Saudi Arabia is aiming to reduce its dependence on the oil industry and leap towards becoming a powerhouse in automated manufacturing.
According to industry sources on the 24th, Saudi Arabia is striving to restructure its industries around future advanced technologies, reducing its reliance on oil, which accounts for 40% of its Gross Domestic Product (GDP) and 80% of its exports.
The automation trend in Saudi Arabia is rapidly progressing on a large scale under the government’s leadership. Advanced manufacturing and AI-based technologies, which guarantee growth and profitability, are essential elements. Thus, the transition to a smart factory manufacturing environment in Saudi Arabia is expected to accelerate.
The Saudi Ministry of Industry and Mineral Resources announced the “Future Factories Program” in 2022 to stimulate smart factories. Through the Future Factories Program, Saudi Arabia aims to establish 4,000 smart factories by converting new and existing factories into smart factories.
The government plans to set up an investment company to produce automation robots. Last month, Crown Prince Mohammed bin Salman established “ALAT,” a subsidiary under the Public Investment Fund (PIF), aiming to create a global advanced industrial hub.
ALAT was established to enhance technological capabilities in seven areas, including semiconductors, smart devices, smart buildings, smart appliances, smart health, advanced industries, and next-generation infrastructure, and to support the manufacturing of Saudi products to be introduced to the global market. It plans to invest $100 billion by 2030 to build a world-class manufacturing hub in Saudi Arabia through partnerships with international companies.
Saudi Arabia also plans to establish a joint venture company for next-generation industrial robots with Japan’s SoftBank Group. Through the joint venture company of ALAT and SoftBank Group, Saudi Arabia aims to accelerate the development of the automation robot industry in the country, apply the joint venture’s products and technologies to newly established factories in Saudi Arabia, and play a role as an innovative leader in the smart factory sector globally. It aims to invest up to $150 million to operate the factory by the end of this year.
A KOTRA official said, “Saudi Arabia is actively attracting investment in new industries to reduce its dependency on oil in all industries.” He added, “With various investment incentives and the government’s strong will towards advanced manufacturing plants, there could be many opportunities for Korean companies in the local automation robot and solution fields.”
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