Business · Economy · 7 hrs ago
How Saudi Arabia’s Mid-Sized Cities Could Build Global Industries
A city’s size alone does not determine its economic strength; specialised industries, skilled workers and links to global markets can help it prosper.
The German town of Künzelsau is an example: Würth began there as a small wholesaler in 1945 and grew into a global supplier of fastening and assembly materials.
Economist Hermann Simon counted about 1,573 “hidden champion” companies in Germany at the end of 2020, out of roughly 3,400 worldwide.
Saudi Arabia’s factories and population are concentrated in a few regions: Riyadh, the Eastern Province and Mecca accounted for about 81% of producing factories at the end of 2025, while Riyadh and Jeddah held about a third of the population in the 2022 census.
Jubail and Yanbu show how major investment can build industrial centres, while other regions could develop specialisms such as cultural tourism in AlUla or mining in the north.
Large projects can help local suppliers grow if they buy from businesses in their own regions and share technical knowledge.
The analysis says progress should be judged by local supplier growth, productivity, exports and skilled jobs as Saudi Arabia approaches 2030.
Saudi Arabia’s mid-sized cities could build global industries by developing specialized strengths and connecting local firms to international markets.
The article argues that city size matters less than productivity, specialized knowledge and links to overseas markets.
It says major companies can help grow local suppliers by sharing expertise, setting technical standards and creating sustained demand.
The article points to tourism, creative industries, mining and related manufacturing as possible regional opportunities in Saudi Arabia.
It recommends measuring local economic impact through supplier growth, productivity, exports and skilled jobs.
- Who
- Saudi Arabia’s mid-sized cities, local businesses and major companies.
- What
- The article proposes building specialized regional industries linked to global value chains.
- When
- Published on November 9, 2026. It discusses opportunities ahead of 2030.
- Where
- Saudi Arabia, with examples including AlUla, northern regions and the southern mountain areas.
- Why
- To broaden productive activity beyond major urban centers and help regional businesses grow and reach export markets.
This story does not have two clearly opposing sides.
Würth began as a small wholesale business selling screws and nuts in Künzelsau, Germany.
Economist Hermann Simon had counted about 1,573 German “hidden champion” companies, out of roughly 3,400 worldwide.
Saudi Arabia’s census showed that about one-third of the country’s population lived in Riyadh and Jeddah.
The Riyadh, Eastern and Makkah regions contained about 81% of Saudi Arabia’s producing factories.
Al Eqtisadiah published the article on the potential of mid-sized cities.
- Publication date
- November 9, 2026
- Würth’s founding
- 1945, in Künzelsau, Germany
- German hidden champions
- About 1,573 at the end of 2020
- Population concentration
- Riyadh and Jeddah held about one-third of Saudi Arabia’s population in the 2022 census
- Factory concentration
- Riyadh, Eastern and Makkah regions held about 81% of producing factories at the end of 2025