The volume of manufacturing activity in the second quarter was approximately 76.68 billion riyals, compared to approximately 67.37 billion riyals in the same quarter of 2020, when the sector recorded its lowest level since 2014 due to the pandemic.

According to a monitoring conducted by the daily Al-Eqtisadiah, based on official data, manufacturing activity in Saudi Arabia was able to recover from the effects of Covid-19 after recording a result that exceeded pre-pandemic levels, with the sector growing by about 0.7% compared to the levels recorded in the second quarter of 2019. 76, 17 billion riyals.

While the participation rate of manufacturing industries in the Saudi economy increased in the second quarter to 13%, at constant prices, compared to about 11.3% in the same period last year.

The activity of manufacturing industries in Saudi Arabia consists of the “oil refining” sector, in addition to the production of food and beverage products, the wood industry, textiles, furniture, paper making, chemicals, pharmaceuticals, products in rubber, plastic and others.

The “oil refining” sector constitutes about 28% of the manufacturing industries, equal to 21.3 billion riyals, while the rest of the other manufacturing industries constitute 72%, equal to 55.4 billion riyals.

The “oil refining” sector recorded a growth of 10.1%, while the other manufacturing industries grew by about 15.3%, being the first linked to oil, whose prices were positively affected in the period.

The activity of manufacturing industries is one of the most important activities in Saudi Arabia, in how much it contributes to enhancing the 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 data from the Ministry of Industry and Mining Resources, the number of industrial production plants at the end of the second quarter of quest’year amounted to about 10.14 thousand plants, with an investment volume of 1.278 trillion riyals, while the ministry issued 530 licenses in the first half of quest’year.

And last March Saudi Arabia launched the “Made in Saudi Arabia ”, which aims to support national products and services locally and globally, to emphasize the growing awareness and trust in the national product.

Read More About: Business News

Leave a Reply