Saudi Arabia To Upgrade 4,000 Factories Into AI-Powered Smart Facilities

Saudi Arabia will transform more than 4,000 factories into smart, AI-enabled industrial facilities, marking a major milestone in its ongoing economic transformation under Vision 2030. The initiative aims to drive innovation, automation, and advanced manufacturing as the Kingdom accelerates its transition toward a diversified, technology-driven economy.

The announcement was made during the third annual Saudi Forum for the Fourth Industrial Revolution (4IR), where the Kingdom outlined its strategy to position itself as a global leader in advanced industries. The event was organised by the Centre for the Fourth Industrial Revolution Saudi Arabia (C4IR Saudi Arabia) in collaboration with the World Economic Forum (WEF) and the King Abdulaziz City for Science and Technology (KACST). It brought together ministers, global experts, and industry leaders to discuss how technology, sustainability, and innovation will shape the next chapter of Saudi Arabia’s industrial growth.

During a key panel titled “Industrial Leadership in the Era of Convergence,” Bandar Alkhorayef, Minister of Industry and Mineral Resources, announced a strategic shift in Saudi Arabia’s industrial policy. He emphasized that the focus has evolved from keeping pace with global developments to actively driving the future of global industry. This transformation is being realized through the modernization of over 4,000 factories into smart facilities powered by artificial intelligence (AI), automation, 3D printing, and other emerging technologies.

Moderated by Dr. Basma AlBuhairan, Managing Director of C4IR Saudi Arabia, the discussion highlighted how Saudi Arabia’s industrial leadership is embedding technology, innovation, and sustainability at the core of its growth framework. Alkhorayef explained that the Ministry is developing new industrial capabilities focused on emerging technologies while also expanding digital infrastructure, nurturing national talent, and refining regulatory frameworks. These efforts aim to attract foreign investment and ensure the safe and effective adoption of AI and automation across key sectors.

The 4IR Forum featured twelve in-depth panel discussions that examined the latest global trends and local opportunities in the Fourth Industrial Revolution. Sessions explored topics such as the integration of drones, satellites, and AI in manufacturing, the evolution of smart factories and digital twins, and the growing potential of quantum technologies to enhance cybersecurity and trust in digital systems.

Participants also experienced an interactive metaverse showcase of the KACST Advanced Manufacturing Centre, led by Dr. Ibrahim AlShunaifi, an expert researcher and project leader at KACST. The virtual session highlighted Saudi Arabia’s growing ecosystem for advanced manufacturing, including demonstrations of additive and subtractive production technologies and smart logistics systems.

Speakers throughout the forum stressed the importance of human capital in the global shift from physical to knowledge-based economies. They underscored that investment in people particularly in education, digital skills, and mental well-being is just as vital as investment in technology. Saudi Arabia’s youth and tech entrepreneurs were recognized as central to building a resilient and innovative industrial future.

On the sidelines of the forum, officials also launched the PeerLink digital platform, designed to help small and medium-sized enterprises (SMEs) share expertise, access resources, and accelerate their digital transformation journeys. Additionally, three joint publications with the World Economic Forum were released, including “Deployment Pathways for Advanced Air Mobility Lessons from Early Implementation in Saudi Arabia,” “From Barriers to Breakthroughs: How Peer-to-Peer Learning Can Help SMEs Embrace Digital Transformation,” and “Building Communities for Impact: Lessons from the Centres for the Fourth Industrial Revolution India and Saudi Arabia.”

Together, these initiatives reflect Saudi Arabia’s growing influence as a regional and global hub for industrial innovation. By aligning technology, sustainability, and human development, the Kingdom continues to advance its Vision 2030 objective of building a resilient, knowledge-driven, and future-ready economy powered by smart manufacturing and artificial intelligence.