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Kingdom of Saudi Arabia Launches Next Phase of Industrial Revolution Under Vision 2030
RIYADH, SAUDI ARABIA, May 28, 2025 /EINPresswire.com/ -- In the heart of the Arabian Peninsula, the Kingdom of Saudi Arabia is undergoing an unprecedented historic transformation, redrawing the contours of its economy under the guiding framework of Vision 2030.
While oil and gas have long served as the backbone of the national economy, the Kingdom is now steering decisively toward economic diversification, establishing a robust industrial base that aspires to compete on a global scale.
Today’s factories are not merely echoing the sounds of production and innovation, they embody an ambitious drive to build a modern economy grounded in technology, knowledge, and smart infrastructure.
Industrial Cities and Technological Clusters Across the Kingdom
This transformation is materializing through an integrated industrial system that spans the Kingdom—from industrial cities to specialized clusters in key sectors such as aviation, automotive, food industries, mining, and petrochemicals.
With 40 industrial cities already developed, the Kingdom aims to operate 36,000 factories by 2035. These cities are not just production hubs; they are emerging economic centers strategically linked to local and global markets through a modern network of seaports, railways, and advanced highways.
Massive Investments Fueling Industrial Growth
At the heart of this industrial renaissance, lies strategic investment and solid infrastructure. Recognizing the importance of economic diversification, the Kingdom has injected billions of riyals into establishing industrial cities and specialized clusters focused on enhancing value-added output and localizing technologies.
Among the flagship hubs are the Jubail and Yanbu industrial cities, which serve as global pillars of the petrochemical sector, reinforcing the Kingdom’s status as a global energy powerhouse. Meanwhile, Ras Al-Khair Industrial City, situated on the Gulf coast, has emerged as a vital center for mining industries. It is home to the Ma’aden aluminum complex, one of the world’s largest and most comprehensive industrial sites, alongside the production of phosphate and other minerals.
In the south, Jazan Industrial City is positioning itself as a key hub for heavy industries and energy-intensive activities, alongside agro-industrial and food processing sectors. King Abdullah Economic City (KAEC) offers an integrated model that combines manufacturing, logistics, and residential zones, and houses one of the world’s most advanced ports—bolstering its role as a center for global trade. In central Saudi Arabia, Sudair Industrial and Business City has emerged as a specialized industrial and logistics zone attracting investments in pharmaceuticals, food processing, and light manufacturing—contributing to the development of the national supply chain.
Specialized Clusters Aligned with Future Industries
As part of this transformation, the Kingdom has launched several specialized industrial clusters that serve as strategic pillars for developing future industries.
In Jeddah, the first aerospace industrial cluster—named “Aero Park One”, situated in the MODON Oasis, was established as an industrial city spanning 1.2 million square meters. This initiative is a collaboration between the Ministry of Industry and Mineral Resources and the General Authority of Civil Aviation. The cluster aims to localize advanced technologies and create an attractive investment environment for the aviation industry through modern manufacturing facilities and advanced research and development centers focused on aircraft components, defense systems, and space technologies.
Strategically located near King Abdulaziz International Airport and Jeddah Islamic Port, this initiative aligns with a broader vision to position the Kingdom as a regional and global hub for air transport, with a projected capacity of 30 million passengers and an annual cargo handling capacity of two million tons.
Electric Vehicles: Innovation-Driven Industrial Ambitions
In KAEC, another strategic cluster is taking shape: the electric vehicle manufacturing complex. This project seeks to establish the Kingdom as a key player in sustainable mobility by fostering partnerships with major global automakers to localize production, transfer cutting-edge technologies, and develop integrated supply chains.
Food Security: Unrivalled industrial clusters
Also in Jeddah, the Food Industry Cluster stands as the Kingdom’s first purpose-built food manufacturing complex. Spanning over 11 million square meters, it currently houses 75 factories with units reaching up to 107,000 square meters each, and massive warehouses totaling 134,000 square meters.
With foreign investments totaling $5.3 billion, the cluster aims to bolster food security, reduce reliance on imports, and lower operating costs by 5% to 12%, by utilizing integrated infrastructure and services. The goal is to develop over 800 factories by 2035, across 10 specialized sub-sectors, positioning Saudi Arabia as a major player in the global food manufacturing and export landscape.
In April this year, the Saudi Authority for Industrial Cities and Technology Zones (MODON), launched a dairy industrial cluster in Al-Kharj Industrial City, marking a significant step in advancing the Kingdom’s food security agenda. Covering an area of 2 million square meters, the cluster will establish a full integrated ecosystem, encompassing dairy processing plants, packaging facilities, feed production farms, and storage units.
The new cluster offers a sustainable, world-class production environment and a suite of investment incentives, including ready-built factories and shared cold and dry warehouses.
Al-Kharj currently accounts for more than 70% of the Kingdom’s dairy output, serving both domestic and regional markets. In 2024, the market was valued at $5.86 billion.
Dairy exports achieved a value of $1.28 billion and while imports reached $2.37 billion – reaffirming Saudi Arabia’s growing self-sufficiency in the dairy sector.
Ports and Railways: The Backbone of Industrial Connectivity
Modern ports and railways also play a pivotal role in enabling this industrial transformation. Jeddah Islamic Port remains the primary gateway for food imports and exports, while King Abdullah Port specializes in serving high-value industries. In addition, Ras Al-Khair Port is dedicated to mineral exports, and Jazan Port supports the industrial city and facilitates exports to African markets.
Complementing these ports is the North-South Railway, a key infrastructure project linking mining regions with industrial cities and ports. In parallel, preparations are underway for the Saudi Land Bridge, one of the most ambitious rail projects in the region, set to connect the Red Sea with the Arabian Gulf—positioning the Kingdom as a vital corridor for regional and international trade.
A Saudi Industrial Revolution—Taking Shape on the Ground
Saudi Arabia’s industrial transformation is not merely a policy vision—it is a tangible, unfolding reality. From bustling factories in Jeddah to cutting-edge laboratories in aviation clusters, and from smart production lines in the automotive sector to sprawling industrial zones across the Kingdom, a knowledge-driven, innovation-led economy is taking root.
Powered by a cohesive ecosystem of advanced ports, modern transport networks, and intelligent investment incentives, the Kingdom continues to attract global capital, while fostering a competitive business environment that supports sustainable, diversified growth.
As Vision 2030 progresses, Saudi Arabia is ascending the ranks of the global industrial sector —not just as a consumer or exporter of raw materials, but as a nation that produces, innovates, and exports.
This is not merely a transitional phase; it is a comprehensive Saudi industrial revolution—a story of a nation boldly crafting its future, proving that when a vision turns into action, ambition becomes a reality.
While oil and gas have long served as the backbone of the national economy, the Kingdom is now steering decisively toward economic diversification, establishing a robust industrial base that aspires to compete on a global scale.
Today’s factories are not merely echoing the sounds of production and innovation, they embody an ambitious drive to build a modern economy grounded in technology, knowledge, and smart infrastructure.
Industrial Cities and Technological Clusters Across the Kingdom
This transformation is materializing through an integrated industrial system that spans the Kingdom—from industrial cities to specialized clusters in key sectors such as aviation, automotive, food industries, mining, and petrochemicals.
With 40 industrial cities already developed, the Kingdom aims to operate 36,000 factories by 2035. These cities are not just production hubs; they are emerging economic centers strategically linked to local and global markets through a modern network of seaports, railways, and advanced highways.
Massive Investments Fueling Industrial Growth
At the heart of this industrial renaissance, lies strategic investment and solid infrastructure. Recognizing the importance of economic diversification, the Kingdom has injected billions of riyals into establishing industrial cities and specialized clusters focused on enhancing value-added output and localizing technologies.
Among the flagship hubs are the Jubail and Yanbu industrial cities, which serve as global pillars of the petrochemical sector, reinforcing the Kingdom’s status as a global energy powerhouse. Meanwhile, Ras Al-Khair Industrial City, situated on the Gulf coast, has emerged as a vital center for mining industries. It is home to the Ma’aden aluminum complex, one of the world’s largest and most comprehensive industrial sites, alongside the production of phosphate and other minerals.
In the south, Jazan Industrial City is positioning itself as a key hub for heavy industries and energy-intensive activities, alongside agro-industrial and food processing sectors. King Abdullah Economic City (KAEC) offers an integrated model that combines manufacturing, logistics, and residential zones, and houses one of the world’s most advanced ports—bolstering its role as a center for global trade. In central Saudi Arabia, Sudair Industrial and Business City has emerged as a specialized industrial and logistics zone attracting investments in pharmaceuticals, food processing, and light manufacturing—contributing to the development of the national supply chain.
Specialized Clusters Aligned with Future Industries
As part of this transformation, the Kingdom has launched several specialized industrial clusters that serve as strategic pillars for developing future industries.
In Jeddah, the first aerospace industrial cluster—named “Aero Park One”, situated in the MODON Oasis, was established as an industrial city spanning 1.2 million square meters. This initiative is a collaboration between the Ministry of Industry and Mineral Resources and the General Authority of Civil Aviation. The cluster aims to localize advanced technologies and create an attractive investment environment for the aviation industry through modern manufacturing facilities and advanced research and development centers focused on aircraft components, defense systems, and space technologies.
Strategically located near King Abdulaziz International Airport and Jeddah Islamic Port, this initiative aligns with a broader vision to position the Kingdom as a regional and global hub for air transport, with a projected capacity of 30 million passengers and an annual cargo handling capacity of two million tons.
Electric Vehicles: Innovation-Driven Industrial Ambitions
In KAEC, another strategic cluster is taking shape: the electric vehicle manufacturing complex. This project seeks to establish the Kingdom as a key player in sustainable mobility by fostering partnerships with major global automakers to localize production, transfer cutting-edge technologies, and develop integrated supply chains.
Food Security: Unrivalled industrial clusters
Also in Jeddah, the Food Industry Cluster stands as the Kingdom’s first purpose-built food manufacturing complex. Spanning over 11 million square meters, it currently houses 75 factories with units reaching up to 107,000 square meters each, and massive warehouses totaling 134,000 square meters.
With foreign investments totaling $5.3 billion, the cluster aims to bolster food security, reduce reliance on imports, and lower operating costs by 5% to 12%, by utilizing integrated infrastructure and services. The goal is to develop over 800 factories by 2035, across 10 specialized sub-sectors, positioning Saudi Arabia as a major player in the global food manufacturing and export landscape.
In April this year, the Saudi Authority for Industrial Cities and Technology Zones (MODON), launched a dairy industrial cluster in Al-Kharj Industrial City, marking a significant step in advancing the Kingdom’s food security agenda. Covering an area of 2 million square meters, the cluster will establish a full integrated ecosystem, encompassing dairy processing plants, packaging facilities, feed production farms, and storage units.
The new cluster offers a sustainable, world-class production environment and a suite of investment incentives, including ready-built factories and shared cold and dry warehouses.
Al-Kharj currently accounts for more than 70% of the Kingdom’s dairy output, serving both domestic and regional markets. In 2024, the market was valued at $5.86 billion.
Dairy exports achieved a value of $1.28 billion and while imports reached $2.37 billion – reaffirming Saudi Arabia’s growing self-sufficiency in the dairy sector.
Ports and Railways: The Backbone of Industrial Connectivity
Modern ports and railways also play a pivotal role in enabling this industrial transformation. Jeddah Islamic Port remains the primary gateway for food imports and exports, while King Abdullah Port specializes in serving high-value industries. In addition, Ras Al-Khair Port is dedicated to mineral exports, and Jazan Port supports the industrial city and facilitates exports to African markets.
Complementing these ports is the North-South Railway, a key infrastructure project linking mining regions with industrial cities and ports. In parallel, preparations are underway for the Saudi Land Bridge, one of the most ambitious rail projects in the region, set to connect the Red Sea with the Arabian Gulf—positioning the Kingdom as a vital corridor for regional and international trade.
A Saudi Industrial Revolution—Taking Shape on the Ground
Saudi Arabia’s industrial transformation is not merely a policy vision—it is a tangible, unfolding reality. From bustling factories in Jeddah to cutting-edge laboratories in aviation clusters, and from smart production lines in the automotive sector to sprawling industrial zones across the Kingdom, a knowledge-driven, innovation-led economy is taking root.
Powered by a cohesive ecosystem of advanced ports, modern transport networks, and intelligent investment incentives, the Kingdom continues to attract global capital, while fostering a competitive business environment that supports sustainable, diversified growth.
As Vision 2030 progresses, Saudi Arabia is ascending the ranks of the global industrial sector —not just as a consumer or exporter of raw materials, but as a nation that produces, innovates, and exports.
This is not merely a transitional phase; it is a comprehensive Saudi industrial revolution—a story of a nation boldly crafting its future, proving that when a vision turns into action, ambition becomes a reality.
Naif Alotaibi
Ministry of Industry and Mineral Resources
+966 50 531 8694
naif.alotaibi@fleishman.com
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