Saudi Industrial Cities Reach 4,938 Factories in 2025

Oct 24, 2026•2 min read

The number of operating factories in Saudi Arabia's industrial cities reached 4,938 across 36 cities during 2025, marking an 18.9% increase compared with 2024. The growth reflects continued expansion in the Kingdom's manufacturing base.

Industrial-city land allocation, ready-built factories, industrial services, and operating requirements are managed by MODON. The organisation handles the full journey for investors, from applying for land to obtaining an operating licence.

How land allocation and fees work

There is no single fixed fee for industrial land. Costs vary by city, location, type of activity, and plot area. Allocation fees can be paid monthly over 24 months or as a one-time payment, and payment ends once commercial production begins. Land contracts can run for up to 20 years from the payment date, with annual rent paid at the start of each contractual year.

Applicants typically need a valid commercial registration, a feasibility study, technical project details, a business plan, the required area, production capacity, and investor documents. Foreign investors generally require an investment license from the Ministry of Investment before applying. Applications are submitted through MODON's electronic services, followed by document review, allocation approval, contract issuance, fee payment, construction or factory preparation, and finally obtaining the operating licence.

Fees for ready-built factories and industrial land differ by city and facility size, and there is no universal price schedule covering all 36 cities. For residents and entrepreneurs weighing industrial investment, the rising factory count signals a steadily growing sector — one aligned with the Kingdom's drive to strengthen local manufacturing.

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