Industry Ministry's Initiatives Reduce Costs For Saudi Factories, Boost Global Competitiveness

Riyadh, October (پاکستان پوائنٹ نیوز ‎‎‎ 20 اكتوبر 2025ء) In pursuit of these goals, the ministry has launched several initiatives and programs designed to boost the competitiveness of national factories and reduce production and operating costs, as part of a strategic approach to make Saudi Arabia's industrial investment environment more attractive.

Among the ministry’s key initiatives is the Industrial Sector Competitiveness Program, which supports the sector by reducing one of its largest operating expenses: energy consumption. The program focuses on providing immediate solutions to improve energy efficiency, encourage the shift toward more sustainable energy sources, and raise awareness of best practices that enhance the long-term competitiveness of industrial facilities.

The program targets 16 industrial sectors, with more than 500 facilities applying to benefit from it. Participating companies have achieved up to 40 percent reductions in energy consumption and around 12 percent decreases in production costs. More than 100 facilities have also undergone energy audits conducted by certified auditors.

Through the program, the ministry aims to reduce carbon emissions, optimize energy use, and improve the operational efficiency of production inputs. It also seeks to create investment opportunities in energy-efficiency projects and develop human capital specialized in energy management systems.

Recognizing the importance of adopting advanced technologies to lower manufacturing costs and boost productivity, the ministry launched the Future Factories Program, which aims to automate 4,000 factories and transform them into smart facilities adopting Fourth Industrial Revolution technologies. This transformation contributes to enhancing operational efficiency and reducing reliance on unskilled labor.

To enable this transformation, the program offers several initiatives and financial incentives to cover the costs of purchasing machinery and software required to improve production efficiency. It also works on enhancing the human capabilities leading the industrial transformation within these facilities.

More than 490 factories have benefited from the program's solutions, with 114 accredited service evaluators and providers on boarded and more than SAR28 million in financial incentives approved. In addition, over 1,200 trainees have joined specialized training programs to develop their skills in advanced manufacturing technologies.

As part of its efforts to ease the financial burden on industrial enterprises, the ministry has also expanded the scope of industrial customs exemptions to include a wide array of imports by facilities holding valid industrial licenses. The exemption now covers specific materials and products, including raw materials, semi-finished and finished goods, packaging materials, machinery and equipment, and spare parts directly required for industrial production operations.

These initiatives reaffirm the ministry's commitment to reducing industrial costs, supporting sector growth, and enhancing global competitiveness, thereby contributing to Saudi Arabia’s economic development and environmental sustainability goals.