Spotlight: Logistics, Industrial, Mining Sectors Witness YoY Investment Surge

This article provides a summary of the NIDLP's 2024 report and the reasons why foreign investors are looking at Saudi Arabia as the key expansion destination.

Saudi is focused on boosting the industrial sector through targeted incentives, initiatives, and policies aimed at increasing its GDP contribution and creating jobs. This includes allowing 100% foreign ownership, reducing the cost of operations, and offering tax incentives.

The National Industrial Development and Logistics Program (NIDLP) plays a key role in developing localized execution plans for industrial operations, resulting in record-breaking yearly growth of output and performance of NIDLP-led sectors: mining, logistics, and industrials.

In this recap, we provide a summary of the NIDLP's 2024 report, which underscores Saudi Arabia's rising attractiveness to foreign investors in the industrial sphere.

Industrial and Logistics Sectors Contribute $263 Billion to Non-Oil Economy

The NIDLP delivered $262.8 billion to the Kingdom's non-oil economy in 2024, up nearly $10 billion from last year and accounting for 39% of total non-oil output.

Progress and Achievements of the Logistics and Industrial Sectors in 2024

• The Program has so far completed 163 initiatives out of 284 total projects, achieving a 57% completion rate.
• It supported over 508,000 jobs last year, with more than 81,000 going to Saudi citizens.
• Saudi Arabia exported $137 billion worth of non-oil goods and services last year, a 13% jump.
• Private investors contributed $177.3 billion across these sectors, while government-backed funds provided $52.8 billion in loans.
• In 2024, 13,000 industrial facilities launched, with 1,500 factories ready for immediate use.

Mining Sector Attracts $32 Billion in Investments

Private investment in Saudi Arabia's mining sector was approximately $32 billion in 2024, primarily focused on iron, phosphate, aluminum, and copper operations.

Additionally, the sector has witnessed a rise in mining exploration licenses, which reached 2,401 in the same year.

Companies are now spending $100 per square kilometer looking for minerals, four times what they invested just a few years ago. That translates to 32% annual spending growth, above the global average of 6-8%.

The number of companies operating in Saudi Arabia has substantially surged, from 8 in 2019 to 132, with foreign firms making up about 70% of the total count.

Moving into 2025, the momentum shows no signs of slowing down. At January's Future Minerals Forum in Riyadh, officials announced plans to open 5,000 square kilometers of mineral-rich territory for exploration in 2025. This was accompanied by the launch of the Industrial Incentive Program, which targets companies in mining.

With an estimated $2.5 trillion worth of minerals, Saudi Arabia positions itself as a key destination for mining investments. So far, only 20% of Saudi Arabia's mineral-rich land has been explored, creating ample opportunity for rapid scaling up.

Industrial Sector Records 155 New Licenses in May 2025 Alone

Industrial licensing continues its upward trajectory in 2025, with recent figures suggesting that the kingdom has issued 155 new licenses worth $865 million in May 2025 alone. These licenses cover manufacturing and industrial facilities, promising 2,450 jobs.

In the same month, 122 factories actually started production, attracting $248 million in investments and promising 2,329 jobs for people.

The continued industrial growth comes in line with Saudi Arabia's self-sufficiency objectives and growing emphasis on increasing local content (LC). These strategic properties have attracted foreign companies to set up a business in Saudi Arabia to adopt a local footprint as a means to continue to access this rapidly growing market.