<p>Financing serves a significant part in ensuring economic stability for companies. Access to long-term financing may minimize the cost of lending and enable firms to invest in capital projects while managing financial risk effectively. This study emphasizes the role of financing structures in fostering innovation, inclusion, and sustainable economic development within evolving economic systems. This study explores the impact of the different types of financing on the profitability of companies in Saudi Arabia. Using financial data from non-financial listed companies in Saudi Arabia, this study analyses the relationship between long-term financing and firm profitability while controlling for relevant financial factors. The dataset for this study was collected from the annual financial reports of publicly traded companies in Saudi Arabia. We collected some financial data from the Saudi financial stock market dataset. Data collection includes total assets, return on equity, firm size, long-term debt, short-term debt, and total debt. This study offers a novel contribution to the field of manufacturing industries by providing a comprehensive analysis of the profitability of long-term financing in manufacturing industries, understanding the impact of long-term financing on manufacturing industries, and providing practical recommendations for implementing long-term financing in Saudi manufacturing industries. Based on a dataset ranging from the period 2009–2019 for 157 companies operating in the non-financial sector and using the dynamic panel data GMM estimates, the research finds that both short and long-term financing affect profitability positively and significantly. The research indicates that the association between financing and profitability will be moderated by the size of the company. The result of this study will provide insights into the role of long-term financing in the growth and profitability of companies in Saudi Arabia.</p>