Business · Economy · 8 hrs ago
Saudi Arabia’s Major Projects Offer Growth Opportunities for Smaller Factories
Saudi Arabia’s major projects could bring more business to small and medium-sized factories by creating demand for locally made goods and support services.
The opportunities include supplying products and services such as transport, storage, maintenance and engineering.
The contracts could help factories expand production, improve products and build experience that may help them win more customers.
The Public Investment Fund and its subsidiaries spent 207 billion riyals on local content in 2024, although that spending was not limited to small factories.
Factories still face cash-flow and steady-demand challenges, as well as requirements to meet buyers’ standards, quantities and delivery schedules.
Experts say smaller suppliers need financing, preparation for working with large companies and opportunities suited to their capacity.
Better access to contracts could keep more spending in Saudi Arabia, support local production and create jobs, but factories also need a range of customers to sustain that growth.
Major projects in Saudi Arabia are creating opportunities for small and medium-sized factories to expand and join local supply chains.
Demand linked to the projects includes industrial products and supporting services such as transport, storage, maintenance and engineering.
Factories’ ability to benefit depends on overcoming financing and cash-flow constraints, qualifying with larger companies, and meeting requirements for quantities, specifications and delivery times.
Experts told Asharq Al-Awsat that factories need suitable opportunities, financing to carry out contracts and a track record that can help them compete for larger orders.
Public Investment Fund spending on local content reached 207 billion riyals in 2024, according to the article.
- Who
- Small and medium-sized factories in Saudi Arabia, alongside providers of related services.
- What
- Major projects are creating opportunities for them to expand and join local supply chains.
- When
- The article was published on November 8, 2026; the opportunities are described as ongoing.
- Where
- Saudi Arabia.
- Why
- Major projects and local-content purchasing create demand for locally made products and supporting services.
This story does not have two clearly opposing sides.
Public Investment Fund and its subsidiaries spent 207 billion riyals on local content, according to the article.
The article’s photo caption refers to the Saudi Factories exhibition.
Asharq Al-Awsat published the article on opportunities for smaller factories.
- Local-content spending
- 207 billion riyals in 2024
- Local-content spending in dollars
- 55.2 billion dollars
- Industrial business accelerator applications
- 350 applications during the previous year, according to Abdullah Al-Salloum
- Global share of companies
- Small and medium-sized enterprises account for about 90 percent
3 sources
What people are saying
Small and medium-sized enterprises represent about 90 percent of companies worldwide, provide between 60 and 70 percent of jobs, and contribute about 50 percent of global gross domestic product.
The Saudi industrial sector has received government support and incentives that have helped strengthen confidence in investment and expansion, but factories still face daily challenges related to cash flow and continuity of demand.