22/10/2026 04:04 AST
Factories operating in Saudi Arabia's industrial cities increased 18.9 percent in 2025, while the number of hotels across the Kingdom jumped 31.6 percent to 2,847, official data showed.
According to the General Authority for Statistics, the Kingdom added nearly 800 factories over the year to reach 4,938 across its 36 industrial cities.
Hotel rooms exceeded 491,000 by the end of 2025, and the number of travel and tourism agencies also increased by more than 400 to reach 3,177.
Airports remained unchanged at 29 by the end of 2025, while domestic and international flights exceeded 979,000, carrying nearly 141 million passengers.
The growth comes as Saudi Arabia accelerates efforts to diversify its economy under Vision 2030, targeting 150 million tourists annually by the end of the decade and doubling the industrial sector's contribution to gross domestic product.
Commenting on the Kingdom's growing factory base, Tony Hallside, CEO of STP Partners, said the significance of the expansion lies in Saudi Arabia's diversification investments translating into productive capacity, creating businesses that generate non-oil revenues and strengthen domestic supply chains.
"Industrial infrastructure, ready-built facilities and access to development finance are helping reduce the barriers to establishing manufacturing operations. For investors, a broader manufacturing base creates opportunities to finance expansion and develop businesses that could eventually access the Kingdom's capital markets," said Hallside.
He added that the sustainability of this investment would depend on manufacturers demonstrating competitive costs and reliable cash flows, giving private capital a clear commercial reason to participate.
Nicholas Nahas, a partner at Arthur D. Little, said the rapid expansion of hotel supply was a notable achievement as Saudi Arabia works toward its tourism goals.
"This increase in hotels and additional room capacity suggests these hospitality development projects are attracting investment and advancing through construction and handover stages to operators," said Nahas.
He added: "Saudi Arabia leads the Middle East in hotel expansion, which is a fundamental infrastructure to enable tourism visits and increase the tourism sector's GDP contribution to 10 percent."
In September, an analysis by global hospitality consultancy HVS revealed that the Kingdom is driving hotel expansion across the Middle East, with 110,000 rooms under development, about half of the region's hotel pipeline.
Banking and financial firms
According to GASTAT, the number of commercial banks in Saudi Arabia reached 1,910 by the end of 2025, representing a modest increase of 0.3 percent.
Automated teller machines exceeded 14,000, down 2.7 percent from 2024, highlighting the growing role of digital money usage in the Kingdom.
Social Development Bank branches stood at 20 in 2025, a decline of 20 percent compared to the previous year.
In the agricultural sector, the Agricultural Development Fund maintained 61 branches and centers. The Ministry of Environment, Water and Agriculture operated 13 branches, unchanged from 2024, and 103 offices.
Arab News
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