Upgrade of 30% of Saudi plants to generate SAR 250B returns: Official
Khalil Salamah, Vice Minister of Industry Affairs, said the upgrade of 30% of Saudi Arabia's factories will generate an economic return of up to SAR 250 billion, Al-Eqtisadiah newspaper reported.
He added that the upgrade requires significant financial investments, noting that the returns will be substantial and rewarding.
By the end of 2025, the total number of factories entering the industrial transformation phase will reach around 4,000, with about 3,000 more factories targeted in the coming years.
Salamah indicated that the amount spent so far on upgrading production lines has reached SAR 800 million, expecting this amount to reach between SAR 18 billion and SAR 22 billion in the coming years.
He confirmed that the ministry will provide incentives to reduce the burden on factories, enabling them to recover capital faster.
The Industrial Beacons Program aims to develop 1,300 factories, noting that only 5% of them show genuine indicators of readiness to enter the transformation track.
So far, 10 factories have committed to two-year investment plans for transformation worth between SAR 600 million and SAR 800 million, including 5 factories affiliated with Aramco that are in advanced stages of implementation.
According to Argaam data, Salamah inaugurated the advanced manufacturing and production center that aims to enable the latest advanced manufacturing technologies. This aims to enhance industrial transformation in the Kingdom and elevate the competitiveness of Saudi industry both regionally and globally.
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