RIYADH: Saudi Arabia’s Northern Borders region saw a 58.3 percent growth in factory numbers in the third quarter of 2023, with total investment hitting SR74.3 billion ($19.8 billion).
Driven by a strategic regional development office, the area attracted increased corporate spending for business setups during that period, rising from SR73.9 billion in the third quarter of the previous year, according to a report issued by the Arar Municipality.
The report highlighted that the number of factories reached 57 by the end of the third quarter last year, a significant increase from the 36 industrial units reported in the same period of 2022.
The municipality added that the region had 38 factories producing non-metallic mineral products, comprising approximately 66.7 percent of the area’s manufacturing plants by the end of the third quarter of 2023. This represents 1.9 percent of similar nationwide production facilities.
In November 2023, Arar hosted the “Northern Borders Region… Promising Investment Opportunities” business forum, coinciding with a 32 percent increase in commercial registrations, reaching 15,442, from 2018 to 2023.
During that time, Saudi Minister of Commerce Majid bin Abdullah Al-Qasabi stated that the surge indicated a booming business environment and increased interest in entrepreneurial ventures in the region.
In February 2023, Crown Prince Mohammed bin Salman announced the establishment of the Strategic Office for the Development of the Northern Borders region to enhance the quality of life in the area.
The announcement is an extension of other similar offices and development agencies in several regions, aiming to address difficulties and obstacles that hinder the maximization of economic growth, the Saudi Press Agency reported.
The establishment of the regional office showcases the Kingdom’s commitment to transforming all cities and provinces into significant hubs for internal and external investments, global tourism, and various events encompassing political, economic, cultural, and sports domains.
The Northern Borders area spans 133 sq. km, with a population of 400,000, contributing SR27 billion to the Kingdom’s gross domestic product. It holds substantial phosphate reserves, accounting for 7 percent of the global reserve, along with significant natural gas reserves.
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