Impact of Economic Sustainability in Apparel Factories on Economic Challenges in Saudi Arabia

Abstract

The global apparel industry has resisted challenges over the past decade, the garment industry in the Kingdom of Saudi Arabia also faced many challenges at the local and international level. The implementation of the rules and regulations of the World Trade Organization (WTO) and the Kingdom's Vision 2030 has received special attention and economic sustainability has become one of the main objectives of garment factories. The study uses the interview in data collection and the descriptive approach in the qualitative analysis of the data. The impact of economic sustainability on the economic challenges facing (10) small and medium garment factories has been studied with the aim to identify the challenges and economic factors that affect the business strategy and feasibility of implementing economic sustainability. It was concluded that some of the economic challenges are represented in the high operating cost caused by the application of new taxes, including the value-added tax (VAT), imposition of fees on non-Saudi workers and the updated rules and regulations of the Ministry of Commerce. As such, it was concluded that the economic sustainability component represented in production efficiency, reducing operating costs through modern manufacturing techniques, and reducing supply costs, was a key solution to ensure the survival and sustainability of factories. The study recommended the necessity of implementing industrial cooperation with factories and related companies and preparing a strategic plan to attract investors.

Sustainable Economic Development: A Systematic Literature Review on Global Perspectives and Strategies

“…Addressing the challenges of sustainable development involves establishing clear responsibilities for economic entities towards the environment, society, and personnel (Bogeanu-Popa, 2019). Economic sustainability plays a crucial role in industries like apparel factories, where reducing costs, enhancing productivity, and investing in human resources are essential for sustainable economic growth (Al-Daadi, 2021). Unsustainable exploitation of natural resources due to a historical focus on economic dimensions has led to challenges in sustainable development (Afiyah et al, 2023).…”