WHY RIYADH
WHY RIYADH?
Riyadh region is experiencing significant growth and investment, which is proceeding in accordance with well thought- out plans and programs. With the unwavering support of the wise leadership, as well as its advantages and potential for investment, Riyadh will become a major international investment hub. Riyadh region is the economic powerhouse of Saudi Arabia and a leading hub in the Middle East. With large-scale transformation, industry growth and government initiatives across the region, Riyadh's competitive and unrivaled investment environment is creating a global brand that attracts talent, businesses, tourists, and is synonymous with prosperity and quality of life. The region is seeing notable growth across key industries — from foundational sectors such as healthcare and education, to technology-enabled areas and renewable energy — due to its coordinated, efficient, responsive, competitive, and fiscally sound government. This growth is in large part supported by big and bold government initiatives which are facilitating transformation across the Kingdom. Among these initiatives is the national regional headquarter (RHQ) program which has led to premier multinational organizations establishing a base of operations in Riyadh and transforming the region into a leading global destination. With Riyadh contributing almost 50% of the Kingdom's non-oil GDP, sectors across the region are supporting the country's diversification endeavors and are full of investment potential. Home to over 3,587 factories, Riyadh's manufacturing sector is supporting this diversification and the Kingdom's growing production of key items within machinery and other equipment, and food products.
Riyadh is a promising industrial manufacturing investment destination supported by the region's location, connectivity, access to raw materials and ongoing government initiatives. Riyadh's industrial manufacturing sector is expected to grow in the years to come, creating key investment opportunities for the country. Home to over 3,500 factories and 8 industrial cities, the highest number across the Kingdom with 188 machinery and equipment factories located within the region, Riyadh accounts for approximately 40% of the Kingdom's manufacturing sector, the largest number across the Kingdom. The region offers a competitive location which is well-connected to regions with abundant natural resources. The Saudi Industrial Development Fund (SIDF) has awarded 70 loans totaling USD 256 million in 2020 to finance industrial investment opportunities in Riyadh - an increase of 100% from 35 loans, with a total of USD 177 million in 2019. With a surplus of skilled workers and fiscal incentives (such as SIDF loans, which reduce operational costs), the sector is expected to attract global manufacturing companies to Riyadh. In 2020, the National Industrial Development and Logistics Program (NIDLP) invested USD 2.4 billion in developing industrial infrastructure in the Kingdom. Moreover, knowledge sharing initiatives such as the Saudi Advanced Manufacturing Hub (Saudi AMHUB) promotes the adoption of advanced manufacturing and access to advanced technology such as machine learning and internet of things (IoT) that aid in reducing operating costs.