Saudi Arabia is setting new benchmarks for its industrial sector, targeting 36,000 factories by 2035 with a local output valued at SR 1.4 trillion ($373 billion), according to Khalil bin Salamah, Deputy Minister of Industry and Mineral Resources for Industrial Affairs. The goal represents a doubling of industrial growth compared to the previous seven decades, underscoring the Kingdom’s push to strengthen its manufacturing base and global competitiveness.

Speaking at the 2026 Budget Forum, bin Salamah said the expansion aligns with major structural reforms underway across the Kingdom. These include phasing out liquid fuels in favor of electricity and gas, adjusting energy prices, reducing carbon emissions, and preparing Saudi industries to compete globally beyond 2030.

He explained that the Industrial Sector Competitiveness Program, developed in collaboration with several government entities, is based on three key principles: gradually replacing liquid fuels, mitigating financial pressure on factories until alternatives are in place, and upgrading older equipment to enhance energy efficiency. Together, these measures are intended to deliver “a positive impact on both consumers and citizens.”

The program aims to support 2,400 factories through immediate, development-focused, and enabling measures. Key targets include cutting carbon emissions by 22 million tons annually by 2030, training 20,000 workers in the sector, and displacing 130,000 barrels of oil equivalent per day from industrial use.

The initiative is also expected to generate $9.59 billion in indirect investments, with $1.59 billion directly supporting program objectives. Government returns could reach up to four times the initial investment. The plan also seeks to protect the baseline output of existing and planned factories, which contribute $139.3 billion to the national economy.

Bin Salamah stated that the ministry remains committed to ensuring the industrial transformation remains aligned with Saudi Vision 2030, thereby advancing a more sustainable and competitive manufacturing sector capable of driving long-term economic diversification.