Kingdom’s industrial transformation driven by Vision 2030
Saudi Arabia Witnesses an Unprecedented Industrial Transformation Driven by Vision 2030 and Advanced Infrastructure
The Kingdom of Saudi Arabia is undergoing a historic and unprecedented transformation, reshaping its economy under a new compass guided by Saudi Vision 2030. While oil has long formed the backbone of the national economy, the Kingdom is now moving toward diversifying its revenue sources and creating added value across various sectors, with the industrial sector taking the lead.
To achieve these objectives, Saudi Arabia is building a strong industrial base with global competitiveness, focusing on localizing advanced strategic industries, enabling technology, knowledge, and innovation, and relying on smart and advanced infrastructure.
Advanced Industrial Cities
The Kingdom’s industrial transformation is implemented through a comprehensive and integrated industrial ecosystem led by the Ministry of Industry and Mineral Resources. This ecosystem is guided by the objectives of the National Industrial Strategy, which is the main driver of Saudi Arabia’s industrial renaissance. Its impact is evident in advanced industrial cities and specialized clusters across the Kingdom, focusing on vital sectors such as aviation, automotive, food industries, mining, and petrochemicals.
Currently, there are 40 industrial cities and over 12,000 factories as of the end of 2024, with plans to reach 36,000 factories by 2035. These cities and clusters do not only focus on manufacturing and production; they are also economic hubs that connect production sites to local and global markets through modern ports, railways, and advanced road networks.
Recognizing the importance of economic diversification and industrial development, Saudi Arabia has made strategic investments to establish integrated and robust industrial infrastructure, building industrial cities and specialized clusters to increase the added value of national industry and localize advanced manufacturing technologies.
In this context, Jubail and Yanbu serve as key hubs in the global petrochemical sector, while Ras Al-Khair on the Arabian Gulf coast has become a pivotal center for mining industries, hosting one of the world’s largest aluminum complexes in addition to phosphate and other mineral production.
In the southwest, Jazan Industrial City leads in heavy industries, energy-intensive activities, food industries, and agriculture. King Abdullah Economic City (KAEC) offers a unique industrial model that combines manufacturing and logistics, including one of the world’s most advanced ports, strengthening its position as a global trade hub. In central Saudi Arabia, Sudir Industrial and Business City serves as a specialized industrial and logistics zone, attracting major investments in pharmaceuticals, food, and light manufacturing, contributing to the development of the national supply chain.
Industrial Clusters for Future Industries
To enhance global competitiveness and localize promising industries, the Kingdom has launched several specialized industrial clusters representing strategic hubs for future industries.
In Jeddah, the First Aero Park in the "Modon" industrial oasis was launched as the first specialized cluster for aircraft manufacturing and maintenance. Covering 1.2 million square meters, it is established in cooperation between the Ministry of Industry and Mineral Resources and the General Authority of Civil Aviation. This cluster aims to localize advanced technologies and provide an investment-friendly environment for the aviation industry, featuring modern manufacturing facilities and advanced R&D centers focusing on aircraft components, defense systems, and space technologies. Its strategic location near King Abdulaziz International Airport and Jeddah Islamic Port enhances its role. This initiative supports the Kingdom’s vision to become a regional and global air transport hub with a capacity of 30 million passengers and 2 million tons of annual cargo.
In KAEC, the King Salman Automotive Complex provides an integrated and stimulating environment for manufacturing traditional and electric vehicles, localizing technologies and attracting global industry leaders to produce 300,000 vehicles annually within a single industrial complex. The cluster aims to position Saudi Arabia as a key player in sustainable mobility through strategic partnerships with leading global companies to localize production, transfer technology, and develop supply chains.
Global Food Clusters
Saudi Arabia has also launched several food industry clusters to enhance food security, including the world’s largest food manufacturing cluster in Jeddah, covering 11 million square meters, with 75 factories spanning up to 107,000 square meters, and large warehouses of 134,000 square meters.
This cluster, developed with investments of 20 billion riyals, aims to strengthen food security, reduce import dependence, and lower operational costs by 5–12% through integrated services and advanced infrastructure. By 2035, the cluster targets over 800 factories across 10 specialized activities in the food industry, enhancing Saudi Arabia’s position in global food manufacturing and exports.
In April, the Saudi Authority for Industrial Cities and Technology Zones (Modon) launched a dairy industrial cluster in Al-Kharj Industrial City, covering 1 million square meters. It includes dairy and feed factories, packaging facilities, and storage units, providing a sustainable and integrated industrial production environment. Al-Kharj alone produces 70% of the Kingdom’s dairy output, meeting domestic and regional demand.
Ports and Railways for Logistics Integration
Ports and railways play a central role in supporting this industrial transformation. Jeddah Islamic Port remains a key hub for food exports and imports, King Abdullah Port serves high-value industries, Ras Al-Khair Port is vital for mineral exports, and Jazan Port facilitates exports to Africa.
The North-South Railway links mining areas with industrial cities and ports, while preparations are underway for the ambitious Land Bridge Project, connecting the Red Sea to the Arabian Gulf and reinforcing Saudi Arabia’s role as a major regional and international trade corridor.
A Saudi Industrial Revolution
Saudi Arabia’s industrial transformation is not just a strategy—it is a vision being implemented on the ground, with factories adopting advanced technologies, specialized clusters in advanced industries such as aviation, food, and automotive, and a rapidly growing economy based on knowledge and innovation, supported by advanced infrastructure and comprehensive growth plans.
Through an integrated system—including modern ports, advanced transport networks, and smart investment incentives—the Kingdom continues to attract high-quality local and international investments, strengthen a competitive business environment, and create added value in the industrial sector.
With the continued implementation of Vision 2030 targets, Saudi Arabia is advancing toward a prominent position on the global industrial map, evolving into a leading global industrial power, capable of producing, innovating, and exporting. What is happening in the Kingdom is not just a transitional phase but a comprehensive Saudi industrial revolution, telling the story of a nation determined to shape its future through the hands of its people, proving that when vision turns into action, ambition becomes reality.