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Thursday, Sep 18, 2025

Saudi Arabia to Transform 4,000 Factories into Advanced, Higher-Quality Industries

Saudi Arabia to Transform 4,000 Factories into Advanced, Higher-Quality Industries

The Saudi Ministry of Industry and Mineral Resources and the Saudi Authority for Industrial Cities and Technology Zones (MODON) signed a Memorandum of Understanding (MoU) with OXAGON, home to advanced and clean industries in NEOM, to cooperate in the implementation of the Future Factories Program.  
The Future Factories Program aims to analyze factories' operational readiness by assessing their Smart Industry Readiness Index (SIRI) and transform over 4,000 factories into advanced and higher-quality industries through automation and enhanced efficiency, raising the sector's global competitiveness.  

The MoU aims to develop legislation, incentives, and enablers to support the Program to remove barriers to industrial innovation in the Kingdom.  

Experts from all parties will assess the industry's readiness and explore ways to integrate advanced manufacturing technologies, such as artificial intelligence, 3D printing, and the Internet of Things (IoT), into manufacturing industries.  

Deputy Minister of Industry and Mineral Resources Osama al-Zamil said that the agreement laid the groundwork for implementing the Future of Factories.  

Zamil explained that the Ministry seeks to enhance the competitiveness of local industries and create significant job opportunities in critical areas for the Saudi youth in line with the goals of Vision 2030.  

"We are promoting local manufacturing, enhancing current factories according to world-class standards, and establishing state-of-the-art manufacturing facilities that guarantee higher efficiency and increased productivity." 

NEOM and OXAGON are pioneers leading the way in cutting-edge technology and industry and are ideally placed to inspire future industries and the next generation of talent in Saudi Arabia.  

NEOM CEO Nadhmi al-Nasr said the memorandum represents a significant milestone in realizing the signatories' shared ambitions to sustainably future-proof industries and drive economic diversification across the country.  

OXAGON represents the future of advanced clean industries and will be powered by 100 percent renewable energy.  

Nasr explained: "Together with the Ministry of Industry and Mineral Resources and MODON – whom we enjoy close relationships with – we will deploy our considerable collective resources and talents to develop such industries for the Kingdom and the world."  

OXAGON CEO Vishal Wanchoo sressed that OXAGON is continuously seeking new ways to transform the future of manufacturing and create a sustainable industrial blueprint for the world.  

"By mixing the state-of-the-art approaches from Industry 4.0, utilization of solely renewable energy and circular economy principles, OXAGON will enable industries of the future to avoid environmental degradation and preserve efficiency and profitability," said Wanchoo.  

He noted that the Advanced and Clean Manufacturing Improvement Tool would play a critical role in supporting the local industry through this important transition.  

During the next several months, OXAGON and MODON will form a joint working group to develop an action plan to implement the programs.  

Efforts will be devoted to developing a policy program and work models to create future industries. 

Launched in November, OXAGON is a new paradigm where technology, industry, and people come together harmoniously with nature.  

OXAGON will be home to NEOM's advanced and clean industries, a research and innovation hub, an automated and integrated port, a supply chain network, and several thriving communities. 
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