02 Sep 2024
RIYADH: The Madinah region saw a significant rise in economic activity, with active commercial registrations reaching 61,833 by the end of the second quarter of 2024.
This boost was largely driven by growth in the transportation and construction sectors. According to a report from the Madinah Chamber of Commerce and Industry, the total number of economic activities in the region climbed to 105,132, reflecting an 8.6 percent increase from the same period the previous year.
Among the sectors, transportation and storage emerged as standout performers, experiencing a 19.1 percent growth. This sector includes land, sea, and air transport, along with logistics and warehousing services.
The construction sector also saw a robust increase of 18.8 percent, encompassing building, renovation, installation, and roadwork projects.
The mining sector, though smaller, demonstrated notable progress with a 12.7 percent growth rate. This growth aligns with the Kingdom’s broader strategy to diversify its economy through the development of its mineral resources. Service-related activities also saw a substantial rise, growing by 11.2 percent, while the food and accommodation sector experienced a 7.5 percent increase.
However, not all sectors shared in the prosperity. The financial sector faced a 14.7 percent decline, and the healthcare sector saw a decrease of 6.1 percent.
City of Madinah
In the city of Madinah, the financial sector experienced challenges, with a 15.3 percent drop in registered financial activities compared to the previous year. The healthcare sector also saw a downturn, with a 5.4 percent reduction in activities.
On a positive note, the contracting and transportation sectors both surged by 18.7 percent, and the mining sector grew by 13.1 percent. Madinah itself accounted for the largest share of active commercial registrations, totaling 55,903, which represented 90.41 percent of the region's total.
The economic report also provided insights into the geographic distribution of economic activities. Madinah city dominated, accounting for 92 percent of all registered activities, while other governorates such as AlUla, Al-Henakiyah, Al-Mahd, and Khyber contributed the remaining 8 percent. AlUla stood out with 3,388 registered activities by the end of the quarter.
Labor market trends
Labor market trends revealed that Madinah ranked fifth among Saudi Arabia’s regions in terms of total employment, with 443,487 individuals employed, representing 3.5 percent of the Kingdom’s workforce.
Notably, 84.5 percent of these jobs were in the private sector. By the end of the first quarter of 2024, 89,512 Saudi nationals were employed in the private sector, pushing the Saudization rate to 23.9 percent — a slight increase from previous quarters.
Real estate, consumer prices
The report also covered trends in the real estate and consumer markets. The Real Estate Price Index in Madinah showed a modest increase of 0.07 percent in the first quarter of 2024 compared to the last quarter of 2023, indicating a stable property market. Meanwhile, the Consumer Price Index rose by 1.48 percent in May compared to the same month in 2023, reflecting the impact of inflation on the cost of living.
Overall, the second quarter of 2024 marked a period of significant economic advancement for the Madinah region, with positive indicators suggesting continued prosperity in the coming months.